NEW DELHI: In a significant development, the Union Budget 2026 has announced the launch of the Mahatma Gandhi Gram Swaraj Initiative, a comprehensive program designed to strengthen and promote India's traditional rural industries. This announcement comes just days after the government faced criticism for its decision to rename the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) to the Viksit Bharat Guarantee for Employment and Livelihood Mission (Rural) Bill, commonly referred to as the VB-G RAM G Act, 2025.
Focus on Rural Industries and Global Market Linkage
The newly introduced Mahatma Gandhi Gram Swaraj Initiative aims to revitalize key sectors such as khadi, handloom, and handicrafts through a multi-pronged approach. The initiative will focus on enhancing global market linkages, improving branding strategies, providing extensive training and skilling programs, and implementing quality improvement measures. This move is expected to empower artisans and boost rural economies by creating sustainable livelihood opportunities.
Additional Measures for Sports Goods Manufacturing
Finance Minister Nirmala Sitharaman, while presenting the Budget, also announced a dedicated initiative for sports goods manufacturing. This program will emphasize innovation in equipment design and advancements in material sciences to produce high-quality, affordable sports goods. These measures collectively aim to support youth engagement and foster entrepreneurship in rural and semi-urban areas.
Context of MNREGA Renaming and Political Reactions
The Budget announcement follows the recent enactment of the Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) Act, 2025, which replaced the Congress-era MGNREGA. The renaming decision drew sharp criticism from opposition parties, who alleged that the BJP-led NDA government was deliberately distancing itself from Mahatma Gandhi's legacy. 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 for beneficiaries.
Broader Economic Revitalisation Plans
The Union Budget 2026 also outlines a broader plan to revive 200 legacy industrial clusters across the country, underscoring the government's commitment to large-scale economic revitalisation. These initiatives, including the Mahatma Gandhi Gram Swaraj Initiative and the sports goods manufacturing program, are strategically designed to enhance India's global competitiveness, support traditional artisans, and create employment opportunities in rural and manufacturing sectors.
The capital expenditure target for FY27 has been set at Rs 12.2 lakh crore, reflecting the government's focus on infrastructure development and economic growth. While the Budget addresses various sectors, the introduction of the Mahatma Gandhi Gram Swaraj Initiative amidst the MNREGA renaming controversy highlights the ongoing political and economic narratives shaping India's policy landscape.
