The Greater Bengaluru Governance Bill, 2024 Legislative Brief

 PRS LEGISLATIVE RESEARCH STATE LEGISLATIVE BRIEF: KARNATAKA The Greater Bengaluru Governance Bill, 2024

Authors: Prachee Mishra (prachee@prsindia.org), Shrusti Singh (shrusti@prsindia.org) Date: April 25, 2025

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Overview

The Greater Bengaluru Governance Bill, 2024 was introduced in the Karnataka Legislative Assembly on July 23, 2024. It replaces the existing Bruhat Bengaluru Mahanagara Palike (BBMP) Act, 2020. The Bill was referred to a Joint Select Committee, and the version recommended by the Committee was passed on March 10, 2025. However, the Governor has since returned the Bill to the legislature for reconsideration.

Key Features Summary

• Greater Bengaluru Authority (GBA): An apex body chaired by the Chief Minister will be established, assisted by an Executive Committee.
• Structure: The region will be divided into multiple city corporations (up to seven), with their functions coordinated by the GBA.
• Wards: Each corporation may have up to 150 wards.

Key Issues and Analysis Summary

• The Chief Minister chairing the GBA and the Metropolitan Planning Committee may violate principles of the 74th Amendment.
• The Bill grants executive and administrative powers to legislators at the local level.
• There is an overlap between the powers of city corporations and existing statutory authorities.

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PART A: HIGHLIGHTS OF THE BILL

Context

The BBMP was established in 2008 under the Karnataka Municipal Corporation (KMC) Act, 1976, which initially utilized a three-tier system of governance. In 2020, the BBMP Act replaced these provisions, adding a fourth tier of zonal committees. The 2024 Bill seeks to restructure this into a three-tier framework consisting of the GBA, city corporations, and ward committees.

Administrative Structure

The proposed structure moves away from a single corporation to multiple city corporations under the GBA.

• Greater Bengaluru Authority (GBA): Chaired by the Chief Minister, with the Chief Commissioner as member secretary.
• City Corporations (up to 7): Each led by an elected Mayor and an appointed Commissioner.
• Ward Committees: Led by an elected Councillor.

The Bill for reconsideration removes the zonal committees and area sabhas found in previous versions.

Greater Bengaluru Authority (GBA)

The GBA is the apex body responsible for coordinating and supervising city corporations and overall regional development. Its voting members include the Minister of Bengaluru Development, state ministers from the area, all local MPs and MLAs, Mayors, the Commissioner of Police, and various agency heads. It serves as the Planning Authority, creating master plans and executing projects that span multiple corporations. An Executive Committee, chaired by the Minister of Bengaluru Development, handles day-to-day functions.

Metropolitan Planning Committee (MPC)

The state will constitute the Bengaluru MPC to develop a draft development plan for the Greater Bengaluru Area. Like the GBA, it will be chaired by the Chief Minister.

City Corporations

Up to seven corporations can be formed. Eligibility for a corporation area includes a population over 10 lakh, density exceeding 5,000 inhabitants per sq km, and local revenue over Rs 300 crore. Members include elected councillors, local MPs and MLAs, and nominated experts (without voting rights). Corporations have a five-year term, though the state may dissolve them under specific circumstances.

Authorities and Wards

• Mayor/Deputy Mayor: Elected for 30-month terms; they preside over meetings and have inspection powers.
• Commissioner: Appointed for two years as the Chief Executive Officer.
• Wards: Each corporation can have up to 150 wards. Ward committees, chaired by a councillor, are responsible for development schemes, tax collection, and maintenance of civic services like waste and water.
• Zones: The government will notify zones within corporations, each with an appointed Joint Commissioner responsible for administration and coordinating with ward committees.

Finance and Taxation

Corporations can levy property taxes, advertisement fees, and various cesses. Property tax rates are determined by the government in consultation with the GBA. If a corporation cannot meet its mandatory functions, the state provides grants. Fiscal tools include a three-year medium-term fiscal plan, a Comprehensive Debt Limitation Policy, and a Sinking Fund for loan repayments.

Other Functions

Corporations manage public streets, building bye-laws, public health, disaster management, and urban heritage conservation.

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PART B: KEY ISSUES AND ANALYSIS

Devolution of Powers and the 74th Amendment

The Constitution (74th Amendment) Act, 1992, emphasizes establishing urban local bodies (ULBs) as institutions of self-government. Critics argue the Bill centralizes power instead of devolving it.

• Chief Minister’s Role: By heading both the apex municipal body and the MPC, the Chief Minister gives the state government a direct role in municipal governance, potentially undermining decentralization.
• Public Authorities: The Bill does not alter the independent status of authorities like the Bangalore Development Authority, which may create overlaps and weaken the accountability of elected city corporations.
• Dissolution Power: The state’s power to dissolve a directly elected city corporation if it fails to follow directions is viewed as a significant centralizing measure.
• Required Approvals: Corporations must seek GBA or government approval for basic actions like selling property or entering contracts, which may defeat the purpose of local empowerment.

Fiscal Autonomy and Participation

Unlike other states where municipal corporations set property tax rates, this Bill gives that power to the state government and GBA, potentially constraining fiscal autonomy. Furthermore, the removal of "Area Sabhas" (which included all registered voters) may limit community participation compared to the 2020 Act.

Legislators and Executives

The Bill involves MLAs in administrative roles via constituency-level coordination committees, raising questions about the separation of powers. Additionally, executive power remains vested in appointed Commissioners rather than the elected Mayor, a practice criticized by various reform commissions as diluting democratic legitimacy.

Election Offenses

The Bill imposes significantly higher fines for election-linked offenses compared to national or other municipal laws. For example, canvassing near a polling station carries a maximum fine of one lakh rupees under the Bill, compared to Rs 250 in other major cities.

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Comparison of the GBG Bill (Introduced vs. Passed)

Provision	Bill Introduced (July 2024)	Bill Passed (March 2025)
Number of Corporations	Up to 10	Up to 7
Metropolitan Planning Committee	No MPC provided	Provision for GBA as Planning Authority and Bengaluru MPC
Financial Oversight	GBA to review fiscal plans and allocate funds	GBA's role in fiscal plan review and fund allocation removed; focuses on tax consultation
Area Sabhas	Included for local participation	Removed
Security Force	Greater Bengaluru Security Force provided	Provision removed

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Conclusion: Zones and Joint Commissioner

The Bill establishes a three-tier system but also requires the government to notify zones with appointed Joint Commissioners. It remains unclear how these zones will integrated into the broader structure of GBA, city corporations, and ward committees.

Tamil Nadu Online Gambling and Gaming Ordinance 2022 Brief

 The following is the full text of the state legislative brief regarding The Tamil Nadu Prohibition of Online Gambling and Regulation of Online Games Ordinance, 2022, as prepared by PRS Legislative Research on October 17, 2022.

Key Features

• The Ordinance prohibits online gambling and online games of chance played for money or other stakes, specifically including Rummy and Poker.
• It establishes the Tamil Nadu Online Gaming Authority to regulate providers, identify games of chance, and recommend their inclusion in the schedule of prohibited games.
• Non-local game providers (based outside Tamil Nadu) must follow specific due diligence or restrict access for people within the state.

Key Issues and Analysis

• Banning Games of Skill: Some criteria for prohibiting games of chance may inadvertently ban online games of skill. Notably, the Ordinance bans Rummy and Poker, which the Supreme Court has previously recognized as games of skill.
• Fundamental Rights: The Authority’s power to impose time and monetary restrictions on adults playing online games may violate the right to freedom of expression and the right to life.
• Jurisdiction and Consistency: The state may lack the jurisdiction to regulate providers based outside Tamil Nadu serving customers outside the state. Additionally, the Ordinance regulates certain games differently when played online versus physically.

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PART A: HIGHLIGHTS OF THE ORDINANCE

Context

In 2021, Tamil Nadu attempted to prohibit all games played for stakes through an amendment to its 1930 Gaming and Police Laws Act, aiming to prevent addiction and suicides. However, the Madras High Court struck this down as arbitrary and excessive. This 2022 Ordinance was subsequently promulgated on October 3, 2022, following recommendations from a committee chaired by Retd. Justice K. Chandru.

