India has taken significant strides in policy reform, with several key announcements and developments impacting various sectors. A major legislative update is the official notification of the Income Tax Act, 2025. This new law, which received presidential assent on August 21, 2025, and was published in the gazette on August 22, 2025, replaces the six-decade-old Income-tax Act of 1961. Set to take effect from April 1, 2026, the Act aims to modernize and streamline India's direct tax framework, incorporating recommendations from a Select Committee and public feedback to simplify tax law, reduce sections, and improve clarity for taxpayers.
In the digital realm, the Promotion and Regulation of Online Gaming Bill, 2025, passed by Parliament on August 21, 2025, marks a decisive move to regulate the rapidly growing online gaming sector. This legislation is designed to curb addiction and financial distress caused by predatory money gaming platforms while simultaneously promoting and regulating other forms of online games, such as e-sports and educational games. The government is considering early enforcement of the 'prohibition clauses' within the Bill to address social concerns.
To bolster employment opportunities, particularly for the youth, the Pradhan Mantri Viksit Bharat Rojgar Yojana was launched nationwide on Independence Day, August 15, 2025. Under this scheme, the Central Government will directly provide ā¹15,000 to young individuals taking their first job in the private sector. Additionally, private companies that employ these youth will also receive financial support from the government. Prime Minister Narendra Modi highlighted this initiative on August 22, emphasizing its potential benefit for the youth of Bihar.
Infrastructure development continues to be a key focus. On August 22, 2025, the Prime Minister inaugurated and laid foundation stones for multiple development projects worth approximately ā¹13,000 crore in Gaya, Bihar. These projects span crucial sectors including energy, healthcare, and urban development, aiming to strengthen Bihar's industrial capacity and create new employment opportunities. Notable projects include the Buxar Thermal Power Plant, a new bridge, and upgraded national highways. Furthermore, the Amrit Bharat Station Scheme is progressing, with 1,337 railway stations across the country selected for redevelopment to enhance passenger amenities and modernize infrastructure.
In a related development, the Karnataka Chief Minister announced on August 22, 2025, that the state government will bring out a White Paper on the allocations received for centrally-sponsored schemes. This move comes amid allegations from the state that the Central share for these schemes has dwindled.
Additionally, a transport ministry notification finalized on August 21, 2025, significantly increases registration renewal fees for vehicles older than 20 years. This policy aims to discourage the retention of older vehicles by making their renewal considerably more expensive.
Efforts to boost India's manufacturing sector under the "Make in India" initiative and the Production Linked Incentive (PLI) Scheme continue to attract significant Foreign Direct Investment (FDI). Discussions are also ongoing regarding crucial factor market reforms, including land acquisition and the full implementation of new labor codes, to further enhance India's manufacturing potential.