The Union Cabinet on Wednesday cleared a series of major economic and infrastructure decisions as India faces rising global uncertainty linked to the ongoing West Asia conflict. Prime Minister Narendra Modi chaired the high-level meeting, where the government focused on boosting self-reliance, supporting farmers, improving transport connectivity and strengthening energy security. Union Minister Ashwini Vaishnaw said the decisions were aimed at protecting India’s economy during difficult geopolitical conditions while also creating long-term growth opportunities across agriculture, energy and infrastructure sectors.
4 Big Decisions Taken By Cabinet
The Cabinet approved four major measures covering agriculture, coal gasification, railway expansion and airport modernisation. The government said these projects are designed to reduce import dependence, create jobs, improve logistics and support economic growth at a time when global fuel and trade pressures are increasing.
MSP Hike For Kharif 2026-27 Crops
The government announced an increase in Minimum Support Prices (MSP) for 14 Kharif crops for the 2026-27 marketing season. Officials said the move could benefit millions of farmers across the country and lead to an estimated payout of nearly Rs 2.60 lakh crore.
According to the official statement, sunflower seed saw the highest MSP increase of Rs 622 per quintal. Cotton prices were increased by Rs 557 per quintal, while nigerseed and sesamum also received major hikes.
The Centre expects total procurement during the season to touch around 824.41 lakh metric tonnes. The government believes the MSP increase will encourage farmers to continue cultivation despite rising input costs and global uncertainty.
Rs 37,000 Crore Coal Gasification Push
Another major decision was the approval of a Rs 37,000 crore coal gasification scheme. The project aims to convert coal into synthetic natural gas and other chemicals that can be used for power generation, fertilisers and industrial purposes.
The government plans to gasify nearly 75 million tonnes of coal with expected investments of around Rs 3 lakh crore in the coming years. Officials said the move is important because India still imports large quantities of LNG, ammonia, methanol and urea.
The Cabinet believes better use of domestic coal reserves can reduce import bills and improve energy security during global fuel crises.
Ahmedabad-Dholera Semi High-Speed Rail Project Approved
The Cabinet also approved the Sarkhej-Dholera Semi High-Speed Double Line railway project in Gujarat at a cost of Rs 20,667 crore. The project will add around 134 kilometres to India’s railway network and is expected to be completed by 2030-31.
Officials said the rail line will improve connectivity between Ahmedabad, Dholera Airport and the Lothal National Maritime Heritage Complex. Around 284 villages and nearly five lakh people are expected to benefit from the project.
The government described it as India’s first semi high-speed railway project based on indigenously developed technology.
Nagpur Airport To Be Upgraded
The Cabinet also cleared plans for the expansion and modernisation of Nagpur International Airport under the MIHAN project. The government approved the extension of the Airports Authority of India land lease to support long-term airport development.
Officials said the airport is being developed into a world-class aviation and cargo hub. The final target is to increase the airport’s capacity to handle nearly 30 million passengers annually.
The government believes the project can help transform Nagpur into a major logistics and transportation centre for central India.