Key Provisions

• Prohibition of Online Gambling: Defined as wagering or betting on online games of chance for money or "other stakes," which includes virtual credits, tokens, or objects purchased in-game.
• Definition of Online Games of Chance: These are games where (i) chance dominates skill, (ii) they are presented as games of chance, (iii) chance can only be removed by superlative skill, or (iv) they use random event generators (cards, dice, wheels).
• Tamil Nadu Gaming Authority: This body issues certificates to local providers, sets time/monetary/age limits, and maintains data on gaming activities.
• Non-Local Providers: Providers outside the state must exercise due diligence, such as entering contracts with customers to ensure they aren't in Tamil Nadu and collecting personal details to establish physical presence.
• Penalties: Players of prohibited games face up to three months in prison or a fine of ₹5,000. Providers of such games face up to three years in prison or a ₹10 lakh fine.

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PART B: KEY ISSUES AND ANALYSIS

The Ordinance May be Banning Online Games of Skill

The criteria used to define "games of chance" are broad. For instance, requiring random event generators to simulate shuffling cards or throwing dice means almost any online card or dice game—including skill-based games like Bridge—could be classified as a game of chance. Furthermore, the requirement of "superlative skill" to eliminate chance sets a higher bar than the Supreme Court's standard of a "substantial degree or preponderance of skill".

Conflict with Judicial Precedents

The Ordinance explicitly bans Rummy and Poker, yet the Supreme Court (1967) and various High Courts have determined these are games of skill. Courts have noted that tasks like memorizing the fall of cards in Rummy require significant skill.

Restrictions on Fundamental Rights and Privacy

By allowing the Authority to dictate how much time and money an adult can spend on online games, the Ordinance may infringe upon Article 19(1)(a) (freedom of expression) and Article 21 (right to life). There is also a concern regarding privacy, as the state would need to monitor individual usage to enforce these limits.

Differentiation Between Online and Physical Play

The Ordinance requires registration for online game providers but not for those providing the same services physically. For example, a newspaper's online crossword would require registration, while the print version would not, despite the Madras High Court noting that skills for board and card games remain the same regardless of the medium.

Jurisdictional Challenges

The Ordinance requires non-local providers to follow due diligence even for customers based outside the state if they don't use geo-blocking to restrict access to Tamil Nadu. Under Supreme Court precedents (1957), a state law must have a real and not illusory territorial connection to the person being legislated upon; the Ordinance may fail this test for providers and customers with no connection to Tamil Nadu.

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Annexure: Inter-state Comparison

State	Provision	Status
Tamil Nadu (2022)	Prohibits online gambling and games of chance (inc. Rummy/Poker).	Ordinance in force.
Karnataka (2021)	Prohibited wagering/betting in any game of chance or skill.	Struck down by High Court.
Meghalaya (2021)	Permits games of skill/chance with a license.	In force.
Andhra Pradesh (2020)	Prohibits online gaming, betting, and wagering.	Challenge pending.
Nagaland (2015)	Permits wagering on games of skill (e.g., Poker) with a license.	In force.
Sikkim (2008)	Permits games of chance/skill with a license.	In force.

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Disclaimer: This brief is for informational purposes by PRS Legislative Research, an independent, not-for-profit group. The opinions expressed are those of the authors.

Legislative Brief: Karnataka Gig Workers Welfare Bill 2025

 The following is the full text of the State Legislative Brief on The Karnataka Platform based Gig Workers (Social Security and Welfare) Bill, 2025, published by PRS Legislative Research on August 13, 2025.

Overview of Key Features

• Registration: Gig workers sourcing work via platforms will receive a unique ID. A Welfare Board will oversee the registration of both workers and aggregators, while also creating and monitoring social security schemes.
• Welfare Fund: A Social Security and Welfare Fund will be established, funded by aggregators, gig workers, and both central and state governments.
• Transparency: Aggregators are required to inform workers about work parameters and the impact of automated monitoring and decision-making systems on their working conditions.

Key Issues and Analysis

• Definition: The Bill’s definition of gig work is based primarily on the manner of obtaining work rather than conceptual features, which may lead to the misclassification of traditional employees as gig workers.
• Financing: There is an ongoing debate regarding who should bear the primary cost of social security—aggregators, workers, or the government.
• Business Models: Determining welfare fees as a percentage of payout may result in uneven treatment of similar services depending on an aggregator’s specific business model.

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PART A: HIGHLIGHTS OF THE BILL

Context

The gig economy in India is growing rapidly. NITI Aayog estimated that in 2020-21, 77 lakh workers (1.5% of the workforce) were engaged in gig work, a number expected to rise to 2.35 crore (4.1%) by 2029-30. While the central Code on Social Security, 2020 provides for such workers, it is not yet in effect. Consequently, states like Rajasthan and Bihar have passed their own laws, while others like Telangana and Jharkhand have invited public consultation. Karnataka initially promulgated an Ordinance in May 2025 and released Draft Rules in July 2025 before introducing this Bill in the Legislative Assembly on August 12, 2025.

Key Features

• Gig Worker: Defined as someone in a contractual, piece-rate arrangement through a platform for a given rate of payment. They must be electronically registered by the Board within 30 days of onboarding.
• Aggregator: Defined as a digital intermediary connecting buyers and sellers. Aggregators must register with the Board within 45 days of the Act’s commencement and provide data on registered workers.
• Transparency: Contracts must be transparent, including terms for payments, deductions, and incentives. Workers must have the explicit right to refuse tasks.
• Grievance Redressal: Workers can file grievances against aggregators or the Board. Payout or termination disputes go first to the aggregator’s Internal Dispute Resolution Committee; if unresolved in 14 days, the Board makes a final decision.
• Gig Workers Welfare Fee: A fee between 1% to 5% of the payout per transaction will be collected from aggregators.
• Welfare Fund: This fund will consist of welfare fees, worker contributions, government grants, and donations. Administrative costs are capped at 5% of the fund.
• Welfare Board: Chaired by the state Labour Minister, the Board includes government secretaries, a CEO, and representatives from gig workers (4), aggregators (4), and civil society (2).
• Penalties: Failure to pay the welfare fee incurs 12% annual interest. General contraventions carry fines ranging from Rs 5,000 to one lakh rupees.

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PART B: KEY ISSUES AND ANALYSIS

Defining Gig Work

A major challenge is that gig work blurs the lines between employment and self-employment. The Bill defines gig work based on how it is sourced (through a platform) rather than the nature of the relationship (lack of mutual obligation or degree of control).

Table 1: Comparison of Work Forms

Parameter	Employer-Employee	Contract Labour	Freelance	Gig Work
Engagement	Written, permanent contract.	Via agency/contractor.	Direct, referrals, or online.	Via platform/aggregator.
Flexibility	None.	Limited.	High (clients, pay, hours).	Choice of hours/location; platform constraints.
Control	Direct control.	Supervisory (employer); Ultimate (contractor).	Minimal.	Ratings, pricing, location tracking.
Income	Remuneration; no competitors.	Multiple (if part-time).	Multiple projects.	Multiple platforms.

Judicial precedents, such as a Karnataka High Court ruling on Ola drivers and a UK Supreme Court ruling on Uber, suggest that high levels of control over fares and routes can mean workers should be classified as employees rather than independent contractors.

Platform-Only Benefits

The Bill only extends benefits if work is obtained through an online platform. This creates a distinction between workers performing identical tasks (e.g., an Uber driver vs. a traditional taxi driver) solely based on the technology used to source the job.

Financing Social Security

Financing models vary globally. In India, the Employees’ Provident Fund involves joint contributions from employers and employees. The Karnataka Bill follows a tripartite model involving aggregators, workers, and the government.

Table 3: International Financing Models

• UK: Funded by national insurance and tax; gig workers pay specific national insurance.
• USA: Contributions by employers, employees, and self-employed.
• Australia: Public funds and mandatory employer "superannuation" payments if the worker meets the "employee" definition.
• Singapore: Platforms and workers both contribute to the Central Provident Fund.

Business Model Disparities

Because the welfare fee is a percentage of the payout, business models where the customer pays the worker directly (e.g., Namma Yatri or Rapido) might result in a zero payout from the aggregator, exempting them from the fee. Conversely, platforms that handle the transaction (e.g., Uber or Ola) would be obligated to pay, leading to unequal treatment of similar services.

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Comparison of State Laws

Feature	Karnataka (Bill)	Rajasthan (Act)	Bihar (Act)	Telangana (Draft)	Jharkhand (Draft)
Gig Worker Def.	Via platform; pay by terms.	Outside ER-EE relationship.	Outside ER-EE; piece-rate.	Outside traditional ER-EE.	Same as Rajasthan.
Worker Reg.	By Board (30 days).	By aggregator (60 days).	By aggregator (60 days).	Self-registration.	Same as Rajasthan.
Transparency	Parameters/algorithm.	No provision.	Criteria/data/ratings.	Same as Karnataka.	Ratings/data/class.
Termination	14-day notice.	No provision.	Same as Telangana.	7-day notice/written.	Same as Karnataka.
Welfare Fee	1% to 5% of payout.	% of transaction value.	1% to 2% of payout.	Same as Rajasthan.	% of transaction value.

