India To Set Up Textile Parks, Mahatma Gandhi Gram Samaj Initiative To Support Khadi: Nirmala Sitharaman

Union Finance Minister Nirmala Sitharaman on Sunday placed a special spotlight on India's traditional craft sector by announcing the Mahatma Gandhi Gram Swaraj initiative, a major effort aimed at strengthening Khadi, handloom and handicrafts. 

While presenting the Union Budget, the Minister said the government aims to accelerate growth in the textile ecosystem through a "challenge mode" selection process for the proposed parks.

She said, "I propose to set up mega textile parks in challenge mode. I propose to launch the Mahatma Gandhi Gram Swaraj initiative to strengthen Khadi and handloom."

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The Finance Minister also spoke about major integrated programme to support India's labour-intensive textile sector. The programme includes five key parts, each aimed at improving production, skilling, and global competitiveness, which includes National Fibre Scheme, Textile Expansion and Employment Scheme, National Handloom and Handicraft Programme, Text-ECON initiative, and SAMARTH 2.0.

Elaborating on the programmes, she said, "I propose an integrated programme with five sub-parts. One, the National Fibre Scheme for self-reliance in natural fibres such as silk, wool and jute, man-made fibres, and new-age fibres. Two, the Textile Expansion and Employment Scheme to modernise traditional clusters with capital support for machinery, technology upgradation, and common testing and certification centres. Three, the National Handloom and Handicraft Programme to integrate and strengthen existing schemes and ensure targeted support for weavers and artisans."

VIDEO | Union Budget 2026–27: Finance Minister Nirmala Sitharaman says,"For the labour-intensive textile sector, I propose an integrated programme with five sub-parts. One, the National Fibre Scheme for self-reliance in natural fibres such as silk, wool and jute, man-made fibres,… pic.twitter.com/21c9cVBsdo

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She added, "Four, the Text-ECON initiative to promote globally competitive and sustainable textiles and apparel. Five, SAMARTH 2.0 to modernise and upgrade the textile skilling ecosystem through collaboration with industry and academic institutions. 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 our weavers, village industries, the One District, One Product (ODOP) initiative, and our rural youth."