Union Budget 2026: Union Finance Minister Nirmala Sitharaman on Sunday announced fresh reforms for the textile sector, unveiling the ‘Mahatma Gandhi Handloom Scheme’ in the Union Budget 2026-27 to strengthen khadi, handloom, and handicraft industries.
Mahatma Gandhi Handloom Scheme Announced
Presenting the Budget in Parliament, Sitharaman said the new initiative is aimed at revitalising traditional textile sectors and supporting artisans and weavers.
“I propose to set up mega textile parks in challenge mode. I also propose to launch the Mahatma Gandhi Gram Swaraj initiative to strengthen khadi and handloom,” she said.
The scheme will focus on global market linkages, branding support, streamlined training and skilling, and improved production quality. It is expected to benefit weavers, village industries, rural youth, and the One District One Product (ODOP) programme.
Five-Pillar Textile Reform Plan
The Finance Minister outlined an integrated programme with 5 key components for the textile sector. The first is the National Fibre Scheme, aimed at achieving self-reliance in natural fibres such as silk, wool, and jute, along with man-made and next-generation industrial fibres.
The second pillar, the Textile Expansion and Employment Scheme, will modernise traditional clusters by offering capital support for machinery, technology upgrades, and common testing and certification facilities.
The third component is the National Handloom and Handicraft Programme, designed to consolidate existing schemes and provide targeted assistance to weavers and artisans.
Ninth Budget, Reform Push Continues
Sitharaman created history by presenting her ninth consecutive Union Budget, asserting that the “reform express” of the Narendra Modi-led NDA government remains firmly on track.
Highlighting India’s economic performance since 2014, she said the country’s growth story has been marked by stability, fiscal discipline, and sustained expansion.
“The reform express is well on its way and will maintain its momentum. Our economic trajectory reflects conscious choices made even during periods of uncertainty and disruption,” she said.
Aatmanirbharta, Growth And Global Challenges
Reiterating Aatmanirbharta as the guiding principle, Sitharaman said the government has strengthened domestic manufacturing, improved energy security, and reduced dependence on critical imports. These measures, she noted, have helped deliver growth of around 7 per cent, while driving poverty reduction and improving living standards.
She added that the government has consistently chosen decisive action, structural reforms, fiscal prudence, and monetary stability, backed by strong public investment.
Referring to global uncertainties, the Finance Minister said India is navigating an external environment marked by strained trade, disrupted supply chains, and rapid technological change. Despite these challenges, she stressed that India will continue moving confidently towards Viksit Bharat, balancing ambition with inclusion.
(Via Agency Inputs)