Karnataka Crowd Control Bill 2025 Legislative Brief

 The following is the full text of the legislative brief for The Karnataka Crowd Control (Managing Crowd at Events and Place of Gathering) Bill, 2025, as provided in the source material:

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PRS LEGISLATIVE RESEARCH Jahanvi Choudhary (jahanvi@prsindia.org) October 17, 2025

State Legislative Brief: KARNATAKA

The Karnataka Crowd Control (Managing Crowd at Events and Place of Gathering) Bill, 2025

Key Features

• The Bill requires a person to obtain permission for organising an event with a crowd of 5,000 or more attendees.
• The specified authority will conduct an enquiry before granting permission. It will prepare a security plan for the event and fix the duties of organisers and departments such as fire safety and health.
• Organisers are required to provide an indemnity bond of one crore rupees. They will be liable to pay compensation in cases of deaths or damage to public or private property that may happen during the event.

Key Issues and Analysis

• The Bill requires organisers to compensate for losses due to crowd disaster or civil disturbance, and this liability arises regardless of fault. The question is whether this is appropriate.
• The Bill exempts certain family events. The question is whether the exemption based on the purpose of the event alone is appropriate.
• Organising an unpermitted event is punishable with imprisonment between three and seven years, a fine up to one crore rupees, or both. There is a lack of guidance on determining the punishment within this range.

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PART A: HIGHLIGHTS OF THE BILL

Context

The Bill aims to provide for effective management of crowds at events and places of gathering and to prevent unlawful gathering. It was introduced in the Karnataka Legislative Assembly in August 2025 and referred to a Select Committee chaired by Dr. G. Parameshwara for scrutiny.

Between 2013 and 2023, India registered 1,272 stampede cases leading to 1,394 deaths. While Karnataka registered cases in 2013 and 2014, none were registered between 2015 and 2023 until June 2025, when a crowd rush in Bangalore led to the death of 11 persons.

Currently, multiple laws govern crowd management, including:

• The Bharatiya Nyaya Sanhita, 2023: Prohibits unlawful assembly of five or more persons.
• The Bharatiya Nagarik Suraksha Sanhita, 2023: Empowers police to disperse assemblies and allows magistrates to prohibit them.
• The Police Act, 1861 & Karnataka Police Act, 1963: Empower authorities to require licenses for public assemblies and maintain order.
• The National Disaster Management Act, 2005: Provides guidelines (issued in 2014) highlighting issues like casual permit issuance, lack of manpower, and use of untrained security. It recommended debating the legal liability of organisers and making insurance mandatory.

Key Features

• Permission for organising events: Permission is mandatory for events with a crowd of 5,000 or more. Applications must be submitted at least 10 days prior to the specified authority based on crowd size:
  • 5,000 to 7,000: Officer-in-charge of nearby police station.
  • 7,000 to 50,000: Deputy Superintendent of Police.
  • More than 50,000: Superintendent of Police or Commissioner of Police.
• Role of the authority: The authority conducts an enquiry into organiser details, purpose, expected crowd, safety measures, and No Objection Certificates (NOCs) from fire safety, health, public works, and traffic police. Permission must be granted or rejected within four days. A security plan (scheme of bandobast) must be prepared.
• Role of the organisers: Organisers must ensure smooth crowd movement and sign a one crore rupee indemnity bond. They are liable for property damage or fatalities; properties of convicted organisers may be attached to compensate victims.
• Offences and Penalties:
  • Unpermitted events: 3 to 7 years imprisonment, a fine up to one crore rupees, or both.
  • Civil disturbance: Up to 3 years imprisonment, a fine of Rs 50,000, or both.
  • Disobeying police directions: Rs 50,000 fine and one month of community service.
  • Crowd disaster (crush/surge): 3 to 7 years imprisonment for injuries; 10 years to life imprisonment for fatalities.

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PART B: KEY ISSUES AND ANALYSIS

Compensation payable by organisers

• Regardless of fault: The Bill imposes absolute and unlimited liability on organisers for loss of life or property damage resulting from civil disturbance or crowd disaster. This applies even if they were not negligent. The brief questions if this is appropriate, especially if an incident occurs at a rented venue that was certified safe by other agencies.
• Comparison with other laws: Laws like the Motor Vehicles Act, 1988 and Civil Liability for Nuclear Damage Act, 2010 have different regimes for no-fault liability and often cap the amount or require insurance.
• No compensation for injuries: While providing for fatalities, the Bill does not mandate compensation for injuries, unlike the Public Liability Insurance Act, 1991.

Exemptions and Definitions

• Family events: The Bill exempts family functions like marriages held on private (including leased) premises. The brief questions if exempting events based solely on purpose is appropriate, as crowd management concerns still apply.
• Vague terms: The terms 'family functions or events' and 'mass gathering' are not defined. This could lead to disputes, such as whether a large Ganpati puja pandal hosted by a family counts as a private family event.

Legal and Procedural Concerns

• Wide range of punishment: There is no guidance on how a judge should determine punishment within the 3-to-7-year range for the purely factual offence of holding an unpermitted event.
• Offences by companies: Unlike the Disaster Management Act, 2005, the Bill does not specify which individuals within a company (e.g., directors or managers) would be held liable for offences.
• Indemnity bond: It is unclear under what specific conditions the required one crore rupee indemnity bond would be invoked.

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This brief is based on the Karnataka Crowd Control Bill, 2025 and various referenced statutes and reports.

The Delimitation Act, 2026

 The primary purpose of The Delimitation Bill, 2026 is to provide for the readjustment of seat allocations in the House of the People (Lok Sabha) and the Legislative Assemblies of States and Union territories. According to the sources, this includes the division of these regions into territorial constituencies for upcoming elections.

The broader objectives and purpose of the Bill are detailed below:

1. Addressing Demographic Shifts

The Bill addresses the fact that current seat allocations are based on the 1971 census, and the division of territorial constituencies is based on the 2001 census. Significant population growth and migration—particularly from rural to urban areas—have led to varying population densities across electoral constituencies, necessitating a readjustment based on the "latest census figures" to ensure equitable representation.

2. Implementation of Women’s Reservation

A central objective of the 2026 Bill is to facilitate the reservation of one-third of the total number of seats for women in the House of the People and State Legislative Assemblies. This includes:

• Seats reserved for women belonging to the Scheduled Castes (SC) and Scheduled Tribes (ST).
• The rotation of these reserved seats across different constituencies within a State or Union territory.
• The overarching goal of this provision is to enhance women's participation in policy-making and governance.

3. Constitutional and Legal Mandate

The Bill seeks to fulfill requirements under Articles 82 and 170 of the Constitution, which mandate that seat allocations and constituency divisions be readjusted by an authority determined by Parliament after a census. It also aligns with newer constitutional provisions (Articles 239AA, 330A, 332A, and 334A) regarding women's representation.

4. Fair Representation for SC and ST Communities

The Delimitation Commission is tasked with determining the number of seats to be reserved for Scheduled Castes and Scheduled Tribes based on population. The Bill specifies that these reserved constituencies should be located in areas where the proportion of their population to the total is largest or comparatively large.

5. Establishment of the Delimitation Commission

To achieve these objectives, the Bill provides for the constitution of a Delimitation Commission. This Commission is empowered to:

• Determine its own procedures with the powers of a civil court.
• Use "latest census figures" as the foundation for all readjustments.
• Ensure constituencies are geographically compact areas that respect physical features, administrative boundaries, and public convenience.
• Issue orders that carry the force of law and cannot be questioned in any court.

Under The Delimitation Bill, 2026, the Delimitation Commission is the central authority established to perform the critical task of redrawing electoral boundaries and readjusting seat allocations in India,.

The sources provide the following details regarding the Commission's composition, duties, and powers:

1. Composition of the Commission

The Commission is constituted by the Central Government through a notification and consists of three primary members:

• Chairperson: A person who is or has been a Judge of the Supreme Court, appointed by the Central Government,.
• Ex Officio Members: The Chief Election Commissioner (or a nominated Election Commissioner) and the State Election Commissioner of the state being reviewed.
• Secretariat Support: An ex officio Secretary, nominated from the Secretaries of the Election Commission, assists the Commission using the resources and employees of the Election Commission.

