Government Schemes Launched in 2025: Driving Inclusive Growth and Structural Reform

The year 2025 marked a significant phase in India’s policy landscape, with the government unveiling a range of new schemes and reform-driven initiatives aimed at accelerating economic growth, strengthening social security, promoting digital inclusion and supporting sustainable development. 

Announced through the Union Budget 2025–26 and subsequent policy decisions, these measures underline the government’s continued focus on inclusive development and long-term economic transformation.

Boost to Startups and MSMEs

Support for startups and micro, small and medium enterprises emerged as a key priority in 2025. During Union Budget 2025-26, the government announced a new Fund of Funds Scheme (FFS) with a corpus of ₹10,000 crore to provide equity support to early-stage ventures and catalyse innovation. 

In addition, the eligibility period for startup incorporation was extended by 5 years, offering budding entrepreneurs a longer runway to scale their businesses.

This initiative builds on the earlier Fund of Funds launched in 2016 with a similar corpus, which was deployed across the 14th and 15th Finance Commission cycles. The scheme is designed to stimulate venture capital investments and is operationalised by the Small Industries Development Bank of India. 

SIDBI channels funds to SEBI-registered alternative investment funds, which in turn invest in promising startups across sectors. Alongside this, expanded credit guarantee coverage for MSMEs aims to improve access to institutional finance and encourage higher lending to smaller enterprises.

Strengthening Agriculture and Rural Credit

Agriculture and allied sectors continued to receive focused policy support in 2025, reflecting their central role in India’s economy and employment. With over 46% of the population dependent on agriculture and allied activities, ensuring affordable and timely credit remains a critical objective.

Under the Union Budget 2025–26, the government enhanced the loan limit under the Kisan Credit Card scheme from ₹3 lakh to ₹5 lakh under the Modified Interest Subvention Scheme. 

This move is expected to significantly improve short-term credit availability for farmers, dairy operators and fishermen, reducing dependence on informal borrowing and supporting productivity and income stability in rural areas.

Social Security for Gig and Platform Workers

Recognising the rapid expansion of the gig and platform economy, the government introduced targeted social security measures for online platform workers. These initiatives are aligned with the Code on Social Security, 2020, which for the first time formally defined gig and platform workers and laid the foundation for their welfare coverage.

Union Budget 2025–26 announced provisions for the registration of platform workers on the e-Shram portal, issuance of identity cards and healthcare coverage under the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana. 

The scheme provides health insurance cover of ₹5 lakh per family per year for secondary and tertiary care across thousands of empanelled hospitals nationwide. These steps aim to integrate platform workers into the formal social security framework and recognise their contribution to the economy.

Housing and Urban Development Initiatives

To address delays in residential projects and ease the burden on homebuyers, the government launched the second phase of the Special Window for Affordable and Mid-Income Housing fund. Announced on February 1, 2025, SWAMIH Fund 2 has a corpus of ₹15,000 crore and targets the completion of nearly one lakh stalled housing units.

The fund provides priority debt financing to stressed, brownfield and RERA-registered housing projects. With over 50,000 homes already delivered and another 40,000 expected by 2025, the initiative aims to reduce financial stress on middle-class families facing the dual burden of EMIs and rent while supporting stability in the real estate sector.

Digital and Technology-Focused Schemes

Digital transformation and innovation formed another cornerstone of the government’s 2025 agenda. The Union Cabinet approved the Research, Development and Innovation Scheme on July 1, 2025, with a total outlay of ₹1 lakh crore over six years, including ₹20,000 crore for FY 2025–26.

The scheme seeks to encourage private sector participation in research and innovation, finance high-impact projects at advanced technology readiness levels and support the acquisition of strategically important technologies. It targets sunrise sectors such as artificial intelligence, quantum computing, robotics, space, biotechnology, clean energy, climate action and the digital economy.

The RDI Scheme will be implemented through a two-tier funding mechanism under the Anusandhan National Research Foundation, with funding provided through long-term, low-cost loans and, in select cases, equity-based support. Outreach programmes conducted nationwide have generated strong industry interest, highlighting the scheme’s potential to accelerate deep-tech innovation and build a private-sector-led R&D ecosystem.

Also Read: Viksit Bharat Rozgar Bill Gets Passed in Lok Sabha!

Conclusion

The government schemes launched in 2025 reflect a holistic approach to policy-making that balances economic growth with social welfare and technological advancement. By strengthening support for farmers, workers, entrepreneurs and homebuyers while promoting innovation and digital readiness, these initiatives aim to reinforce India’s development trajectory and foster inclusive, sustainable growth in the years ahead.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a private recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.