In a series of impactful policy decisions, the Indian government has initiated major reforms and introduced new schemes across various sectors, signaling a dynamic approach to national development and social welfare.
Social Welfare and Employment
A significant revamp of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) is underway. The Union Cabinet has approved a Bill to rename the scheme to "Pujya Bapu Gramin Rozgar Yojana" and increase the guaranteed employment days for eligible rural households from 100 to 125 days annually. This move aims to strengthen rural livelihoods and improve income stability, with the minimum daily wage also revised upwards to ā¹240. The Supreme Court has also extended the ā¹50 Lakh Pradhan Mantri Garib Kalyan Package (PMGKP) insurance to all doctors who died due to COVID-19.
Further bolstering social security, the Terms of Reference for the 8th Pay Commission were officially notified in November 2025, impacting approximately 50.14 lakh central government employees and nearly 69 lakh pensioners. The 2025 Senior Citizens Scheme has also seen updates, introducing enhanced financial support, improved healthcare systems, robust social security frameworks, transportation fare reductions, and better interest rates for senior savers. The Unified Pension Scheme (UPS) for Central Government employees has been implemented, with the enrollment deadline having passed on November 30, 2025.
Economic Reforms and Industrial Development
India's economic landscape is undergoing substantial transformation. The Reserve Bank of India (RBI) reduced the repo rate by 25 basis points to 5.25% in its December 2025 monetary policy meeting, maintaining a neutral stance. This reduction aims to make borrowing cheaper, stimulate spending and investment, and support economic growth across key sectors.
The Department for Promotion of Industry and Internal Trade (DPIIT) released its 2025 Year-End Review, highlighting strong economic momentum. Key achievements include significant progress in Production Linked Incentive (PLI) schemes, with over ā¹1.88 lakh crore in investments and 12.3 lakh direct and indirect jobs created. The Startup India initiative has recognized over 2 lakh startups, creating more than 21 lakh jobs, with women-led entrepreneurship showing remarkable growth. India's foreign direct investment (FDI) inflow reached USD 1.1 trillion since April 2000, with annual inflows more than doubling over the past decade.
The Department of Commerce's 2025 Year-End Review showcased India's best-ever first-half export performance for FY 2025-26, with total exports (merchandise and services) reaching US$ 418.91 billion. Reforms in SEZ rules and efforts to ease GST compliance for MSMEs were also noted.
In the energy sector, the Union Cabinet approved the 'CoalSETU' policy, a new window for long-term coal linkage auctions for industrial use and exports, aiming to simplify procedures, boost coal usage, and reduce import dependence. The Atomic Energy Bill, 2025, also known as the SHANTI Bill, received Cabinet approval, opening India's civil nuclear sector to private participation to accelerate clean energy capacity.
Governance and International Relations
The Union Cabinet approved a Free Trade Agreement (FTA), or Comprehensive Economic Partnership Agreement (CEPA), with Oman. This agreement is expected to deepen economic ties and boost trade, coinciding with Prime Minister Narendra Modi's upcoming visit to Oman.
In the cultural domain, the National Film Heritage Mission (NFHM) is expanding its efforts to preserve India's cinematic legacy through digitizing and restoring old and endangered films. So far, 1,469 film titles, amounting to nearly 4.3 lakh minutes of content, have been digitized.
Other significant developments include the establishment of the National Makhana Board, with a ā¹476.03 crore Central Sector Scheme rolled out for holistic makhana development. Additionally, the Vidyanjali initiative continues to strengthen schools by fostering community and private sector involvement across the country.