2. Associate Members and Expert Assistance

To ensure local representation and technical accuracy, the Commission incorporates additional support:

• Associate Members: For each State, the Commission associates ten persons—five from the House of the People and five from the State’s Legislative Assembly—nominated by their respective Speakers,. While they assist the Commission, they do not have the right to vote or sign the Commission's final decisions.
• Technical Experts: The Commission has the power to call upon the Registrar-General and Census Commissioner, the Surveyor General of India, experts in geographical information systems (GIS), or any other government officer whose expertise is required,.

3. Core Duties and Mandate

The Commission’s primary duty is to readjust the allocation of seats and delimit territorial constituencies based on the "latest census figures",. This includes:

• Seat Allocation: Determining the number of seats for the House of the People and each State Legislative Assembly.
• Reservations: Determining the number and location of seats reserved for Scheduled Castes (SC) and Scheduled Tribes (ST),.
• Women’s Representation: A key new mandate is to provide for the one-third reservation of seats for women, including the rotation of these reserved seats across different constituencies,,.
• Constituency Design: Ensuring constituencies are geographically compact, respecting administrative boundaries, physical features, and public convenience.

4. Legal Powers and Procedures

The Commission operates with significant legal authority:

• Civil Court Powers: It determines its own procedures and possesses the powers of a civil court for summoning witnesses, requiring document production, and requisitioning public records,.
• Decision Making: Acts and orders are determined by the majority opinion of the members.
• Finality of Orders: Once the Commission’s orders are published in the Gazette of India, they carry the force of law and cannot be questioned in any court.
• Public Consultation: Before finalizing orders, the Commission must publish its proposals and hold public sittings to consider objections and suggestions from the citizenry,.

5. Terms and Operational Context

The Central Government specifies the term of the Commission, which can be extended upon the Commission's request. Its orders apply to every election held after their publication, superseding any previous inconsistent laws or notifications,. The Commission is also specifically mandated to act for the purpose of delimiting constituencies in Jammu and Kashmir currently under the occupation of Pakistan, should that occupation cease,.

Under The Delimitation Bill, 2026, associate members are individuals nominated to assist the Delimitation Commission in its duties for each specific State or Union territory. Their involvement ensures that local legislative representatives from both the national and state levels have a voice in the delimitation process, though their formal power within the Commission is strictly limited.

The following details regarding associate members are outlined in the sources:

1. Composition and Selection

For each State, the Commission associates ten persons to provide assistance. The composition is typically split as follows:

• Five members of the House of the People (Lok Sabha) who represent that State.
• Five members of the Legislative Assembly of that State.

Special Provision for Smaller States: If a State has five or fewer members in the House of the People, all those members serve as associate members. In such cases, the total number of associate members for that State will be fewer than ten.

2. Nomination Process

The responsibility for nominating these members lies with the presiding officers of the respective legislative bodies:

• Nominating Authorities: The Speaker of the House of the People nominates the Lok Sabha representatives, and the Speaker of the Legislative Assembly nominates the state-level representatives.
• Composition Criteria: Nominations must be made with "due regard to the composition" of the respective House or Assembly, ensuring representative diversity.
• Timeline: The first nominations must be made by Assembly Speakers within one month and by the Lok Sabha Speaker within two months of the Commission's constitution.
• Communication: These nominations are communicated to the Chief Election Commissioner and, in the case of state nominations, also to the Speaker of the House of the People.

3. Role and Key Limitations

While associate members are integral to the Commission's work in a specific State, the Bill establishes clear boundaries regarding their authority:

• Purpose of Assistance: Their primary role is to assist the Commission in its duties, specifically for matters relating to their respective State.
• No Decision-Making Power: Explicitly, associate members do not have the right to vote on Commission matters, nor do they have the right to sign any final decision of the Commission.
• Right to Dissent: When the Commission publishes its proposals for the delimitation of constituencies, it must also include any dissenting proposals from associate members who wish for them to be published.

4. Administrative and Operational Rules

The Bill also provides for the continued operation and stability of the associate member groups:

• Filling Vacancies: If an associate member’s office falls vacant due to death or resignation, it is to be filled "as soon as may be practicable" by the relevant Speaker.
• Continuity of Action: A group of associate members has the power to act despite the temporary absence of a member or the existence of a vacancy in the group. Any proceedings or acts taken during such an absence cannot be called into question or invalidated on those grounds.

Under The Delimitation Bill, 2026, the Delimitation Commission is granted extensive legal powers and a defined procedural framework to ensure it can effectively and independently carry out the readjustment of electoral boundaries.

1. Powers of the Commission

The Commission is designed to function with the authority of a judicial body to facilitate its information-gathering and decision-making processes:

• Civil Court Authority: In the performance of its functions, the Commission possesses all the powers of a civil court under the Code of Civil Procedure, 1908. This specifically includes the power to:
  • Summon and enforce the attendance of witnesses.
  • Require the production of any document.
  • Requisition any public record from any court or office.
• Information Gathering: The Commission can require any person to furnish information it deems useful or relevant to its considerations.
• Technical Assistance: It has the power to call upon specialized government officials and experts—including the Registrar-General and Census Commissioner, the Surveyor General of India, and GIS experts—all of whom are duty-bound to assist.
• Delegation of Power: The Commission may authorize any of its members to exercise its civil court powers. Any order or act done by an authorized member is considered an act of the Commission itself.
• Legal Finality: Once the Commission’s orders are published in the Gazette of India, they have the force of law and cannot be questioned in any court. This overriding effect applies notwithstanding any other existing laws.

2. Operational Procedures

The Bill provides the Commission with the flexibility to manage its internal operations while mandating transparency in its final outputs:

• Self-Determined Procedure: The Commission has the autonomy to determine its own procedure for conducting business.
• Decision-Making: If members have a difference of opinion, the opinion of the majority prevails. All acts and orders of the Commission are expressed based on this majority view.
• Operational Continuity: The Commission and any group of associate members can continue to act despite the temporary absence of a member or a vacancy in their ranks. Such proceedings cannot be invalidated because of these absences or vacancies.
• Secretariat Support: Its functions are discharged with the assistance of an ex officio Secretary (nominated from the Election Commission) and the staff of the Election Commission, all under the supervision of the Chairperson.

3. Public and Transparency Procedures

Before its orders become final, the Commission must follow a public-facing process:

• Publication of Proposals: It must publish its delimitation proposals in the Gazette of India and relevant State Gazettes. Importantly, it must also include any dissenting proposals from associate members if they request it.
• Public Sittings and Consultation: The Commission must specify a date for further consideration of its proposals and consider all objections and suggestions received. To facilitate this, it is required to hold one or more public sittings at places it deems fit within each State.
• Dissemination of Final Orders: Final orders must be published in the Gazette of India, State Gazettes, at least two vernacular newspapers, and through media like radio and television. Additionally, District Election Officers must display these orders in their offices for public notice.
• Parliamentary Oversight: After publication, every order must be laid before the House of the People and the respective State Legislative Assemblies.

Under The Delimitation Bill, 2026, seat readjustment is the core process of updating the number and boundaries of electoral constituencies to ensure equitable representation based on demographic changes.

The sources outline the following key aspects of seat readjustment:

1. The Mandate for Readjustment

The primary duty of the Delimitation Commission is to readjust the allocation of seats in the House of the People (Lok Sabha) and the Legislative Assemblies of States and Union territories. This includes:

• Determining the specific number of seats allocated to each State and Union territory in the House of the People.
• Assigning the total number of seats for each State’s Legislative Assembly.
• Dividing each region into single-member territorial constituencies.

2. The Basis: "Latest Census Figures"

The Bill emphasizes that all readjustments must be performed on the basis of the "latest census figures" published as of the date the Commission is constituted. The sources explain that this is necessary because current seat allocations are still tied to the 1971 census, while constituency boundaries are tied to the 2001 census. Readjustment is required to account for population growth and migration—particularly from rural to urban areas—which has led to varying population densities across constituencies.

3. Reservation and Rotation of Seats

A significant component of the 2026 readjustment exercise is the inclusion of new reservation mandates:

• SC and ST Reservations: The Commission must determine the number of seats reserved for Scheduled Castes (SC) and Scheduled Tribes (ST) based on their population proportion.
• Women’s Reservation: Following newer constitutional provisions, the Commission must reserve one-third of the total number of seats for women in both the House of the People and State Legislative Assemblies.
• Rotation: These reserved seats for women—including those for women within the SC and ST categories—must be allotted by rotation to different constituencies within the State or Union territory.

