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December 21, 2025 India Boosts Economic Reforms, Extends Welfare Schemes, and Advances Digital Innovation

In the last 24 hours, the Indian government has accelerated significant economic reforms, including opening up the nuclear sector to private investment and allowing full foreign ownership in insurance, alongside a new free trade pact with Oman. Concurrently, major welfare initiatives like the PM SVANidhi scheme for street vendors have been extended and enhanced, while the PM-POSHAN scheme continues to deliver nutritional support. The Technology Incubation and Development of Entrepreneurs (TIDE 2.0) scheme has successfully supported over 1,700 startups, showcasing a strong push in science and technology. Amidst these developments, a political discussion arose over the renaming of a state-level employment scheme in West Bengal in response to changes in the central rural employment guarantee act.

Major Economic Reforms and Trade Expansion Underway

The Indian government has fast-tracked crucial economic reforms, pushing through bills in the recent parliamentary session aimed at bolstering the economy amidst global trade challenges. Key approvals include opening the nuclear industry to private firms and allowing full foreign ownership of insurance companies. Additionally, a proposal to unify India's securities market laws under a single code was tabled, seeking to modernize the framework and encourage greater market participation. These reforms are anticipated to unlock substantial investments, aligning with Prime Minister Narendra Modi's vision of transforming India into a developed nation within two decades.

Further strengthening its global economic ties, India has also inked a free trade pact with Oman, marking its second such agreement of the year. Commerce and Industry Minister Piyush Goyal emphasized that these policy reforms, new labor codes, digital innovations, and robust exports are collectively positioning India as a reliable global partner.

PM SVANidhi Scheme Extended and Enhanced for Street Vendors

In a significant move for urban livelihoods, the Union Cabinet has approved the restructuring and extension of the Prime Minister Street Vendor's Atma Nirbhar Nidhi (PM SVANidhi) Scheme until March 31, 2030. This expansion aims to benefit 1.15 crore street vendors, including an additional 50 lakh new beneficiaries. The scheme has notably increased loan tranches, with the first tranche now offering up to ₹15,000 (up from ₹10,000) and the second up to ₹25,000 (up from ₹20,000), while the third tranche remains at ₹50,000. To promote digital transactions, beneficiaries who repay loans on time can access UPI-linked RuPay Credit Cards and receive cashback incentives for regular sales and wholesale purchases. The initiative underscores a commitment to integrating street vendors into the formal economy and fostering an inclusive urban environment.

Successful Implementation of PM-POSHAN Scheme

The Pradhan Mantri Poshan Shakti Nirman (PM-POSHAN) scheme continues to effectively provide hot and fresh cooked meals to students up to class 8. Reports from Madhya Pradesh's Damoh district highlight the scheme's successful implementation in Anganwadi centers and government-run schools, ensuring nutritional support and enhancing school participation.

Boost for Startups through TIDE 2.0 Scheme

In the realm of Science & Technology and Economy, the Technology Incubation and Development of Entrepreneurs 2.0 (TIDE 2.0) scheme has made significant strides. Union Minister for Electronics and Information Technology Ashwini Vaishnaw announced that 1,706 startups have received support under this scheme. TIDE 2.0 provides crucial financial and technical assistance to incubators and eligible startups, offering grants up to Rs. 4 Lacs or Rs. 7 Lacs in the Entrepreneur-In-Residence category. Notably, over 70% of the supported startups are integrating Artificial Intelligence into their operations, contributing to India's burgeoning startup ecosystem.

Clarification on Ration Card Rules and Benefits

Amidst circulating claims, official updates clarified the "Ration Card New Rules 2025." The government stated that there is no nationwide scheme offering a direct ₹1 lakh benefit to all ration card holders. Similarly, the existence of a ₹1000 monthly scheme is dependent on specific state-level programs and eligibility criteria. The focus for 2025 remains on modernizing the ration card system through digital verification, Aadhaar linking, and e-KYC to ensure that benefits reach genuine beneficiaries and to eliminate duplication.

West Bengal Renames Job Scheme Amidst Central Policy Shift

The West Bengal government has officially renamed its 100-day employment scheme, 'Karmashree,' to 'Mahatmashree.' This decision comes in response to the Union Government's move to replace the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) with the Viksit Bharat-Guarantee For Rozgar And Ajeevika Mission (Gramin) (VB-G RAM G) Bill. Chief Minister Mamata Banerjee criticized the Union Government for removing Mahatma Gandhi's name from the central scheme, stating her government's intent to honor the Father of the Nation. Conversely, Union Minister Jayant Chaudhary asserted that all Indian government schemes are inspired by Mahatma Gandhi's concept of Gram Swaraj.

Emphasis on Centre-State Coordination for Urban Development

Union Minister Manohar Lal Khattar highlighted the critical need for full Centre-state coordination to achieve Prime Minister Modi's vision of a developed and self-reliant India by 2047. During a regional meeting of Urban Development Ministers, he urged states to timely utilize central budgets allocated for urban development. The discussions primarily focused on the effective implementation of schemes such as Pradhan Mantri Awas Yojana (PMAY), AMRUT Yojana, and Swachh Bharat Mission.

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