Union Budget 2026: The Union government has announced the Mahatma Gandhi Gram Swaraj Initiative, a major push to strengthen the khadi, handloom and handicrafts sector by improving global market access, branding and market linkages.
The initiative is aimed at making traditional rural industries more competitive while ensuring sustainable livelihoods for artisans and weavers.
Under the initiative, structured support will be provided for training, skilling and quality improvement across production processes. The focus will be on modern techniques, standardisation and better marketing, helping artisans meet both domestic and international demand.
The programme is also expected to reinforce the One District One Product (ODOP) initiative and create new employment opportunities for rural youth.
The announcement comes shortly after India observed the death anniversary of Mahatma Gandhi on January 30, underlining the initiative’s emphasis on self-reliance, village industries and grassroots economic development.
The move also aligns with strong performance in the sector. In 2025, the Khadi and Village Industries Commission reported a record turnover of ₹1.70 lakh crore for the financial year ending 2025 and has set a target of ₹2 lakh crore for 2025–26.
Officials believe the initiative will give fresh momentum to rural industries and help Indian handmade products gain wider global recognition. Its timing is considered important as India prepares for deeper trade engagement with the European Union, where quality, sustainability and branding play a crucial role in market access.