4. Technical Rules for Readjustment

The Bill provides specific rules to ensure the geographical and logical integrity of the new constituencies:

• Integral Multiple Rule: The total number of seats assigned to a State’s Legislative Assembly must be an integral multiple of the number of seats allocated to that State in the House of the People.
• Geographical Integrity: Constituencies should be compact areas that respect physical features, existing administrative boundaries, communication facilities, and public convenience.
• Alignment: Every Assembly constituency must be delimited so that it falls wholly within one Parliamentary constituency.
• Single Constituency States: If a State is allocated only one seat in the House of the People, the entire State forms a single territorial constituency for that purpose.

5. Implementation and Legal Effect

• Force of Law: Once the Commission’s readjustment orders are published in the Gazette of India, they carry the force of law and cannot be challenged in any court.
• Timeline of Operation: The readjusted representation and new boundaries apply to every election held after the publication of the final orders.
• Non-Interference with Existing Houses: The readjustment does not affect the representation of the current House of the People or Legislative Assembly until they are dissolved. Any bye-elections held before dissolution continue to use the previous boundaries.

One of the central objectives of The Delimitation Bill, 2026 is the formal implementation of women's reservation in India's legislative bodies, a mandate that significantly shapes the duties of the newly constituted Delimitation Commission.

The sources provide the following details regarding women's reservation:

1. Proportion and Scope of Reservation

The Bill mandates the reservation of one-third of the total number of seats for women. This reservation applies to:

• The House of the People (Lok Sabha).
• The Legislative Assemblies of every State and Union territory with a legislature.

2. Inclusion of SC and ST Women

The reservation is inclusive of women from marginalized communities. Specifically, the one-third reservation includes women belonging to the Scheduled Castes (SC) and the Scheduled Tribes (ST). The Delimitation Commission is tasked with specifically identifying and allocating these reserved seats.

3. The Rotation Mechanism

To ensure that representation is distributed over time, the Bill introduces a rotation system for these reserved seats:

• General Rotation: Seats reserved for women are to be allotted by rotation to different territorial constituencies within a State or Union territory.
• Specific SC/ST Rotation: Seats reserved for women belonging to the Scheduled Castes and Scheduled Tribes must be rotated specifically within the constituencies already reserved for those categories.

4. Constitutional and Objectives Context

The Bill seeks to fulfill requirements under several Constitutional Articles (239AA, 330A, 332A, and 334A). The stated purpose of these provisions is to:

• Enhance women’s representation in the House of the People and State Legislative Assemblies.
• Enable greater participation of women in policy-making and governance, which the Bill views as a key outcome of effective delimitation.

5. Implementation by the Delimitation Commission

The Delimitation Commission is the authority empowered to carry out the technical work of this reservation. Its duties include:

• Determining the exact number and location of reserved seats based on the "latest census figures".
• Managing the rotation of seats.
• Publishing proposals for these reserved constituencies and considering public objections or suggestions before finalizing them.

These reservations will apply to every general election and bye-election held after the final orders of the Delimitation Commission are published in the Official Gazette.

Under The Delimitation Bill, 2026, the process of redrawing electoral boundaries is guided by a specific set of delimitation principles designed to ensure that constituencies are logical, representative, and aligned with constitutional mandates.

The key principles outlined in the sources include:

1. Geographic and Administrative Cohesion

The Commission must follow specific physical and logistical criteria when determining the boundaries of territorial constituencies:

• Geographical Compactness: All constituencies must, as far as practicable, be geographically compact areas.
• Respect for Existing Boundaries: The delimitation process must have regard for the existing boundaries of administrative units.
• Physical and Social Factors: The Commission must consider physical features, existing facilities of communication, and general public convenience to ensure constituencies are practical for both administration and voters.

2. Structural Alignment

The Bill mandates a strict hierarchy and mathematical relationship between different types of legislative seats:

• Wholly Contained Constituencies: Every State Assembly constituency must be delimited so that it falls wholly within one Parliamentary constituency.
• Integral Multiple Rule: The total number of seats assigned to a State’s Legislative Assembly must be an integral multiple of the number of seats allocated to that State in the House of the People.

3. Principles for Reserved Category Seats

Specific principles govern the placement of seats reserved for Scheduled Castes (SC) and Scheduled Tribes (ST):

• SC Seat Distribution: Reserved seats for Scheduled Castes should be distributed in different parts of the State. They should be located, as far as practicable, in areas where the proportion of the SC population to the total is comparatively large.
• ST Seat Concentration: In contrast, seats reserved for Scheduled Tribes should be located in areas where the proportion of their population to the total is the largest.

4. Women's Reservation and Rotation

The 2026 Bill introduces a new set of principles regarding gender representation:

• One-Third Mandate: As nearly as may be, one-third of the total seats in the House of the People and State Legislative Assemblies must be reserved for women.
• The Principle of Rotation: A key procedural principle is that these reserved seats (including those for women within the SC and ST categories) must be allotted by rotation to different constituencies within the State or Union territory.
• Internal Rotation for SC/ST: For women belonging to Scheduled Castes and Scheduled Tribes, the rotation of their reserved seats must occur within the constituencies already reserved for those specific categories.

5. Demographic Foundation

The overarching principle for all readjustments is that they must be based on the "latest census figures" published at the time the Commission is constituted. This ensures that the delimitation reflects current population dynamics, addressing the "varying density of population" caused by growth and migration since the previous census-based allocations.

Under The Delimitation Bill, 2026, the publication and operation of delimitation orders are governed by strict procedures to ensure legal finality, wide public awareness, and a clear transition between old and new electoral boundaries.

The following details regarding these processes are outlined in the sources:

1. Requirements for Wide Publication

To ensure transparency and public access, the Commission is required to disseminate its final orders through multiple channels:

• Official Gazettes: Orders made under section 8 (readjustment of seats) and section 9 (delimitation of constituencies) must be published in the Gazette of India and the Official Gazettes of the States concerned.
• Mass Media: Simultaneously, these orders must be published in at least two vernacular newspapers and publicized via radio, television, and other available media.
• Local Notification: Every District Election Officer is mandated to affix the Gazette version of the orders relating to their specific jurisdiction in a conspicuous part of their office for public notice.

2. Legal Status and Finality

The Bill grants these orders significant legal authority once they are formalized:

• Force of Law: Upon publication in the Gazette of India, every order has the force of law.
• Non-Justiciability: The sources explicitly state that these orders cannot be called into question in any court.
• Overriding Effect: These orders apply in supersession of any other existing law, notification, or order that is inconsistent with the provisions of the Act regarding representation and delimitation.

3. Operational Timeline for Elections

The Bill defines exactly when the new boundaries and seat allocations take effect:

• Future Elections: The readjusted representation and delimitation apply to every election (both to the House of the People and State Legislative Assemblies) held after the publication of the orders in the Gazette of India.
• Existing Houses: Crucially, the new orders do not affect the representation of the current House of the People or a State Legislative Assembly until that House or Assembly is dissolved.
• Bye-elections: Any bye-election held to fill a vacancy in a House that existed on the date of the order's publication will continue to be held based on the old laws and boundaries.

4. Maintenance and Oversight

After the final orders are published, the Bill provides mechanisms for minor adjustments and parliamentary review:

• Correcting Errors: The Election Commission is empowered to issue notifications to correct printing mistakes or inadvertent errors in the orders.
• Updating Administrative Names: If the names or boundaries of districts or territorial divisions change, the Election Commission can update the orders accordingly, provided that the actual boundaries or extent of a constituency are not changed.
• Parliamentary Layout: Every final order and subsequent corrective notification must be laid before the House of the People and the relevant State Legislative Assemblies.

The Commission is expected to endeavor to complete and publish these orders within the specific term specified by the Central Government.

The financial provisions for The Delimitation Bill, 2026 are outlined in the "Financial Memorandum," which details how the establishment and operations of the Delimitation Commission will be funded.

The following points summarize the financial arrangements:

1. Source of Funding

The expenditure required for setting up the Commission and its ongoing operations will be met from the Consolidated Fund of India.

2. Administrative Responsibility

The total cost of the delimitation exercise will be borne by the Election Commission of India. This includes not only the direct costs of the Commission but also any other expenses incurred specifically for the purpose of delimitation.

3. Scope of Expenses

The financial provisions cover several specific categories of operational costs:

• Chairperson’s Compensation: This includes the salary and allowances for the Chairperson (who is or has been a Supreme Court Judge).
• Commission Operations: General expenses in connection with the working of the Commission are included.
• Staff and Assistance: The Commission functions with the assistance of an ex officio Secretary and employees of the Election Commission, as well as various technical experts and associate members (ten per state) who provide assistance, which contributes to the overall operational scope.

4. Estimated Expenditure

At the time of the Bill's introduction, the sources state that it is not possible to estimate precisely the total expenditure that will be incurred for the proposed Commission.

