Union Budget 2026–27: Mahatma Gandhi Gram Swaraj Initiative

Union Finance Minister Nirmala Sitharaman on February 1 announced the launch of the ‘Mahatma Gandhi Gram Swaraj Initiative’ in the Union Budget 2026–27, aimed at strengthening the khadi and handicrafts sector across the country.

The initiative seeks to streamline the production and manufacturing of khadi products and enhance their competitiveness in domestic and international markets. Presenting the Budget, the Finance Minister said the scheme would benefit weavers and rural youth, while revitalising village-based industries.

Key focus areas of the initiative include:

• Global market linkages and branding
• Streamlined training and skilling programmes
• Quality improvement and process modernisation
• Support to innovation in khadi and handicrafts

The initiative will benefit weavers, village industries and rural youth, and will also complement the One District One Product (ODOP) programme by promoting region-specific traditional products.

Highlighting the sector’s growth, the Finance Minister noted that the Khadi and Village Industries Commission (KVIC) recorded a historic turnover of ₹1.70 lakh crore in the financial year ending 2024–25, and has set a target of ₹2 lakh crore for 2025–26.