The Indian government has rolled out several key policy initiatives and schemes over the past 24-48 hours, building on the vision articulated during the recent Independence Day celebrations.
Major Announcements from the Prime Minister's Independence Day Address
Prime Minister Narendra Modi, in his Independence Day speech on August 15, 2025, made several pivotal announcements aimed at transforming India's socio-economic landscape. A fresh ₹1 lakh crore Rozgar Yojana has been unveiled, specifically targeting urban youth, university graduates, and those impacted by automation or the pandemic. This urban employment scheme seeks to address joblessness by supporting startups, vocational training, and local enterprises in over 100 major cities.
Further bolstering employment, the Pradhan Mantri Viksit Bharat Rozgar Yojana was announced, which will provide ₹15,000 to individuals securing their first private sector job post-graduation. This amount will be disbursed in two installments, contingent on continued employment and participation in a financial awareness program, aiming to support over 3.5 crore youths in the next two years.
In a significant tax overhaul, PM Modi announced the simplification of the Goods and Services Tax (GST) regime into just two tax slabs: 5% and 18%. This reform will eliminate the existing 12% and 28% slabs, aiming to ease the tax burden on a wide range of goods and services, particularly benefiting small businesses and consumers. The Prime Minister has urged states to cooperate in implementing these proposed GST reforms before Diwali. Despite these planned tax cuts, India remains confident in achieving its fiscal deficit target of 4.4% for the current fiscal year.
Other key initiatives include the creation of a High-Powered Demography Mission, designed to counter demographic imbalances in "priority regions" affected by illegal migration and infiltration. The government also pledged a tenfold increase in India's nuclear energy capacity by 2047, aligning with the "Viksit Bharat" (Developed India) vision for clean and secure energy. A new initiative for national security, Mission Sudarshan Chakra, was also announced.
MERITE Scheme to Transform Technical Education
The Union Cabinet has approved the Multidisciplinary Education and Research Improvement in Technical Education (MERITE) programme, a Central Sector scheme valued at ₹4,200 crore. This initiative will roll out between 2025-2030, covering 275 technical institutes across the country, including 175 engineering colleges and 100 polytechnic institutes. Supported by a World Bank loan of ₹2,100 crore, MERITE aims to strengthen research, innovation, and employability by introducing innovation labs, incubation centers, and research hubs, while aligning curriculum with industry needs.
PM Vishwakarma Yojana Continues to Empower Artisans
Reports from Madhya Pradesh's Damoh district highlight the positive impact of the Pradhan Mantri Vishwakarma Yojana. This central government scheme is significantly empowering artisans across various categories, including blacksmiths, potters, tailors, masons, and cobblers, by enhancing their skills and promoting self-employment. Beneficiaries receive a toolkit worth ₹15,000 and access to collateral-free loans of up to ₹3 lakh to establish their own businesses.
Infrastructure Development and Financial Inclusion
In a boost to national infrastructure, the Prime Minister inaugurated two major National Highway projects worth ₹11,000 crore. These include the Delhi section of the Dwarka Expressway and the Urban Extension Road-II (UER-II). These projects are designed to decongest the national capital, significantly improve connectivity, and reduce travel times.
Furthermore, Uttar Pradesh's banking system is experiencing positive changes due to the state government's financial inclusion policies and the linking of government schemes with banks. This has led to an expansion of the banking network into rural and semi-urban areas, resulting in increased bank deposits and loan disbursements, and an improved Credit-Deposit (CD) ratio.
Policy Developments on AI and Semiconductors
The Reserve Bank of India (RBI) released the Framework for Responsible and Ethical Enablement of Artificial Intelligence (FREE-AI) Committee Report, outlining seven guiding principles for the responsible adoption of AI in the financial sector. Concurrently, the government continues to push the India Semiconductor Mission (ISM) with schemes like the Semiconductor Fabs Scheme, Display Fabs Scheme, Compound Semiconductors & ATMP/OSAT Scheme, and the Design Linked Incentive (DLI) Scheme, all aimed at reducing import dependence and strengthening India's global semiconductor presence.