Genesis
In the Gandhian vision of "Gram Swaraj", self-reliant villages constitute the basic building blocks of sustainable economy and a humane civilization. In such a model, “Gramodyog” or village industries are expected to be the main engine of economic development. However, inspite of past 60 years of planned development and phenomenal growth in S&T institutions, and National Laboratories in the country, there is as yet, no tangible mechanism to support Rural Industrialization through adequate and appropriate inputs of Science, Technology, Management etc. The need for such a mechanism is being felt even more acutely in view of the growing globalization and liberalization of economies. The thrust on promoting Rural Industrialization has also become imperative for providing large scale employment in the rural sector.

To make this possible, it is essential that quality inputs of science, technology and managerial skills be integrated with the traditional skills and knowledge base to develop efficient means of decentralized production of quality goods. Centralized Energy-intensive industries have resulted in widespread ecological degradation and rapid resource depletion. This has led to global interest in sustainable development through decentralized production systems involving the community. For ushering in such a scenario it is essential to evolve a strategy for S&T intervention to make the community scale products & services globally competitive.

The present initiative in the form of setting up an autonomous National Institute named Mahatma Gandhi Institute of Rural Industrialization (MGIRI) at Wardha, together with a number of ‘technical interfaces’ in the major S&T institutions in different regions of the country is a significant step in the direction of creating such a mechanism. Through this network, it is expected to harness the available R&D expertise as well as facilities in the country to provide a strong backup of Science, Technology & Management to the Rural Industry sector.

The nodal Institute at Wardha has been developed during the past 7 years by the collaborative efforts of KVIC and IIT Delhi. It was decided to set up this National Institute at the historical premises of Maganwadi, Wardha where Mahatma Gandhi initiated the All India Village Industries Association (AIVIA) way back in 1934, involving prominent scientists and technologists like Sir C V Raman, Dr J C Bose to contribute towards Rural Industrialization. Great Gandhian stalwarts such as Dr J C Kumarappa, Dr Devendra Kumar, Dr G Ramachandran and others had substantially contributed in this direction during the initial phase. The Jamnalal Bajaj Central Research Institute (JBCRI) was established in 1956 under the KVIC to promote Rural Industrialization through innovative S&T inputs. It was needed to revamp this historical Institute to cope with the changes and challenges of the nineties and MGIRI is an outcome of this revamping process.

MGIRI has been developed through a project sponsored by KVIC to IIT Delhi in 2001 resulting in the development of appropriate vision, methodology, and adequate infrastructure facilities as well as model R&D projects. The infrastructure development work envisaged by this project was completed in January, 2006. The collaboration between KVIC and IITD continued during 2007-08 and the advisory role of IIT Delhi has been extended till the end of XI five year plan.