In a series of impactful announcements, the Indian government has initiated several significant policy and legislative reforms across crucial sectors, reflecting a concerted effort towards modernization and inclusive growth. These developments, primarily from December 15th and 16th, 2025, are set to reshape India's social, economic, and energy landscapes.

Social Welfare and Rural Development

• MGNREGA to be Replaced by VB-G RAM G Bill: The Narendra Modi-led government has announced the replacement of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) with a new program, the Viksit Bharat—Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) Bill, 2025. This new legislation aims to provide a statutory guarantee of 125 days of wage employment each financial year to every rural household willing to undertake unskilled manual work, an increase from the current 100 days. The program emphasizes empowerment, economic growth, convergence, and resilience in rural India, aligning with the national vision of Viksit Bharat 2047. Under VB-G RAM G, public works will focus on water security, core rural infrastructure, livelihood-related infrastructure, and initiatives to mitigate extreme weather events. The scheme will involve higher spending by state governments and operate as a Centrally Sponsored Scheme, with fund-sharing ratios of 90:10 for North Eastern and Himalayan states and select Union Territories, and 60:40 for all other states. Significantly, the bill restricts projects during peak agricultural seasons to ensure labor availability for farming and introduces a daily unemployment allowance if employment is not provided within 15 days. The proposed legislation has sparked political debate regarding the removal of Mahatma Gandhi's name from the scheme.
• Udyam Portal and Vishwakarma Scheme Boost Employment: Micro, Small and Medium Enterprises Minister Jitan Ram Manjhi stated that over seven crore MSMEs have registered on the Udyam portal, generating employment for approximately 31 crore people across the country. Additionally, the Vishwakarma Scheme has benefited 12 lakh artisans, with a target to reach around 30 lakh artisan families by the end of 2028.

Energy and Infrastructure

• Civil Nuclear Sector Opens to Private Players: The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025, has been introduced in the Lok Sabha. This bill aims to open India's civil nuclear sector to private participation, seeking to attract global investment, accelerate technology transfer, and expand clean energy capacity. The SHANTI Bill will repeal and replace the Atomic Energy Act, 1962, and the Civil Liability for Nuclear Damage Act, 2010, establishing a new legal framework for the sector.
• Energy Conservation Initiatives and Carbon Credit Trading: India's energy policy is undergoing significant shifts to align with clean energy goals. In December 2025, the government transitioned several major energy-intensive sectors from the Perform, Achieve and Trade (PAT) mechanism to the Carbon Credit Trading Scheme (CCTS) Compliance Mechanism for industrial decarbonization. The Pradhan Mantri Surya Ghar Muft Bijli Yojana, launched in February 2024, has equipped over 23.9 lakh homes with rooftop solar systems by December 2025, contributing 7 GW of clean energy. The Revamped Distribution Sector Scheme (RDSS) has also led to the installation of 4.76 crore smart electricity meters.

Education Reforms

• Unified Regulator for Higher Education: The Union government has tabled the Viksit Bharat Shiksha Adhishthan Bill, 2025, in the Lok Sabha. This bill proposes a fundamental restructuring of India's higher education regulatory framework by subsuming existing bodies like the University Grants Commission (UGC), All India Council for Technical Education (AICTE), and National Council for Teacher Education (NCTE) into a single overarching authority. The aim is to grant universities greater autonomy, encourage international collaboration, and promote digital learning platforms.

Economic and Business Reforms

• Startup India Initiative Strengthens Ecosystem: The government is reinforcing the startup ecosystem through three flagship schemes under the Startup India initiative: the Fund of Funds for Startups (FFS), the Startup India Seed Fund Scheme (SISFS), and the Credit Guarantee Scheme for Startups (CGSS). These schemes aim to improve access to finance and support innovation-led enterprises, with a particular focus on women-led ventures.
• Production Linked Incentive (PLI) Scheme Bolsters Manufacturing: The Production Linked Incentive (PLI) scheme continues to be a key policy instrument, strengthening India's manufacturing base and enhancing export competitiveness across strategic sectors like electronics, pharmaceuticals, and automobiles. The scheme provides performance-based financial incentives to encourage large-scale manufacturing, attract global investment, and reduce import dependence.
• Insurance Sector Liberalization: The Union Cabinet has approved the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill, 2025, seeking to revamp India's insurance framework for modernization, wider coverage, and stronger regulatory oversight. The FDI cap in insurance has also been raised to 100%, fully opening the sector to foreign investment.
• Taxation and Economic Policy Updates: The government has introduced a new taxation framework for sin goods (tobacco, pan masala) to target public health and raise revenue, replacing the expiring GST compensation cess with a permanent excise-plus-cess framework. Amendments to corporate law have decriminalized minor business offenses and streamlined compliance, fostering entrepreneurship. India's economic resilience is further supported by a structural shift in capital markets, where domestic savings are increasingly replacing foreign institutional investors, reducing dependence on volatile global capital.