India Monthly Policy Review: May 2026

 In the Monthly Policy Review for May 2026, macroeconomic development is primarily characterized by the performance of industrial production and a series of policy interventions aimed at sustaining growth through investment, credit support, and labor reforms.

Industrial Production Trends

The core indicator of macroeconomic health during this period was the Index of Industrial Production (IIP), which grew by 4.8% in the fourth quarter (January-March) of 2025-26. This represents an improvement over the 4.0% growth recorded in the same period of the previous fiscal year.

The growth was driven by several key sectors:

• Manufacturing: This sector, which holds a dominant 78% weightage in the IIP, grew by 5.1% during the fourth quarter.
• Mining: Registered a growth of 4.3%, a significant increase from the 2.4% growth seen in the corresponding period of the previous year.
• Electricity: Grew by 2.7% over the quarter, though it faced a sharp slowdown in March 2026, registering only 0.82% growth compared to 7.5% in March 2025.

Industrial and Investment Support

To bolster this industrial momentum, several schemes were approved or extended:

• Emergency Credit Line Guarantee Scheme 5.0: The Cabinet approved this scheme to provide 100% guarantee coverage for MSMEs and 90% for non-MSMEs and airlines facing liquidity pressures as of March 2026.
• Scheme for Investment Promotion: This initiative was extended until 2030-31 with an outlay of Rs 996 crore to facilitate investor targeting and regulatory advisory services.
• BHAVYA Scheme: Guidelines were released for the Bharat Audyogik Vikas Yojna, which aims to develop 100 industrial parks between 2026 and 2032 to enhance the industrial ecosystem and infrastructure.

Financial Sector Reforms

Macroeconomic stability was further supported by changes in foreign investment and corporate regulations:

• Insurance FDI: Rules were amended to allow 100% Foreign Direct Investment (FDI) in the insurance sector under the automatic route, removing the previous 74% cap. Residency requirements for key management personnel were also relaxed.
• CSR and Social Finance: Subscription to zero coupon zero principal instruments issued by Not-for-Profit Organisations (NPOs) on social stock exchanges is now an eligible Corporate Social Responsibility (CSR) activity, allowing companies to spend up to 10% of their CSR budget on these philanthropic bonds.

Labor and Rural Development

The review also highlights structural shifts in the labor market and rural economy:

• Labour Codes: Rules were notified under four major labour codes, covering minimum wages, social security for gig and platform workers, and occupational safety. The rules for wages include the revision of variable dearness allowance twice a year based on the Consumer Price Index.
• Rural Employment: The Viksit Bharat — Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025 (VB G RAM G), which replaces MGNREGA, will come into effect on July 1, 2026. Draft rules specify that fund allocation to states will use 16th Finance Commission parameters, with wages paid via direct benefit transfer.

Agricultural Price Stability

In the agricultural sector, the government approved increases in Minimum Support Prices (MSP) for kharif crops for the 2026-27 season. While the MSP for paddy increased by 3%, other crops like jowar (9%) and sunflower (8%) saw higher increases to support farmer income and manage food inflation. Additionally, the Fair and Remunerative Price (FRP) for sugarcane was set at Rs 365 per quintal for the 2026-27 season.

In the Monthly Policy Review for May 2026, the primary development under the Law and Justice sector is a significant structural change to the nation's highest court, alongside several other legislative and committee-led initiatives that impact the legal landscape.

Expansion of the Supreme Court

The most direct development in Law and Justice is the issuance of the Supreme Court (Number of Judges) Amendment Ordinance, 2026, on May 16, 2026. This Ordinance amends the Supreme Court (Number of Judges) Act, 1956, to increase the total number of Supreme Court judges from 33 to 37. This move is aimed at addressing the judicial workload and enhancing the capacity of the apex court to handle its docket.

Legal and Regulatory Frameworks in Other Sectors

While specifically categorized under other sections, several developments in the May 2026 review carry significant legal and judicial implications:

• Judicial Oversight on Immigration: A High-Level Committee has been constituted under the chairmanship of Justice Prakash Prabhakar Navlekar (Retired) to study demographic changes resulting from illegal immigration. This committee is tasked with recommending legal mechanisms for deportation, strengthening border management, and improving coordination between central and state governments.
• Criminal Penalties in Sports: The Ministry of Youth Affairs and Sports released draft amendments to the National Anti-Doping Act, 2022. These amendments introduce strict criminal penalties, including imprisonment for up to five years for trafficking or administering prohibited substances to athletes. For offenses committed against minors or involving organized crime syndicates, the penalty can increase to 10 years of imprisonment.
• Labour Law Implementation: The legal framework for labor was further solidified with the notification of Rules under four major labour codes: the Occupational Safety, Health, and Working Conditions Code (2020), the Code on Social Security (2020), the Industrial Relations Code (2020), and the Code on Wages (2019). These rules establish the legal requirements for working hours, minimum wage calculation, and the procedures for industrial actions such as strikes or lock-outs.
• Corporate and Financial Regulation: The legal requirements for Corporate Social Responsibility (CSR) were amended to include subscriptions to zero coupon zero principal instruments issued by Not-for-Profit Organisations (NPOs). Additionally, rules regarding Foreign Direct Investment (FDI) in the insurance sector were amended to allow 100% foreign ownership, significantly altering the regulatory requirements for residency of key management personnel.

In the Monthly Policy Review for May 2026, the labour sector is marked by the notification of comprehensive rules under four landmark labour codes and significant structural changes in rural employment through a new mission.

Notification of Rules under Major Labour Codes

The Ministry of Labour and Employment has notified the Rules under four major codes that consolidate various labour laws: the Occupational Safety, Health, and Working Conditions Code (2020), the Code on Social Security (2020), the Industrial Relations Code (2020), and the Code on Wages (2019).

Key provisions across these codes include:

• Occupational Safety and Working Conditions: Weekly working hours are capped at 48 hours. Women can be employed before 6 AM or after 7 PM, provided there is written consent, adequate transportation, and CCTV surveillance. Additionally, employers in dock work and construction must provide free medical examinations for employees over 40 years of age.
• Social Security and the Gig Economy: New rules specify procedures for insurance, provident funds, and maternity benefits. Notably, gig and platform workers are now eligible for social security benefits if they meet specific engagement thresholds: at least 90 days with one aggregator or 120 cumulative days across multiple aggregators in the previous financial year.
• Industrial Relations: The rules outline the process for recognizing trade unions and constituting bi-partite bodies like Works Committees. They also mandate strict timelines for industrial changes: applications for lay-offs must be made at least 15 days in advance, retrenchment 60 days in advance, and closure 90 days in advance.
• Wage Regulation: Minimum wages will be calculated daily, with criteria to be specified by the central government. A variable dearness allowance will be revised twice a year (before April 1 and October 1) based on the Average Consumer Price Index for Industrial Workers. The central government will also fix a floor wage, to be revised at least every five years.

Transition in Rural Employment

A major development is the upcoming implementation of the Viksit Bharat — Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025 (VB-G RAM G), which will replace MGNREGA starting July 1, 2026.

• Wage Payments: All wages and unemployment allowances under this mission must be paid through direct benefit transfer to bank or post office accounts; cash payments are strictly prohibited except in extraordinary circumstances.
• Governance: The mission will be overseen by a National Level Steering Committee and a Central Council, the latter of which includes representatives from various ministries, including Labour and Employment.

International Labour Mobility

Macro-level labour developments also extended to international strategic partnerships during the Prime Minister's visits:

• UAE: Agreements were signed for the mobilisation, training, and employment of a skilled maritime workforce.
• Italy: A declaration of intent was signed to facilitate the mobility of nurses from India to Italy.
• Other Partnerships: Strategic dialogues with the Netherlands and Sweden also focused on the mobility of skilled workers, students, and researchers.

In the Monthly Policy Review for May 2026, rural development is centered on the transition to a new employment guarantee framework and the supporting infrastructure for food security and agricultural income.

The VB-G RAM G Act, 2025

The most significant development is the release of draft Rules for the Viksit Bharat — Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025 (VB-G RAM G). This Act is set to replace the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005, and will officially come into effect on July 1, 2026. Like its predecessor, it provides guaranteed wage employment to rural households.

