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What is Mahatma Gandhi Handloom Scheme? FM Nirmala Sitharaman pushes textile reforms in Budget

FM Nirmala Sitharaman announced the launch of the 'Mahatma Gandhi Handloom Scheme' in her Union Budget speech today, in order to strengthen the textile industry sector of India.

By Shubham Ganguly

Feb 01, 2026 12:17 IST

Finance Minister Nirmala Sitharaman announced the launch of the 'Mahatma Gandhi Handloom Scheme' to bring reforms in the textile industry of the country.

The Finance Minister said that the goal of the scheme is to strengthen the the khadi, handloom, and handicraft sectors.

What is the Mahatma Gandhi Handloom Scheme?

Nirmala Sitharaman 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."

The proposed scheme is expected to help weavers, village industries, rural youth, and the One District One Product (ODOP) programme. It also focuses on improving training, skills, and production quality.

Along with this, the initiative aims to offer branding support and link local products to global markets, making it easier for small producers to grow.

Also Read | What is Mahatma Gandhi Gram Swaraj initiative? Here's what FM Nirmala Sitharaman had to say about it in the Budget

Government support to weavers and artisans

The Finance Minister outlined an integrated programme built around five main parts. One key element is the National Handloom and Handicraft Programme. It aims to bring existing schemes together and offer focused support to weavers and artisans.

Another part is the Textile Expansion and Employment Scheme. This plan looks to modernise traditional textile clusters. It will do so by giving capital support for new machines, technology upgrades, and shared testing and certification centres.

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FM Nirmala Sitharaman also announced the launch of the Mahatma Gandhi Gram Swaraj Yojana. She said the scheme is aimed at boosting the khadi and handloom sector in rural areas, providing training and skill development for artisans, and improving production processes and quality checks

The focus, she explained, is on strengthening the rural economy by supporting traditional crafts and improving market access for these products.

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