New Delhi [India], March 28: The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved an additional instalment of Dearness Allowance (DA) for Central Government employees and Dearness Relief (DR) for pensioners, effective from January 1, 2025. The hike, set at 2% over the existing 53% of Basic Pay or Pension, aims to offset the impact of inflation.
Addressing the media after the cabinet meeting, Information and Broadcasting Minister Ashwini Vaishnaw stated that the decision will benefit approximately 48.66 lakh Central Government employees and 66.55 lakh pensioners. The financial burden on the exchequer due to the increase in DA and DR is estimated at 6,614.04 crore annually. The hike follows the formula recommended by the Seventh Central Pay Commission.
Boost to Electronics Manufacturing Sector
In another significant move, the Union Cabinet approved the Electronics Component Manufacturing Scheme, allocating 22,919 crore to strengthen India’s self-reliance in the electronics supply chain. The initiative aims to attract ₹59,350 crore in investments, drive ₹4,56,500 crore worth of production, and create 91,600 direct jobs, along with numerous indirect employment opportunities.
The scheme is designed to enhance domestic value addition, boost local manufacturing capacity, and integrate Indian companies into global supply chains. With electronics being one of the fastest-growing global industries, the initiative is expected to play a crucial role in India’s economic and technological development.