Key features of the draft Rules include:

• Fund Allocation: The central government will determine a "normative allocation" of funds for each state using objective parameters recommended by the 16th Finance Commission for the distribution of central taxes. From the second year onward, a portion of this allocation will be linked to performance criteria, such as timely wage payments, compliance with social audits, and the percentage of completed works.
• Wage Payment Mechanism: To ensure transparency, all wages and unemployment allowances must be paid through direct benefit transfer (DBT) into bank or post office accounts. Cash payments are strictly prohibited, except in extraordinary circumstances.
• Governance and Oversight: The Act establishes a two-tier oversight structure:
  • National Level Steering Committee: Chaired by the Secretary of the Department of Rural Development, this body provides high-level oversight and advises on inter-ministerial coordination.
  • Central Council: Chaired by the Union Minister for Rural Development, this council monitors implementation and includes representatives from various ministries (Labour, Panchayati Raj, Agriculture, etc.) and state governments.

The Ministry of Rural Development has invited public comments on these draft Rules until June 21, 2026.

Broader Rural Economic Context

Beyond employment, other policy decisions in May 2026 directly impact rural livelihoods:

• Agricultural Support: The Cabinet approved increases in Minimum Support Prices (MSP) for kharif crops for the 2026-27 season. This includes a 3% increase for paddy and higher increases for crops like jowar (9%) and sunflower (8%). Additionally, the Fair and Remunerative Price (FRP) for sugarcane was set at Rs 365 per quintal for the 2026-27 season.
• Food Security Infrastructure: The SARTHAK-PDS umbrella scheme was extended until March 2031 with an outlay of Rs 25,530 crore. This scheme supports the intra-state movement of foodgrains and the automation of Fair Price Shops, which are critical for the rural Public Distribution System.
• Targeted Missions: A new Mission for Cotton Productivity was approved for 2026-2031, targeting 140 districts in 14 states to enhance high-yielding variety seeds and testing infrastructure.

In the Monthly Policy Review for May 2026, the Commerce and Industry sector is highlighted through strong industrial production figures, the launch of major infrastructure schemes, and a series of strategic international partnerships aimed at boosting investment and technological cooperation.

Industrial Production Performance

Macroeconomic indicators show a positive trend in industrial activity. The Index of Industrial Production (IIP) grew by 4.8% in the fourth quarter (January-March) of 2025-26, an improvement over the 4.0% growth seen in the same period the previous year.

• Manufacturing: This sector, which carries a 78% weightage in the IIP, led the growth at 5.1%.
• Mining and Electricity: These sectors registered growth of 4.3% and 2.7%, respectively, although electricity saw a significant slowdown in March 2026.

Key Industrial and Investment Schemes

Several policy interventions were approved or updated to support businesses and attract investment:

• Emergency Credit Line Guarantee Scheme (ECLGS) 5.0: The Cabinet approved this scheme to provide credit guarantees for eligible borrowers—including MSMEs and passenger airlines—facing short-term liquidity pressures. It provides 100% guarantee coverage for MSMEs and 90% for non-MSMEs and airlines.
• BHAVYA Scheme (Bharat Audyogik Vikas Yojna): Guidelines were released to support the development of 100 industrial parks between 2026 and 2032. The scheme utilizes Special Purpose Vehicles (SPVs) for implementation and offers financial assistance through equity via the National Industrial Corridor Development and Investment Trust (NICDIT).
• Scheme for Investment Promotion: This long-standing initiative was extended until 2030-31 with a financial outlay of Rs 996 crore. It focuses on investor targeting and providing support throughout the investment lifecycle, including regulatory advisory and project approvals.

Strategic International Partnerships

The review outlines several high-level diplomatic visits that resulted in commercial and industrial agreements:

• United Arab Emirates (UAE): Agreements were signed for strategic collaboration in oil and gas, the creation of a ship repair cluster, and defense industrial collaboration. Additionally, UAE entities are set to explore investments worth five billion USD in India.
• European Partnerships: Strategic partnerships were established or elevated with Italy (defense industrial roadmap and maritime transport), the Netherlands (semiconductors and renewable energy), and Sweden (next-generation economic partnership and emerging technologies).
• Critical Minerals: India and the United States signed a framework to secure supply chains for mining and processing critical minerals and rare earths, covering everything from recycling to related investments.

Sector-Specific Missions

To enhance competitiveness in specific industries, the government approved the Mission for Cotton Productivity for 2026-2031. With an outlay of Rs 5,659 crore, the mission aims to achieve self-sufficiency and increase competitiveness in global textile markets by improving seed quality and testing infrastructure.

In the Monthly Policy Review for May 2026, the finance sector saw several regulatory updates from the Ministry of Finance, the Reserve Bank of India (RBI), and the Securities and Exchange Board of India (SEBI), alongside new rules for corporate social responsibility and credit support.

Foreign Direct Investment (FDI) in Insurance

The Ministry of Finance notified the Foreign Exchange Management (Non-debt Instruments) (Second Amendment) Rules, 2026, which significantly liberalize the insurance sector.

• Removal of Investment Ceilings: The previous 74% cap on foreign investment in insurance companies and intermediaries has been removed, allowing 100% FDI under the automatic route. However, foreign investment in the Life Insurance Corporation of India (LIC) remains capped at 20%.
• Relaxation of Residency Requirements: Previous rules required a majority of the Board of Directors and Key Management Persons (KMPs) to be resident Indian citizens. The new rules relax this, requiring only one person among the Chairperson of the Board, the Managing Director, or the Chief Executive Officer to be a resident Indian citizen.

Regulation of Loan Recovery Agents

The RBI has proposed draft amendments to the conduct of regulated entities regarding loan recovery to protect borrowers.

• Technology Restrictions: Lending entities are prohibited from using technology to disable a borrower’s mobile device as a recovery mechanism, unless the loan specifically financed that device. Even then, the device cannot be locked until the loan is 90 days past due and multiple notices have been served.
• Grievance Redressal: Cases cannot be forwarded to recovery agents until any lodged grievances are disposed of.
• Notice and Certification: Borrowers must receive at least one day's notice (via SMS/email) or three days' notice (via letter) before an agent's first in-person visit. Additionally, all recovery agents must obtain mandatory certification from the Indian Institute of Banking and Finance.

Mutual Fund Reforms

SEBI released a draft circular to enable third-party payments in mutual funds under specific conditions.

• Employer Payments: Asset Management Companies (AMCs) may now accept consolidated payments for investments through salary deductions for employees of listed or EPFO-registered companies.
• Commission and Donations: The circular proposes allowing distributors to receive mutual fund units in lieu of cash commissions and permits investors to donate part of their returns or subscriptions to NGOs.
• Anti-Money Laundering: To mitigate risks, AMCs must implement safeguards including KYC for both payees and beneficiaries and maintaining auditable electronic fund trails.

CSR and Social Finance

The Ministry of Corporate Affairs amended CSR rules to include subscriptions to zero coupon zero principal (ZCZP) instruments issued by Not-for-Profit Organisations (NPOs) on social stock exchanges.

• Investment Limit: Companies can spend up to 10% of their annual CSR budget on these philanthropic bonds.
• Exemptions: Subscribing companies are exempt from undertaking impact assessments for projects funded through these instruments.

Credit and Fiscal Allocation

Broader financial measures in the review include:

• Emergency Credit Line Guarantee Scheme 5.0: This scheme provides 100% guarantee coverage for MSMEs and 90% for non-MSMEs and passenger airlines for additional credit to manage liquidity pressures.
• Rural Fund Allocation: Under the new VB-G RAM G Act, the normative allocation of funds to states will be determined using parameters recommended by the 16th Finance Commission for the distribution of central taxes.

In the Monthly Policy Review for May 2026, developments in agriculture and food were focused on price support for farmers, a new mission to boost specific crop productivity, and the extension of major food distribution infrastructure.

Minimum Support Prices (MSP) for Kharif Crops

The Union Cabinet approved increases in the Minimum Support Price (MSP) for kharif crops for the 2026-27 marketing season. The MSP is the guaranteed price at which the central government procures crops from farmers.

• Paddy (Common): Increased by 3% to Rs 2,441 per quintal.
• Higher Increases: Significant increases were seen in Jowar (9%), Sunflower Seed (8%), Soybean (7%), and Cotton (7%).
• Other Crops: Small adjustments were made to crops like Moong (0.1% increase) and Maize (0.4% increase).

Sugarcane Pricing

For the 2026-27 sugar season, the government set the Fair and Remunerative Price (FRP) for sugarcane at Rs 365 per quintal, based on a recovery rate of 10.25%.

• Premiums and Reductions: Farmers receive a premium of Rs 3.56 per quintal for every 0.1% increase in the recovery rate above 10.25%. Conversely, the price is reduced by the same amount for every 0.1% decrease, though no further deductions are made if the recovery rate falls below 9.5%.

