Politics and Governance
On December 4, 2025, the Indian Parliament approved the Central Excise (Amendment) Bill, 2025, which will impose a higher excise duty on tobacco and related products once the GST compensation cess concludes. Concurrently, the Health Security se National Security Cess Bill, 2025, was introduced to bolster funding for both health and national security. The Law Commission also briefed a joint parliamentary committee, clarifying that a constitutional amendment bill for simultaneous polls would not require ratification by state legislatures. Meanwhile, political discourse saw Leader of the Opposition Rahul Gandhi criticize the government's stance on the caste census.
Economy and Finance
The Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) is holding its final meeting of 2025, with the outcome expected on December 5. Experts are divided on whether the RBI will implement a rate cut, with many anticipating a status quo decision given India's robust GDP growth and easing inflation. Separately, a proposal to merge pay scales for government employees in 2025 is gaining traction, potentially leading to substantial salary hikes and a more streamlined, equitable pay structure for various roles.
Science, Technology, and Environment
A significant step towards environmental sustainability was taken with the launch of the R&D Roadmap to Enable India's Net Zero Targets through Carbon Capture, Utilization and Storage (CCUS) on December 2, 2025. Prepared by the Department of Science and Technology (DST), this roadmap aims to guide coordinated action and collaboration on climate solutions. Dr. Jitendra Singh, Union Minister, highlighted the ā¹1 Lakh Crore Research, Development & Innovation (RDI) Scheme Fund as a pioneering initiative designed to support high-risk, high-reward research in frontier technologies and foster partnerships between government, industry, and investors. India's nuclear program is also expanding its peaceful applications, particularly in healthcare, agriculture, and water purification, with the government opening the sector to private participation through Public-Private Partnership (PPP) models. Additionally, the PM-WANI network has expanded significantly, deploying over 3.9 lakh Wi-Fi hotspots across India by November 2025, enhancing affordable broadband access.
Social Welfare and Labour Reforms
New Labour Codes, implemented since late November, are set to enhance workers' livelihoods by introducing comprehensive wage protection, workplace safety measures, and social security benefits. These reforms aim to simplify India's complex labor laws, reduce bureaucratic hurdles, and extend welfare provisions to unorganized workers. The Department of Social Justice and Empowerment updated various schemes on December 1, 2025, including scholarships for Other Backward Classes (OBCs) and other categories (SHREYAS, PM-YASASVI), and the Support for Marginalized Individuals for Livelihood and Enterprise (SMILE) initiative. The Self Employment Scheme for Rehabilitation of Manual Scavengers also saw updates on December 4, 2025.
International Relations
India hosted the 13th India-Netherlands Foreign Office Consultations in New Delhi on December 4, 2025. Discussions focused on strengthening cooperation in critical technologies, innovation, green hydrogen, defense, and security, with both sides also emphasizing the importance of concluding the India-EU Free Trade Agreement by the end of the year. In a significant diplomatic event, Russian President Vladimir Putin is scheduled to arrive in India on December 4, 2025, with a primary objective of safeguarding India-Russia ties amid pressures from the United States. Meanwhile, India's relationship with the US has seen some challenges under a second Donald Trump presidency, marked by increased tariffs and restrictions on H-1B visas.