To be directed by Sharat Katariya and written by Maneesh Sharma, the film will go on the floors from January next year.
"From Gandhiji to Modiji, our country's leaders have always endorsed the mantra of Made in India. With ‘Sui Dhaaga', I am proud to take their message to millions of movie lovers in a manner that is entertaining and relevant," Varun said in a statement.
"I really liked the script Sharat had written and I am happy that I am teaming up with YRF on this movie. Anushka and I are teaming up for the first time so I am sure there will be fireworks," he added.
Anushka believes the story of "Sui Dhaaga" will connect with "grassroots levels"
"I always get excited with unique ideas that have human interest stories. This is a story I believe will connect with every Indian. I am really looking forward to working with Varun Dhawan and the team of Maneesh Sharma and Sharat Katariya," Anushka said.
According to writer Maneesh Sharma, this is a story of "pride and self-reliance."
"This story finds its roots in the heart of India and reflects the passion that runs through the veins of every single Indian. ‘Sui Dhaaga' is a story that will resonate with all of us, and with Varun and Anushka I think we've found just the right vehicles to tell it," Maneesh said.
The film will hit the screens for Gandhi Jayanti 2018.