India is actively pursuing a multi-faceted agenda of economic growth and social welfare, marked by several crucial government decisions and policy elaborations over the past day. These initiatives span critical sectors such as manufacturing, trade, labour, and infrastructure, aiming to enhance the nation's global competitiveness and internal development.
Rare Earth Magnet Manufacturing Boost
The Union Cabinet, chaired by Prime Minister Narendra Modi, approved a "first-of-its-kind" financial outlay of ₹7,280 crore to promote the manufacturing of rare earth permanent magnets (REPM) in India. This scheme aims to establish 6,000 metric tonnes per annum (MTPA) of integrated REPM manufacturing facilities. Rare earth permanent magnets are crucial components for electric vehicles, renewable energy systems, electronics, aerospace, and defence applications. The initiative is designed to foster self-reliance, reduce India's current import dependency for REPMs, and position the country as a significant player in the global market. The scheme will provide sales-linked incentives of ₹6,450 crore over five years and a capital subsidy of ₹750 crore for setting up manufacturing units. This move aligns with the 'Atmanirbhar Bharat Abhiyan' and India's commitment to achieving Net Zero by 2070.
Interest Equalisation Scheme for Exporters
In a move to bolster its export sector, the government is set to provide 2.5-3% subsidy benefits under the Interest Equalisation Scheme for exporters in specific sectors on pre- and post-shipment credit. This initiative is part of the ₹25,060 crore Export Promotion Mission, which was approved by the Union Cabinet on November 12. The scheme aims to make Indian export credit more competitive globally, especially at a time when global trade faces significant headwinds. The annual benefit for each exporter is expected to be capped at ₹50 lakh. Detailed guidelines for the scheme are anticipated to be released next week.
New Labour Codes Come into Effect
Four new Labour Codes, which became effective on November 21, 2025, are now being widely discussed for their significant impact on India's labour landscape. These codes replace 29 central labour laws, aiming to modernize labour regulation, strengthen social security, and improve the ease of doing business. Key changes include a revised definition of wages, modifications to employee and worker classification, and new provisions concerning working hours, overtime, and leave encashment. Notably, the Social Security Code formally recognizes gig and platform workers for the first time, extending social security coverage to them. For employers, the new codes are expected to simplify compliance, while for employees, there are changes in take-home pay due to increased PF contributions, and benefits like gratuity after one year for fixed-term workers.
Infrastructure Development and Water Management
The Cabinet has also given its nod to the Pune Metro Rail Project Phase-2, which includes Line 4 (Kharadi-Hadapsar-Swargate-Khadakwasla) and Line 4A (Nal Stop-Warje-Manik Baug). This project, with an estimated cost of around ₹9,857 crore, is expected to be completed within five years and will significantly expand Pune's metro network. Additionally, two projects under the Ministry of Railways, totaling ₹2,781 crore, have been approved: the Devbhumi Dwarka (Okha) – Kanalus rail line and the Badlapur – Karjat third and fourth line project. These railway projects will add approximately 224 kilometers to the existing network across Gujarat and Maharashtra.
Looking ahead, the Ministry of Jal Shakti is set to host the “Vision for Sujalam Bharat” Summit 2025 on November 28-29, 2025, in New Delhi. Union Minister of Jal Shakti, Shri CR Paatil, will inaugurate the summit, which aims to set a roadmap for a water-secure and climate-resilient India. The summit will address critical themes such as river rejuvenation, greywater management, and technology for efficient water management.