Mahatma Gandhi Gram Swaraj Initiative Proposed to Boost Handloom and Handicraft Sectors 

New Delhi, February 1, 2026: In the Union Budget 2026-27, Finance Minister Nirmala Sitharaman announced the Mahatma Gandhi Gram Swaraj Initiative (MGGSI) to strengthen India’s traditional craft sectors.  

The initiative aims to empower rural craftspeople, weavers, and village industries which would be accomplished by broadening market access, boosting skill development, and promoting sustainable livelihoods. 

Supporting Artisans and Rural Economies 

The programme mainly targets weavers, village industries, beneficiaries of the One District One Product (ODOP) initiative, and rural youth and MGGSI aims to address structural challenges. These include fragmented supply chains, inconsistent quality standards, and limited market connectivity. With this, MGGSI aims to strengthen India’s traditional crafts ecosystem.  

Sitharaman said, “The initiative aims to provide global market linkages and branding support while streamlining training, skilling, and quality of production.”

Modern Production and Market Access to Strengthen Artisans’ Competitiveness 

MGGSI encourages artisans to adopt modern production methods. This would be done while preserving traditional craftsmanship. The initiative also focuses on improving market access by better branding, and marketing and the unique initiative is certain to enable artisans to reach organised retail, export markets, and online platforms.  

Cluster-based development will provide shared infrastructure. It will reduce extensive production costs and enhance efficiency, and this would help rural and semi-urban producers increase income security. It would also compete effectively in domestic and global markets. 

Integrated Support for the Textile Sector 

The Finance Minister outlined a unique strategy to strengthen India’s labour-intensive textile sector which includes setting up mega textile parks through a challenge-based selection process, and the plan is supported by programmes like the National Fibre Scheme, textile expansion and employment initiatives, handloom and handicraft schemes, Text-ECON, and SAMARTH 2.0. 

These measures collectively aim to improve the production. This would further enhance skilling, and global competitiveness of Indian textiles. 

The Mahatma Gandhi Gram Swaraj Initiative aligns with the Budget’s broader objectives. This involves boosting domestic manufacturing, supporting inclusive growth, and creating sustainable employment opportunities.  

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