India has witnessed a flurry of impactful policy decisions and scheme implementations over the last few days, signaling the government's commitment to broad-based development across various sectors. These initiatives span economic stabilization, social welfare, technological innovation, and governance reforms.

Economic & Monetary Policy

The Reserve Bank of India (RBI) made a significant move in its Monetary Policy Committee (MPC) meeting on December 5, 2025, by unanimously deciding to reduce the policy repo rate by 25 basis points (bps) to 5.25% with immediate effect. This decision was influenced by India's accelerated real Gross Domestic Product (GDP) growth, which reached 8.2% in the second quarter, and a notable reduction in average headline inflation to 1.7%, falling below the RBI's lower tolerance threshold of 2%. The MPC also revised India's real GDP growth projection for 2025-26 upwards to 7.3%, an increase from the earlier 6.8%. This rate cut is expected to support economic activity and maintain a benign inflation outlook.

Social Welfare & Financial Inclusion

In a landmark decision on December 7, 2025, the government approved a substantial hike in the minimum monthly pension under the Employees' Pension Scheme (EPS-95) from ₹1,000 to ₹7,500. This long-awaited upgrade is set to provide significant financial relief to lakhs of retired employees across India and is accompanied by the launch of a Centralized Pension Payment System (CPPS) and phased payment of arrears. Additionally, the Post Office DBT Scheme 2025, highlighted on December 7, aims to streamline the direct transfer of government benefits to bank accounts, promoting financial inclusion, especially in rural areas, by eliminating delays and intermediaries. There are also ongoing discussions about potentially raising the retirement age for central government employees from 60 to 62 years, a move that could impact crores of workers by extending service and enhancing pension security.

Science, Technology & Innovation

The Union government has launched an ambitious ₹1 lakh crore Research, Development and Innovation (RDI) Fund to deepen private sector involvement in research and technology development. Announced on December 7, this fund will prioritize near-commercial technologies in critical sectors such as Artificial Intelligence (AI), biotechnology, clean energy, and deep-tech manufacturing. Concurrently, the Delhi government initiated the "Delhi AI Grind" on December 7, a six-month program aimed at empowering students, schools, and communities with AI knowledge and skills, with the goal of establishing Delhi as a hub for AI innovation. Furthermore, the government is accelerating reforms in the forensic sector through the National Forensic Infrastructure Enhancement Scheme, approved in 2024 with a financial outlay of ₹2254.43 crore. This scheme, highlighted on December 7, aims to modernize forensic services, expand infrastructure, and enhance manpower for improved criminal justice delivery.

Governance & Economic Reforms

The Indian Parliament has been actively pursuing a robust economic agenda. On December 4, 2025, the Central Excise (Amendment) Bill, 2025, and the Health and National Security Cess Bill were passed in the Lok Sabha. These legislations aim to raise duties on tobacco, cigarettes, and pan masala, replacing the expiring GST compensation cess with a permanent excise-plus-cess framework. This move is designed to ensure stable government revenue and discourage the consumption of harmful products.

Energy & Environment

India continues its push towards clean energy, with the PM Surya Ghar Muft Bijli Yojana showing significant progress. As of December 2025, nearly 24 lakh households have adopted rooftop solar under this scheme, contributing to India's surging solar capacity of 129 GW. Prime Minister Narendra Modi, speaking at the Hindustan Times Leadership Summit on December 7, reiterated India's role as a key growth engine for the global economy and emphasized the nation's efforts towards technological self-reliance, particularly in areas like solar power.

Cooperative Sector Expansion

Union Home and Cooperation Minister Amit Shah, on December 6, announced upcoming initiatives such as Cooperative Taxi, Cooperative Insurance, and the 'Cooperation Among Cooperatives' project. These efforts are part of a broader strategy to expand the cooperative sector's scope and strengthen rural economies, aiming to increase its contribution to the nation's GDP. The potential of a circular economy model in the dairy sector was also highlighted, with examples like Banas Dairy's bio-CNG and fertiliser plant aiming to boost farmers' income.