Finance Minister Nirmala Sitharaman is presenting the Union Budget 2026 in Parliament today, February 1, 2026, marking a historic first for India. Never before has the country’s annual Budget been tabled on a Sunday.
With this address, Sitharaman also creates another record, this is her ninth consecutive Budget, the highest number presented by any finance minister in India’s history. The moment underscores both continuity in economic policymaking and the weight of expectations surrounding this year’s announcements.
Budget 2026 Live: Focus on Textiles, Tradition, and Jobs
In her Budget speech, the Finance Minister placed strong emphasis on India’s labour-intensive textile sector, traditional industries, and rural livelihoods. A series of interconnected initiatives were announced to modernize production, strengthen global competitiveness, and generate employment.
At the heart of these proposals lies a renewed push to blend heritage crafts with modern supply chains, a move aimed at empowering artisans while positioning India as a global manufacturing hub.
Mahatma Gandhi Gram Swaraj Initiative Announced
One of the key highlights of Budget 2026 is the launch of the Mahatma Gandhi Gram Swaraj Initiative, designed to strengthen khadi, handloom, and handicrafts.
The initiative aims to:
- Improve global market access and branding
- Streamline training, skilling, and production processes
- Enhance quality standards across traditional sectors
According to the Finance Minister, this programme will directly benefit weavers, village industries, rural youth, and initiatives such as One District, One Product (ODOP).
Integrated Programme for the Labour-Intensive Textile Sector
To support one of India’s largest employment-generating sectors, Sitharaman announced a comprehensive integrated programme with multiple components:
National Fibre Scheme for Self-Reliance
A major pillar of the plan is the National Fibre Scheme for Self-Reliance, with a budgetary allocation of ₹10,000 crore over five years. The scheme will cover:
- Natural fibres such as silk, wool, and jute
- Man-made fibres
- New-age fibres
The objective is to reduce dependence on imports while boosting domestic capacity across the fibre value chain.
Textile Expansion and Employment Scheme
To modernize traditional textile clusters, the government will roll out a Textile Expansion and Employment Scheme. This will provide:
- Capital support for modern machinery
- Technology upgradation
- Common facilities such as testing and certification centres
The move is expected to strengthen cluster-based manufacturing and create sustainable jobs.
Strengthening Handlooms and Handicrafts
The Budget also proposes a National Handloom and Handicraft Programme, which will integrate existing schemes and ensure targeted support for artisans and weavers. The focus remains on improving incomes while preserving India’s rich textile heritage.
Tex-Eco Initiative for Sustainable Global Textiles
With sustainability gaining prominence worldwide, Sitharaman introduced the Tex-Eco initiative. This programme aims to promote globally competitive, environmentally sustainable textiles and apparel, aligning Indian manufacturing with evolving international standards.
Samarth 2.0: Upgrading Textile Skills
To address skill gaps, the Finance Minister announced Samarth 2.0, an upgraded version of the textile skilling programme. It will focus on:
- Modernizing training infrastructure
- Collaborating with industry and academic institutions
- Preparing the workforce for new technologies and processes
Mega Textile Parks in Challenge Mode
Further strengthening the sector, the government plans to set up mega textile parks in challenge mode. These parks will also focus on value addition in technical textiles, enhancing India’s manufacturing depth.
Wrapping up her announcements on the sector, Sitharaman said India has the potential to emerge as a global hub for high-quality, affordable products, while simultaneously supporting rural economies and traditional skills.
