New Delhi, February 1: The Union Budget 2026 announced the launch of the Mahatma Gandhi Gram Swaraj Initiative, days after the Centre faced criticism over replacing MGNREGA with the Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) or VB-GRAMG Act, 2025.

Presented by Finance Minister Nirmala Sitharaman, the new initiative is aimed at strengthening khadi, handloom and handicrafts through global market linkage, branding, training, skilling and quality enhancement. The programme draws inspiration from the philosophy of Mahatma Gandhi, focusing on Gram Swaraj or village-level self-reliance. New Income Tax Slabs and Rates for FY 2026-27: How Budget Affects Your Take-Home Salary.

The Budget also announced a dedicated push for sports goods manufacturing, with emphasis on innovation in equipment design and material sciences to produce high-quality and affordable products. Together, these measures seek to boost rural industries, support artisans and youth, and improve India’s global market presence. Budget 2026 Highlights: Motor Accident Compensation Interest Exempted From Income Tax.

The announcements come against the backdrop of opposition criticism alleging the government’s reluctance to retain Mahatma Gandhi’s name after the enactment of the VB-G RAM G Act, which replaced the Mahatma Gandhi National Rural Employment Guarantee Act, 2005. The government maintains that the new law aligns rural employment with the long-term vision of Viksit Bharat 2047, while improving accountability, infrastructure creation and income security.

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