- The KVIB is charged with the planning, promotion, organisation and implementation of programmes for the development of Khadi and other village industries in the rural areas with the financial support of Khadi & Village Industries Commission.
- To start, encourage, assist and carry on Khadi and village industries and to carry on trade or business in such industries and in the matters incidental to such trade or business.
- To help the people by providing them with work in their homes and to give loans and other form of monetary help to individuals or societies or institutions on such terms as may be prescribed;
- To encourage establishment of co-operative societies for Khadi and village industries;
- To organise training centres to train people with a view to equip them with the necessary knowledge for starting or carrying on Khadi and village industries.