As per section 15 of the Board act, function of the board is as follows:

• Establishment of Khadi and Village industry, its organization development and regulation and implementation of scheme prepared by them.
• Preparation of scheme for training and its organization for the persons engaged/interested in production of Khadi and other village industry.
• Construction of safe warehouse for arrangement of raw material and equipments and give it to persons engaged in production of Khadi or village industry on subsidized rate who are suitable in the opinion of Board.
• Arrangement of extension and sale-purchase of Khadi and village industry products.
• Research in methods of Khadi production and problem redresal related to development of village industry.
• Monitoring of institutions for development of Khadi and village industry products or help in their maintenance.v
• Production of Khadi and village industry products, help for it and promote them.
• Coordination between people engaged in Khadi and village industry and institutions which includes cooperative societies also.
• Promote efforts of people engaged in Khadi and village industry and encourage them.
• Implementation of some other subject which is allocated by state government under rules.
• To take services of concerned expert/advisors for different activities, if required, viz., survey, marketing, product packaging, hand made papers, khadi designing or other subjects related to khadi and village industry