Wed Oct 16 11:22:26 UTC 2024: ## India Announces Major Economic Measures Ahead of Diwali

**New Delhi, India:** The Indian government has announced a series of economic measures aimed at boosting the agricultural sector and providing relief to government employees, just weeks ahead of crucial state elections in Maharashtra and Jharkhand.

The Union Cabinet, on October 16th, approved a significant increase in the minimum support price (MSP) for six key Rabi crops for the marketing season 2025-26. The MSP for wheat, barley, gram, lentil, mustard, and sunflower has been hiked by 50-105 percent, with increases ranging from Rs 130 to Rs 300 per quintal. This move, in line with the 2018 budget announcement, aims to ensure remunerative prices for farmers and incentivize crop diversification.

In a separate announcement, the Cabinet approved a 3% increase in the dearness allowance (DA) for government employees, effective from July 1st. This hike, impacting over 49 lakh central government employees and 64 lakh pensioners, will provide a financial boost to government staff ahead of the Diwali festival.

Furthermore, the Cabinet greenlighted the construction of a new rail-road bridge over the Ganges in Varanasi, Uttar Pradesh. This Rs 2,642 crore project will feature four railway lines and a six-lane highway, aiming to improve connectivity and reduce congestion in the region. The bridge, expected to be completed within four years, is estimated to save the country Rs 638 crore annually in diesel imports.

While the timing of these announcements coincides with upcoming state elections, the government insists they are unrelated and solely focused on economic betterment.

Read More