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October 08, 2025 Major Government Schemes and Policy Updates from India (October 7, 2025)

India witnessed a flurry of significant government announcements and policy developments on October 7, 2025, spanning skill development, critical mineral recycling, housing rights, urban redevelopment, agricultural relief, and tax reforms. Key highlights include the launch of PM-SETU for ITI transformation, a new incentive scheme for critical mineral recycling, Goa's 'Mhaje Ghar' Yojana, and a substantial flood relief package for Maharashtra farmers. These initiatives underscore the government's focus on skill enhancement, sustainable resource management, citizen welfare, and economic growth.

In a dynamic day for Indian governance, several new schemes and policy adjustments were announced or came into focus on October 7, 2025, impacting various sectors from skill development to urban planning and environmental sustainability.

PM-SETU Yojana Launched to Transform ITIs

Prime Minister Narendra Modi officially launched the Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs (PM-SETU) scheme. This centrally sponsored initiative aims to revolutionize 1,000 Government Industrial Training Institutes (ITIs) across India, transforming them into modern, industry-aligned training centers. The scheme, backed by an investment of Rs. 60,000 crore, will operate on a hub-and-spoke model, with 200 hub ITIs linked to 800 spoke ITIs. Additionally, 1,200 Vocational Skill Labs will be inaugurated in 400 Navodaya Vidyalayas and 200 Eklavya Model Residential Schools, providing hands-on training in 12 high-demand sectors to students, including those in remote and tribal areas.

Guidelines Issued for Critical Mineral Recycling Incentive Scheme

The Ministry of Mines has released detailed implementation guidelines for the Rs 15 billion Critical Mineral Recycling Incentive Scheme (CMRIS). This scheme, a vital component of the National Critical Minerals Mission, aims to foster domestic recycling capabilities for extracting critical minerals from secondary sources such as e-waste and spent lithium-ion batteries. Operating for six financial years from FY 2025–26 to FY 2030–31, CMRIS seeks to reduce India's reliance on imports for these essential resources.

Goa Introduces 'Mhaje Ghar' Yojana for Housing Rights

Union Home Minister Amit Shah launched Goa's significant 'Mhaje Ghar' (My Home) Yojana. This landmark scheme is designed to grant ownership rights to residents currently living on government and community lands, with an estimated 11 lakh people expected to benefit. The initiative aims to regularize houses under existing laws like the Goa Land Revenue Code and the Forest Rights Act.

Maharashtra Approves Slum Cluster Redevelopment Scheme

The Maharashtra cabinet has given its approval to a comprehensive slum cluster redevelopment scheme for Mumbai. This policy targets slum clusters spread over more than 50 acres, envisioning their transformation into integrated housing projects with improved living conditions and upgraded urban infrastructure. To be implemented by the Slum Rehabilitation Authority (SRA), the scheme is expected to accelerate redevelopment, attract private investment, and generate significant employment in the construction sector.

Maharashtra Announces Rs. 31,628 Crore Flood Relief Package for Farmers

In a move to support its agricultural community, the Maharashtra government announced a substantial relief package of Rs. 31,628 crore for farmers severely affected by recent heavy rainfall and floods across the state. The package includes varying compensation rates per hectare for crop damage based on land type (dry, seasonal irrigated, and fully irrigated), along with aid for animal losses and support for the upcoming Rabi season.

GST Reforms on Automobiles and Climate Goals Discussed

Recent rationalization of Goods and Services Tax (GST) rates on automobiles has restructured the tax to link it with engine displacement and vehicle length. While this reform aims to stimulate the auto industry, discussions are underway to further leverage GST by linking the tax to CO2 emissions. This move could serve as a crucial policy tool to promote the uptake of cleaner vehicles and help India achieve its net-zero emissions targets by 2070.

Jal Jeevan Mission Extension Under Consideration

The Central Government is reportedly considering an extension of the Jal Jeevan Mission, a centrally sponsored scheme, until 2028. This potential continuation, with an enhanced total outlay, follows an announcement in the Union Budget 2025-26, aiming to further ensure Functional Household Tap Connections (FHTC) to rural households.

First Cooperative Compressed Bio-Gas and Potash Granule Project Inaugurated

Union Home and Cooperation Minister Amit Shah inaugurated India's first cooperative-run Compressed Bio-Gas (CBG) and Potash Granule Project in Maharashtra. This project showcases a model circular economy and is slated for replication in 15 other cooperative sugar factories, with Maharashtra leading the initiative.

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