In the Union Budget 2026–27, Finance minister Nirmala Sitharaman announced the launch of a new scheme named “Mahatma gandhi Gram Swaraj” as part of a wider push to strengthen traditional industries and rural livelihoods. The announcement comes amid political debates following changes to the rural employment guarantee framework in Parliament.
What Is the New Scheme?
The
Mahatma gandhi Gram Swaraj initiative is designed to
revitalise India’s textile and traditional craft sectors, with a special focus on
khadi, handloom, and handicrafts — areas historically associated with mahatma Gandhi’s vision of self‑reliance and rural economic empowerment.Under this scheme, the government plans to:
Support khadi and handloom clusters at the grassroots level to enhance production and market access.Promote
skills development and training for artisans and weavers to improve quality and competitiveness.
Link local producers with global markets by strengthening branding, quality standards, and export potential.Boost employment and economic opportunities in rural and village industries by integrating traditional crafts into modern value chains.These measures aim to create
sustainable livelihoods, encourage
rural entrepreneurship, and foster
self‑sufficiency in India’s labour‑intensive textile sector.
Why It Matters
The
Mahatma gandhi Gram Swaraj initiative also serves a symbolic purpose. It reaffirms the government’s intent to honour mahatma Gandhi’s principles of
“Swaraj” (self‑governance) and
“Swadeshi” (local self‑reliance) at a time when changes to the longstanding
Mahatma gandhi National Rural Employment Guarantee Act (MGNREGA) have sparked political debate.Critics had criticised the removal of Gandhi’s name from the old rural employment scheme when it was replaced by the
Viksit Bharat–Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB‑G ram G) Act, leading to concerns about erasing the legacy of the ‘Father of the Nation’. The new scheme, however, places Gandhi’s name at the centre of a development initiative that seeks to
strengthen rural livelihoods through traditional industries.
Sectoral Impact
Experts see the
Mahatma gandhi Gram Swaraj scheme as a
boost for India’s textile ecosystem, which includes not just khadi and handloom, but also associated handicrafts and artisanal products. By integrating training, quality improvement, and market linkages, the initiative could:Increase
employment opportunities for weavers and artisans.Stimulate
rural economic development beyond agriculture.Enhance India’s
global competitiveness in handloom and craft exports.In conclusion, the
Mahatma gandhi Gram Swaraj scheme announced in the Union Budget 2026 is intended to honor Gandhi’s ideals while driving
economic empowerment,
skill development, and
market connectivity for traditional rural industries — a strategic blend of heritage and modern growth drivers.
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