India Unveils Key Economic and Social Policy Reforms: RBI Cuts Repo Rate, Pension and Gratuity Rules Revised, and New Initiatives for Youth and Cooperative Sector

December 07, 2025

In a series of significant announcements over the past 24-48 hours, India has introduced major policy changes and schemes aimed at bolstering economic growth, enhancing social welfare, and promoting specific sectors. The Reserve Bank of India (RBI) reduced the repo rate to 5.25% amidst strong economic performance and low inflation. Simultaneously, the government approved a substantial hike in the minimum pension under the EPS-95 scheme and revised gratuity rules to benefit a wider range of workers. New initiatives were also launched for youth employment and skill development, as well as for strengthening the cooperative sector and boosting exports.