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Sitharaman announces 'Mahatma Gandhi Gram Samaj' initiative to support khadi
The Mahatma Gandhi Gram Swaraj initiative will focus on strengthening Khadi

Sitharaman announces 'Mahatma Gandhi Gram Samaj' initiative to support khadi

Feb 01, 2026
12:27 pm

What's the story

Union Finance Minister Nirmala Sitharaman has announced a major initiative to boost India's traditional craft sector. "I propose to launch the Mahatma Gandhi Gram Swaraj initiative to strengthen Khadi and handloom," she said. The Mahatma Gandhi Gram Swaraj initiative will focus on strengthening Khadi, handloom, and handicrafts. The announcement was made during the presentation of the Union Budget. Sitharaman also proposed mega textile parks in "challenge mode" as part of the government's effort to accelerate growth in the textile ecosystem.

Program details

Integrated program to support labor-intensive textile sector

Sitharaman also announced an integrated program with five sub-parts to support India's labor-intensive textile sector. The components include the National Fiber Scheme, Textile Expansion and Employment Scheme, National Handloom and Handicraft Program, Text-ECON initiative, and SAMARTH 2.0. Each of these is aimed at improving production capabilities, skilling opportunities for workers in this vital industry as well as enhancing global competitiveness.

Initiative breakdown

National Fiber Scheme, Textile Expansion and Employment Scheme

The first component of the integrated program is the National Fiber Scheme, which focuses on self-reliance in natural fibers like silk, wool, and jute, as well as man-made and new-age fibers. The second part is the Textile Expansion and Employment Scheme aimed at modernizing traditional clusters with capital support for machinery, technology upgradation and common testing/certification centers.

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Support measures

Other components of the integrated program

The third component of the integrated program is the National Handloom and Handicraft Program. It seeks to integrate and strengthen existing schemes while ensuring targeted support for weavers and artisans. Sitharaman said, four, the Text-ECON initiative to promote globally competitive and sustainable textiles/apparel. The fifth part is SAMARTH 2.0 which aims at modernizing/ upgrading textile skilling ecosystem through industry-academia collaboration.

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Future plans

Mega textile parks, Mahatma Gandhi Gram Swaraj initiative proposed

"Further, I propose to set up mega textile parks in challenge mode. They can also focus on bringing value addition to technical textiles. I also propose to launch the Mahatma Gandhi Gram Swaraj initiative to strengthen handloom and handicrafts." "This will help in global market linkages and branding. It will streamline and support training, skilling, and quality processes in production. These measures will benefit...weavers, village industries, the One District, One Product (ODOP) initiative, and our rural youth," she said.

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