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          <h1>Khadi Act: Defines 'khadi' and 'village industries,' sets investment caps, and includes non-manufacturing units.</h1> The Khadi and Village Industries Commission Act, 1956, defines 'khadi' as cloth woven on Indian handlooms from handspun cotton, silk, or wool yarns. A 'village industry' is described as an industry in rural areas producing goods or services, with fixed capital investment per worker not exceeding one lakh rupees, adjustable by government notification. Industries recognized as village industries before the 1987 amendment, even if not in rural areas, retain their status. For industries in hilly areas, the investment cap is increased to one lakh and fifty thousand rupees. Non-manufacturing units promoting or managing village industries are also included.

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