New Delhi | February 2, 2026 | SKY LINK TIMES
Budget 2026 Launches Mahatma Gandhi Gram Swaraj Scheme:
Days after facing criticism over renaming the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), the Union government on Saturday announced a new initiative bearing Mahatma Gandhi’s name in the Union Budget 2026.
Finance Minister Nirmala Sitharaman unveiled the Mahatma Gandhi Gram Swaraj Initiative, aimed at strengthening khadi, handloom and handicrafts through global market linkages, branding, skilling, training and quality enhancement.
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Focus on Rural Industries and Artisans
According to the Budget announcement, the Gram Swaraj Initiative is designed to boost rural industries, support artisans and youth, and improve access to international markets for traditional Indian products.
The initiative forms part of a broader government plan to revive 200 legacy industrial clusters, signalling a large-scale push towards rural economic revitalisation and self-reliance.
Push for Sports Goods Manufacturing
Alongside the Gram Swaraj Initiative, Sitharaman also announced a dedicated programme for sports goods manufacturing, focusing on innovation in equipment design and material sciences.
The goal is to produce high-quality and affordable sports equipment, strengthening India’s manufacturing ecosystem while creating new employment opportunities.
Background: MNREGA Renaming Sparks Political Storm
The announcement comes shortly after the Centre enacted the Viksit Bharat–Guarantee for Rozgar and Ajeevika Mission (Gramin) [VB-G RAM G] Act, 2025, which replaced the Congress-era MGNREGA, enacted in 2005.
The move drew sharp criticism from opposition parties, who accused the BJP-led NDA government of being “allergic” to Mahatma Gandhi’s name.
The government, however, has maintained that the VB-G RAM G Act represents a comprehensive statutory overhaul, aligning rural employment schemes with the long-term vision of Viksit Bharat 2047, while strengthening accountability, infrastructure outcomes and income security.
Also Read:https://skylinktimes.in/budget-2026/
Shashi Tharoor Questions Budget Priorities
Congress MP Shashi Tharoor criticised the Budget, stating that welfare measures lacked clarity, except for the reference to the Mahatma Gandhi Gram Swaraj Initiative.
“What is interesting is that they took away Mahatma Gandhi’s name from the Rural Employment Guarantee Scheme and applied it to another alleged village development scheme,” Tharoor said, adding that details on allocations and implementation were awaited.
He also questioned the absence of clarity on funding for the VB-G RAM G Act and expressed disappointment over the lack of measures for the middle and lower-middle classes.
Tharoor further remarked on the absence of references to Thiruvalluvar in the Budget speech, calling it surprising given upcoming elections in Tamil Nadu.
Awaiting Budget Fine Print
Analysts note that many concerns raised by the opposition may only be addressed once the full Budget documents and allocations are examined, particularly regarding financing of rural employment guarantees.
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