Development Watch – Week #4 July’25

Development News

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Urban unemployment rises while rural jobless rate falls

India’s unemployment rate remained steady at 5.6% in June, unchanged from May, as an improvement in rural areas offset a rise in urban joblessness. Rural unemployment declined to 4.9% in June from 5.1% in May, while urban unemployment increased to 7.1% from 6.9%. Youth unemployment edged up in June, with 15.3% of individuals aged 15-29 who were working or seeking work remaining jobless, up from 15% in May. The rate was higher among females (17.4%) than males (14.7%). Overall, the unemployment rate among women declined to 5.6% in June from 5.8% in May, while it remained unchanged at 5.6% for males.

Bima Sakhi Yojana by LIC and Rural Development Ministry

Life Insurance Corporation of India (LIC) has partnered with the Ministry of Rural Development to promote its Bima Sakhi Yojana in rural areas. The MoU, signed at the ‘Anubhuti’ National Conclave on Financial Inclusion in Goa. It aims to empower women through insurance distribution. Bima Sakhi Yojana offers a performance-based agency career for women, providing stipends and benefits similar to LIC agents. Bima Sakhi agents are provided with facility to receive monthly stipends of Rs 7,000 in first, Rs 6,000 in second and Rs 5,000 in the third agency year, subject to some terms and conditions. The scheme is also in perfect alignment with goals of Deendayal Antyodaya Yojana – National Rural Livelihood Mission (DAY-NRLM).

Railway project worth Rs. 72,000 Crores for Odisha

Railway projects worth over Rs 80,000 crore are underway in Odisha, with a significant budget allocation of Rs 10,599 crore for 2025-26. Fifty-nine stations are being redeveloped at a cost of Rs 2,379 crore, and Rs 25,000 crore has been sanctioned for new projects in the last year. redevelopment of the Bhubaneswar railway station is being done under the ‘Amrit Bharat Station’ scheme. As part of the redevelopment, the station will get an elevated approach road for the segregation of inward and outward movement. The redeveloped station will have amenities such as improved access, circulating areas, waiting halls, toilets, lifts and escalators, kiosks for local products, better passenger information systems, amenities for disabled people, executive lounges, and nominated spaces for commercial development.

Bihar plan for Clean Energy

Bihar government announced a policy to facilitate renewable energy adoption in the state. There will be benefits of streamlined single-window clearance system and 100% reimbursement of state goods and services tax (SGST), land conversion fees, and stamp duty on lease or transfer of land. The policy also grants a 100% waiver on electricity duty for 15 years and provides long-term open access for 25 years along with full exemption from transmission and wheeling charges. “With the free ISTS (inter-state transmission system) regime drawing to a close, it is time for the industry to act. We are offering one of the most attractive policy regimes in the country-those who invest in Bihar now will fetch maximum returns and lead India’s clean energy revolution from the front,” said Energy Secretary of Bihar (Manoj Kumar Singh). The Union Cabinet in January 2025 approved the launch of the National Critical Mineral Mission (NCMM) with an expenditure of Rs 16,300 crore and an expected investment of Rs 18,000 crore by Public Sector Undertakings.

EV support needed for local rare-earth production

Kinetic Green’s CEO, Sulajja Firodia Motwani, urges government intervention to address rare-earth material shortages impacting India’s EV sector. She highlights the challenges in altering product designs and supply chains, emphasizing the need for government-to-government solutions. While exploring alternative technologies, Motwani stresses continued government support for EV adoption to overcome resistance from traditional ICE manufacturers and achieve critical mass. Kinetic Green founder emphasized that it could take at least two to three years for the players in the automobile sector to localize the supply chain or adopt alternative technologies. The central government has earmarked Rs. 1,345 crore to incentivize rare earth magnets production in India. China commands over 90% of world’s magnet production capacity. These materials are critical across multiple sectors, including automobiles, home appliances, and clean energy systems.

India achieves 50% non-fossil power generation 5 years ahead

India has achieved 50 per cent non-fossil fuel-based power generation capacity of 242.8 GW, out of the total 484.8 GW installed capacity. This is five years ahead of its 2030 target. India has set an ambitious target of having 500 GW of renewable energy-based electricity generation by 2030. In a path-breaking move, The International Finance Corporation (IFC) is investing $20 million in Transvolt Mobility, marking its first equity investment in an electric vehicle fleet platform. This investment aims to help Transvolt expand its fleet to 3,500 vehicles, creating 8,200 jobs over the next five years. It also supports India’s clean mobility goals by deploying heavy commercial EVs across various sectors. This is part of IFCs $50 million financing round. India is also expanding its renewable energy infrastructure, with 48 GW of inter-state transmission network installed for solar and wind power evacuation and 159 GW under construction. The government has planned a 340 GW network to evacuate 230 GW of renewable energy. Green Energy Corridor schemes are also being implemented in several states to strengthen intra-state transmission systems.

Indo-German tech for solar plant in Mount Abu

In the serene hills of Mount Abu, the Brahma Kumaris’ Shantivan campus hosts the India One Solar Thermal Power Plant, a groundbreaking initiative. This plant, operational since 2017, uses solar thermal energy to prepare meals for 50,000 people daily. It eliminates the need for electricity, firewood, or gas. Notably, nearly 90% of the plant’s components were designed and manufactured in India by Brahma Kumaris own team of engineers. Only the solar grade mirrors were imported from the US. The parabolic reflectors are designed to mimic the movement of a sunflower, tracking the sun path across the sky to maximize energy capture. The plant, which began operations in 2017, is claimed to be the sole unit in the world that runs on solar thermal energy round-the-clock. Spread over 35 acres, the one-megawatt capacity solar plant is a product of a collaboration between India’s Ministry of New and Renewable Energy, Germany’s Ministry for the Environment, Nature Conservation, Building and Nuclear Safety, and the German Federal Enterprise for International Cooperation.

51 cruise circuits planned across 14 states by 2027

The union government has planned 51 new cruise circuits across 14 states and 3 UTs by 2027. These are planned under the “Cruise Bharat Mission”. Viking Cruises has also announced its entry into India’s river cruise market with Viking Brahmaputra. It is an 80-guest vessel scheduled to begin operations in 2027. This also signals heightened interest and investment in India’s river cruise tourism sector. Viking Brahmaputra will be indigenously developed by Hooghly Cochin Shipyard Ltd. in Kolkata. It will operate on National Waterway-2. Number of river cruises voyages on National Waterways have increased from 371 in 2023 to 443 in 2024-25. Inland Waterways Authority of India (IWAI) is developing dedicated cruise terminals on Ganga and Brahmaputra rivers. 3 cruise terminals are planned in Varanasi, Guwahati, Kolkata and Patna. In the northeast, four more cruise terminals at Silghat, Biswanath Ghat, Neamati, and Guijan are proposed to be developed by 2027.