NEW DELHI: The Union Cabinet on Wednesday approved four major decisions, including a Rs 10,000-crore scheme to boost domestic container manufacturing, a programme to promote sports goods production, a rural development initiative and a 3% hike in Dearness Allowance (DA) for central government employees and Dearness Relief (DR) for pensioners.Briefing the media on the decisions, Union minister Ashwini Vaishnaw said the measures were aimed at strengthening domestic manufacturing, generating employment and improving rural governance.“Four major decisions were taken at today’s Cabinet meeting. Two of these decisions will significantly strengthen the country’s manufacturing sector, generate employment and boost the economy through manufacturing. The Cabinet approved the Container Manufacturing Programme today,” Vaishnaw said.“Prime Minister Narendra Modi also approved the Sports Goods Manufacturing Scheme. These two major programmes are part of the Prime Minister’s mission to strengthen manufacturing sector by sector, understanding and addressing the specific problems faced by each sector. The third decision concerns capacity building in rural areas and promoting development based on local planning, local problems and local resources…” he added.
The fourth decision is a Diwali gift from Prime Minister Narendra Modi to all central government employees and pensioners: Vaishnaw.
Container Manufacturing Promotion SchemeThe Cabinet approved the Container Manufacturing Promotion Scheme with an outlay of Rs 10,000 crore to expand domestic production and strengthen India’s container manufacturing capacity.According to an official statement, the scheme has four components: interest subvention assistance, testing and certification assistance, land leasing support and operational expenditure assistance.It also sets minimum capacity requirements for new manufacturing facilities and existing units seeking expansion. Greenfield projects must have an annual production capacity of at least 1,00,000 twenty-foot equivalent units (TEUs), while brownfield projects must add at least 25,000 TEUs.The facilities must be commissioned within three years of in-principle approval and comply with global container standards, PTI reported.The scheme is intended to strengthen India’s domestic manufacturing base and reduce dependence on imported containers.Sports Goods Manufacturing Scheme The Cabinet also approved the Sports Goods Manufacturing Scheme as part of the government’s broader push to strengthen domestic manufacturing.Vaishnaw said the container and sports goods programmes were designed to address the specific challenges faced by individual industries, boost production and create jobs.The government aims to strengthen manufacturing sector by sector, rather than follow a one-size-fits-all approach, he said.Pradhan Mantri Viksit Gram Swaraj YojanaThe Union Cabinet approved an allocation of Rs 7,395 crore for the Pradhan Mantri Viksit Gram Swaraj Yojana, which aims to strengthen rural governance through local planning and capacity building.Vaishnaw described the initiative as a shift away from schemes that prescribe development measures towards an approach that allows panchayats to identify their own needs, resources and constraints.“This is a paradigm change,” the minister said. Under the scheme, panchayats will be encouraged to prepare development plans based on local priorities and available resources.The programme will also provide general and specialised training to elected representatives to improve their governance and administrative capabilities.The initiative seeks to make panchayats more financially self-reliant through better utilisation of Finance Commission grants and greater mobilisation of their own-source revenue, Vaishnaw said.Cabinet approves 3% DA hikeThe Cabinet also approved a 3% increase in Dearness Allowance (DA) for central government employees and Dearness Relief (DR) for pensioners, effective July 1, 2026.The increase will benefit more than 1.16 crore employees and pensioners, PTI reported.Announcing the decision Ashwini Vaishnaw said, “The fourth decision is a Diwali gift from Prime Minister Narendra Modi to all central government employees and pensioners. Dearness Allowance (DA) and Dearness Relief (DR) have been increased by 3%, effective July 1, 2026. With this increase, the DA and DR rate will rise from 60% to 63%.”“Details regarding the 6th and 5th Central Pay Commission scales will be provided in the press note. The increase will have an additional financial implication of approximately Rs 10,000 crore for the government and benefit 48 lakh central government employees and 68 lakh pensioners,” he added.DA is paid to serving employees as a percentage of basic pay to help offset inflation, while DR provides a similar benefit to pensioners. The government revises the rates twice a year to help protect their purchasing power against rising prices.