The central government has officially sanctioned the Khadi Agarbatti Atmanirbhar Mission (KAAM) 2026. Union MSME Minister Nitin Gadkari has given the green light to this innovative job-creation initiative developed by the Khadi and Village Industries Commission (KVIC). This Ministry of Micro, Small & Medium Enterprises program is designed to move India toward self-sufficiency in incense stick manufacturing.
The KAAM initiative focuses on generating employment for migrant workers and unemployed individuals while significantly boosting local incense stick production. KVIC presented the proposal to the MSME Ministry in July 2020, receiving approval on August 2, 2020. A pilot project for the Khadi Agarbatti Atmanirbhar Mission (KAAM) is set to commence shortly.
Once the KAAM project is fully operational, it is expected to generate thousands of new jobs within the incense stick sector.
KVIC's Khadi Agarbatti Atmanirbhar Mission 2026 - Comprehensive Overview
According to the MSME Ministry, KVIC structured the KAAM scheme using a Public-Private Partnership (PPP) framework. This mission aims to foster sustainable employment with minimal capital requirements. It empowers private incense manufacturers to increase their output without needing additional capital investment. Under the KAAM framework, KVIC facilitates the distribution of automatic incense-making and powder-mixing machinery to artisans, coordinated through private business partners who sign formal agreements.
Thousands of Employment Opportunities via KAAM
The government has mandated that only domestically manufactured machines be used for this mission. KVIC provides a 25% subsidy on equipment costs, with the remaining 75% recovered from artisans through manageable monthly payments. Business partners are responsible for supplying raw materials and paying worker wages based on their output.
Training costs for artisans are split, with KVIC covering 75% and the private partner covering the remaining 25%. Each automated machine is capable of producing roughly 80 kg of incense daily, creating direct jobs for four individuals. Additionally, one powder-mixing machine is allocated for every five production units, providing employment for two more people.
Projected Income from the Khadi Agarbatti Atmanirbhar Mission (KAAM)
With existing job-work rates, artisans can earn approximately Rs. 15 per kg. Four people operating one machine can produce 80 kg daily, resulting in a collective daily earning of Rs. 1200, or Rs. 300 per person. Those operating powder