Finance Minister Nirmala Sitharaman announced the 'Mahatma Gandhi Gram Swaraj Initiative' on February 1, 2026, during the Union Budget 2026-27. This new scheme aims to strengthen the production and manufacturing of khadi and handicrafts across India. "This will benefit our weavers and our youth," said Ms. Sitharaman. The announcement comes just after the country marked Mahatma Gandhi's death anniversary on January 30. In 2025, the Khadi and Village Industries Commission (KVIC) reported a record turnover of ₹1.70 lakh crore and has set a target of ₹2 lakh crore for 2025–26. Additionally, the Sixteenth Finance Commission report for 2026-31 was tabled in Parliament by Ms. Sitharaman before presenting the budget. Chaired by economist Arvind Panagariya, the commission suggested the principles for Centre-State tax sharing and grants-in-aid. This budget is Ms. Sitharaman's ninth presentation in Parliament. For the first time, the budget was presented from the new Kartavya Bhavan in New Delhi, moving away from the Ministry of Finance's North Block. Prior to the budget announcement, Ms. Sitharaman met President Droupadi Murmu, who offered the traditional 'dahi-cheeni' as a customary ritual.