Clothes reflect the personality of individuals and can be used as an identity of a group, community, family, region and even country. Khadi is one such cloth that had played a key role in the freedom struggle of India and thus, has been referred to as the 'Fabric of Indian Independence'. Khadi fabric has historical significance for bringing about extensive rural empowerment. Khadi has become the invaluable asset of heritage providing respectable means of livelihood to huge human resource especially rural women.

In this paper an attempt is made to focus on various environment friendly methods and processes involved in the manufacturing, production and other developments taking place in khadi fabric. Purposive sampling technique was used for collecting the data. Semi-structured interview and observation techniques were used for data collection. Detailed information about raw material manufacturing processes, utilization of energy and water during manufacturing of cotton khadi from yarn to fabric was sought. Information was obtained with respect to waste management, by-products of the manufacturing process, nature of air pollutants and toxic substances if any produced during manufacturing process.

Results of the study confirms that khadi is handspun and handwoven in the natural environment using natural fibers and it is considered 100% natural. It does not rely on electric units and the manufacturing processes do not generate toxic waste products. Production of khadi consumes less water and energy as compared to water and energy consumed in a conventional textile mill. In the rural India khadi production meets the twin objectives of green production and employment creation. Total employment in khadi sector during 2018-19 has registered at 5 lakh persons.