Finance Minister Nirmala Sitharaman announced a new scheme named after Mahatma Gandhi in the Union Budget 2026 in Parliament on Sunday, amid debate over the government’s recent scrapping of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA).
Union Finance Minister Nirmala Sitharaman in Parliament to present Union Budget 2026 in New Delhi on Sunday. (Photo by Rahul Singh/ANI)Sita Raman Announced the launch ‘Mahatma Gandhi Gram Swaraj’ as a handloom scheme and emphasized that the government wanted reforms in the textile industry especially in the khadi, handloom and handloom sectors.
It’s only been a few weeks MGNREGA-based employment scheme It was replaced by the BJP-led NDA government with a new scheme, under the Vixit Bharat-Guarantee for Income and Livelihood Mission (Rural) Act, or simply VB-G RAM G. Name of Lord Rama.
Other schemes and places continue to be named after Mahatma Gandhi, but MGNREGA was seen as a marquee scheme, the cancellation of which drew serious criticism against Prime Minister Narendra Modi’s regime.
What is controversial about canceling MGNREGA?The withdrawal of MGNREGA sparked large-scale protests by the opposition led by the Congress, which in 2005 came up with a landmark project that was backed by a rare consensus in Parliament by the then-opposition BJP.
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The debate centers not only on the potential harm of losing a legal “right to work” for millions of rural families, but also on its symbolic removal. Name of Mahatma Gandhi From the flagship scheme.
Opposition leaders have accused him of systematically dismantling the social safety net that has sustained the rural economy for nearly two decades, as well as trying to erase the legacy of the ‘Father of the Nation’.
The government, however, maintained that VB G-RAM-G The scheme aims to be more efficient, and focus on “resource-linked employment” rather than “digging holes”.
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Congress MP Rahul Gandhi, Leader of the Opposition in the Lok Sabha, framed the NDA’s move as a direct attack on the poor and the country’s fundamental values.
“By erasing Mahatma Gandhi’s name, you cannot erase his ideas; but by killing MGNREGA, you are taking away bread from the mouths of the poorest Indians,” he said at a rally in Delhi. The party is now holding ‘Save MGNERGA’ rallies across the state.
What the new loom project entailsSitharaman, announcing the textile project named after Mahatma Gandhi, gave some details: “I propose to set up mega textile park in challenge mode. I propose to launch Mahatma Gandhi Gram Swaraj initiative to strengthen khadi and looms,” Sitharaman said. During British colonial rule, Gandhi popularized khadi as Swaraj (self-rule) and Swadeshi (indigenous).
“Challenge mode” generally refers to a competitive selection process where entities such as states, cities, or agencies can submit proposals to win funding for specific projects.
The initiative announced by Sitharaman aims to provide global market connectivity and branding support, streamlining training, skills and manufacturing quality.
According to his speech it is expected to benefit weavers, rural industries, One District One Product (ODOP) program and rural youth.
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The focus on textiles includes offering an integrated program with five core components.
The first of these elements is a National Fiber Scheme, which aims to achieve self-sufficiency in natural fibers such as silk, wool and jute as well as man-made and new industrial-age fibres.
The second is a textile expansion and employment project, modernizing traditional clusters by providing capital support.
The third is a National Handlooms and Handicrafts Program designed to consolidate and strengthen existing schemes while ensuring targeted support to weavers and artisans.
Focus of Union Budget 2026-27Sitharaman created history by presenting his ninth straight Union Budget in Parliament, asserting that the Narendra Modi-led National Democratic Alliance (NDA) government’s “reform express” is on its way and will maintain momentum in fulfilling its mandate.
“Our government has decisively and consistently chosen to act against ambivalence, and we have pursued far-reaching structural reforms, fiscal prudence and fiscal stability while maintaining a strong emphasis on public investment,” Sitharaman added.
Referring to global challenges, Sitharaman said India is facing an external environment where trade and multilateralism are under pressure.
He asserted that India would continue to take confident steps towards a ‘Developed India’, balancing ambition with inclusion.