Mission for Cotton Productivity

A new Mission for Cotton Productivity was approved for the period of 2026-27 to 2030-31, with a financial outlay of Rs 5,659 crore. The mission's objectives include:

• Developing high-yielding variety seeds that are resistant to pests and diseases.
• Scaling up modern crop production technologies.
• Improving the infrastructure for quality testing.
• Promoting the export of high-quality cotton to enhance global competitiveness. Initially, the mission will target 140 districts across 14 cotton-producing states.

Food Distribution and SARTHAK-PDS

The Cabinet approved the continuation of the SARTHAK-PDS (Scheme for Assistance in Ration Transport and Handling-Income with Automation in PDS) as an umbrella scheme until March 2031.

• Purpose: The scheme provides financial support for the intra-state movement of foodgrains and the margins for Fair Price Shop (FPS) dealers under the National Food Security Act, 2013.
• Modernization: It also funds reforms through technology and automation in the Public Distribution System (PDS).
• Outlay: The estimated central outlay for this extension is Rs 25,530 crore.

International Cooperation

The review also notes international strategic partnerships that involve the agricultural sector:

• Italy: Agreements were signed regarding agriculture and marine products.
• Netherlands: Both nations agreed to expand cooperation specifically in the field of agriculture as part of their strategic partnership.

In the Monthly Policy Review for May 2026, developments in energy and infrastructure are characterized by a major new scheme for coal gasification, initiatives to develop industrial parks, and strategic international collaborations for energy security and specialized transport.

Energy Sector Developments

Policy focus in the energy sector during May 2026 spanned industrial output trends, new financial incentives for coal, and international partnerships for renewable and strategic energy.

• Electricity Generation: In the fourth quarter (January-March) of 2025-26, the electricity sector saw a growth of 2.7%. However, there was a significant slowdown in March 2026, where growth was only 0.82% compared to 7.5% in March 2025.
• Surface Coal Gasification: The Union Cabinet approved a new scheme to promote surface coal and lignite gasification, which converts these resources into combustible synthetic gas. The scheme has a total estimated outlay of Rs 37,500 crore and offers financial incentives of up to 20% of the cost of plant and machinery for new projects, selected through competitive bidding.
• Strategic Energy Partnerships:
  • UAE: India signed agreements for strategic collaboration on crude oil, liquid natural gas (LNG), and petroleum natural gas storage. Both countries will explore storing crude oil in the UAE as part of the Indian strategic petroleum reserve.
  • Renewable Energy: Strategic partnerships were established with the Netherlands for renewable energy and with Norway for ocean energy, including offshore wind.
  • Green Transition: Cooperation on "green transition" was a key point of discussion during bilateral talks with Sweden.

Infrastructure and Transport

Infrastructure development in May 2026 focused on industrial ecosystems, maritime facilities, and regulatory shifts in transport.

• BHAVYA Scheme (Industrial Infrastructure): Guidelines were released for the Bharat Audyogik Vikas Yojna, which targets the development of 100 industrial parks by 2031-32. These parks will be evaluated based on multimodal connectivity and quality of infrastructure, with the central government providing equity through the National Industrial Corridor Development and Investment Trust (NICDIT).
• Transport Regulations: The Central Motor Vehicles (Sixth Amendment) Rules, 2026, introduced several changes to safety and registration:
  • Vehicles not declared fit within 180 days of an initial failure will be categorized as end-of-life vehicles.
  • Fitness tests must now be captured in geo-tagged videos and uploaded to a central mobile application.
  • Mandatory checks during fitness tests have been expanded to include vehicle location tracking devices and speed governors.
• Maritime Infrastructure: Agreements were signed with the UAE to set up a ship repair cluster and with Italy to cooperate on maritime transport and ports.
• Specialized Construction: India and Norway agreed to collaborate on consultancy services for tunnel construction, slope stability, and geomodelling.
• Food Distribution Infrastructure: The continuation of the SARTHAK-PDS umbrella scheme until 2031 includes an outlay of Rs 25,530 crore to support the intra-state movement of foodgrains and the automation of the Public Distribution System (PDS) through technology.

In the Monthly Policy Review for May 2026, developments in Home Affairs and Sports focus on managing demographic security and strengthening the legal framework against doping in professional athletics.

Home Affairs: Addressing Illegal Immigration

The central government has constituted a High-Level Committee, chaired by Retired Justice Prakash Prabhakar Navlekar, to study demographic changes resulting from illegal immigration and other abnormal factors. The committee's mandate includes:

• Factor Identification: Identifying the underlying reasons behind these demographic shifts.
• Population Analysis: Analyzing structural changes in the population at the level of specific religious or social communities.
• Policy Recommendations: Proposing legal and administrative mechanisms for the deportation of illegal immigrants, methods to strengthen border management, and ways to enhance coordination between central and state governments.

The committee is expected to submit its report within one year, though the Ministry of Home Affairs has the authority to extend this tenure by up to six months if required.

Sports: Strengthening Anti-Doping Regulations

The Ministry of Youth Affairs and Sports has released draft amendments to the National Anti-Doping Act, 2022, for public consultation, with a focus on introducing strict criminal penalties for doping-related offenses.

Key features of the proposed amendments include:

• Imprisonment for Trafficking and Administration: The trafficking, selling, or prescribing of prohibited substances, as well as their administration to an athlete, will be punishable by up to five years of imprisonment, a fine of up to two lakh rupees, or both.
• Enhanced Penalties for Aggravated Offenses: If these offenses involve minors, are conducted commercially, or are carried out by organized crime syndicates, the penalties increase significantly to up to 10 years of imprisonment and a fine of up to five lakh rupees.
• Regulation of Promotion: The advertising or paid promotion of prohibited substances or methods in the context of sports doping will be punishable by up to one year of imprisonment, a fine of up to one lakh rupees, or both.

Public comments on these draft amendments are invited until June 18, 2026.

In the Monthly Policy Review for May 2026, external affairs are highlighted by a series of high-level bilateral visits and the elevation of several diplomatic relationships to strategic partnerships, focusing on technology, energy security, and labor mobility.

Elevation of Strategic Partnerships

Several key bilateral relationships were formally elevated during May 2026:

• Italy: The diplomatic relationship was elevated to a special strategic partnership. This included roadmaps for defence industrial and higher education cooperation.
• Netherlands: The bilateral relationship was elevated to a strategic partnership, supported by a newly signed India-Netherlands Strategic Partnership (2026-2030) roadmap.
• Sweden: A strategic partnership was established based on a joint action plan with four pillars: stability and security dialogue, a next-generation economic partnership, emerging technologies/trusted connectivity, and people/planet resilience.

Technology and Innovation

Cooperation in advanced technology was a central theme across multiple regions:

• Semiconductors: India and the Netherlands agreed to expand cooperation in the semiconductor industry.
• Supercomputing: India and the UAE agreed to establish a supercomputing cluster.
• Emerging Technologies: Discussions with Sweden focused on innovation and trusted connectivity, while the India-Nordic Summit touched on Artificial Intelligence and research.
• Space: Cooperation with Norway was expanded to include the exploration and uses of outer space.

Energy and Resource Security

Securing supply chains for energy and raw materials was a priority in several agreements:

• Critical Minerals: India signed a framework with the United States for "Securing of Supply in the Mining and Processing of Critical Minerals and Rare Earths," covering everything from mining to recycling. Similar agreements regarding critical minerals were signed with Italy and the Netherlands.
• Oil and Gas: Agreements with the UAE focused on strategic collaboration for crude oil, LNG, and petroleum gas storage. Notably, both countries will explore storing crude oil in the UAE as part of the Indian strategic petroleum reserve.
• Renewable Energy: Cooperation was expanded with the Netherlands in renewable energy and with Norway in ocean energy, specifically offshore wind.

Defence and Maritime Cooperation

• Industrial Collaboration: Defence industrial roadmaps and collaboration agreements were established with both the UAE and Italy.
• Maritime Infrastructure: Agreements were reached with the UAE for a ship repair cluster and with Italy regarding maritime transport and ports.

Labor, Migration, and Mobility

Several agreements addressed the international movement of students and professionals:

• Healthcare: India and Italy signed a declaration of intent to facilitate the mobility of nurses.
• Skilled Workforce: Agreements with the UAE focused on training and employing a skilled maritime workforce.
• General Mobility: Mobility of students, researchers, and skilled workers was a key discussion point with the Netherlands and Sweden.

Multilateral Engagement

The Third India-Nordic Summit was held in Oslo, with participants from India, Denmark, Norway, Finland, Iceland, and Sweden. The summit addressed global issues including multilateralism at the UN, developments in Europe and West Asia, and international climate action.