The big legislative push comes close on the heels of the government’s renewed reforms drive, following the sweeping overhaul of the goods and services tax (GST) regime and the notification of labour codes-—moves to support the economy amid geoeconomic challenges and the 50% tariffs imposed by the US.
The approvals are a key step forward in policy changes that have been previously announced. The cabinet chaired by Prime Minister Narendra Modi gave its nod to the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) bill to overcome a stringent liability provision, which had discouraged foreign investors, and ending the state monopoly in the sector. These measures are part of a bigger push to boost India’s atomic energy capacity to 100 gigawatts by 2047. ET was the first to report on the SHANTI bill on December 12. The government cleared the Insurance Laws (Amendment) Bill (2025), paving the way for 100% foreign investment in the insurance sector, raising it from 74% now. It also allows companies to avail of a composite licence to undertake various types of insurance activities.
According to officials, the Insurance Amendment Bill will be introduced as the omnibus Sabka Bima Sabki Raksha, replacing the Life Insurance Corporation Act (1956), the Insurance Regulatory and Development Authority Act (1999) and the Insurance Act (1938). In another move to consolidate various laws, the cabinet cleared the Securities Market Code Bill, which will replace three existing acts.
Higher Education Regulator
These are the Securities Contracts (Regulation) Act (1956), the Securities and Exchange Board of India Act (1992) and the Depositories Act (1996). The cabinet also approved a bill to set up a higher education regulator to replace bodies such as the University Grants Commission (UGC) and the All India Council for Technical Education (AICTE). The proposed legislation, earlier called the Higher Education Commission of India bill, has been named the Viksit Bharat Shiksha Adhikshan bill.
The cabinet also cleared a bill to repeal 71 laws that have outlived their utility on the statute books, officials said, adding that at least one of them dates back to the British colonial era. Also approved was the free trade agreement (FTA) with Oman, ahead of Modi’s visit to the country, and the Coal Linkage for Seamless, Efficient & Transparent Utilisation or CoalSETU window. This is for the auction of coal linkages for diverse industrial uses, besides exports to ensure fair access and optimal utilisation of the resource.The government will introduce the Pujya Bapu Gramin Rozgar Guarantee bill to amend the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) to guarantee 125 days of work to the rural poor in a year, from 100 now, besides dropping Gandhi from the name of the legislation.
The cabinet approved the allocation of Rs 11,700 crore for Census 2027 through digital means, which will start April. While aggregated data on caste and other economic parameters will be published, individual data won’t be made public as per the data protection law.