The Winter Session of the Indian Parliament commenced on December 1, 2025, with the government outlining an ambitious legislative agenda focused on key economic reforms. Nine crucial economic bills are slated for introduction and discussion during the session, which is scheduled to run until December 19.
Key Legislative Proposals:
- Insurance Sector Liberalization: The Insurance Laws (Amendment) Bill, 2025, seeks to increase the Foreign Direct Investment (FDI) cap in the insurance sector from the current 74% to 100%. This move is part of a broader effort to modernize financial sector regulation and attract global capital.
- New Taxation on 'Sin Goods': Two significant tax-related proposals, The Central Excise (Amendment) Bill, 2025, and The Health Security se National Security Cess Bill, 2025, will be introduced. These bills aim to levy excise duty and a new cess on tobacco and pan masala products, replacing the existing GST compensation cess. The revenue generated from this new cess is intended for national security and public health expenditures.
- Unified Securities Markets Code: The Securities Markets Code Bill (SMC), 2025, is designed to consolidate three separate laws governing India's capital markets into a single, streamlined code. This is expected to enhance ease of doing business and simplify compliance.
- Private Participation in Nuclear Energy: The Atomic Energy Bill, 2025, aims to open the civil nuclear sector to private investment, a strategic move to boost non-fossil fuel energy generation.
- Higher Education Regulation: A Higher Education Commission of India Bill is also on the agenda to establish an autonomous regulator for the sector.
- Ease of Doing Business: Amendments to corporate and LLP laws, including the Corporate Laws (Amendment) Bill, 2025, are aimed at further facilitating ease of doing business in the country.
The opposition parties are expected to raise concerns over issues such as the Special Intensive Revision (SIR) of electoral rolls and air pollution, setting the stage for a potentially contentious session.
RBI's Monetary Policy Committee Faces Key Decision
Meanwhile, the Reserve Bank of India's Monetary Policy Committee (MPC) is facing a critical decision regarding interest rates. A recent poll of economists shows a divided outlook, with some anticipating a 25 basis point rate cut, while others expect the central bank to maintain the current policy rate. This dilemma arises from a unique economic scenario of robust growth, which reached an impressive 8.2% in Q2 of 2025-26, coupled with low inflation. The RBI has maintained a pause on rate changes since August, after cutting the rate by 100 basis points since February.
Advancement of 5th National Science, Technology and Innovation Policy
In the realm of science and technology, the Government of India is actively working on the formulation and launch of its 5th National Science, Technology and Innovation Policy (STIP). This holistic policy aims to reorient the nation's Science, Technology & Innovation (STI) ecosystem by focusing on new priorities, sectoral strategies, and a pragmatic approach. The policy is a joint initiative of the Office of the Principal Scientific Adviser and the Department of Science and Technology, with its development involving extensive consultations.