Informist, Wednesday, Oct. 1, 2025

 

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--CEA: Govt committed to boosting domestic econ amid global pressures
--CEA: Govt putting in efforts to boost savings in econ 
--CEA: Robust savings, employment to aid pension growth in econ 
--Banking secy: Seeing investment interest in pension low in India
--Banking secy:Seeing more inflow into other saving instruments over pension 
--Banking secy: See challenges in prudent pension fund mgmt 
--Banking secy: Need to add more informal sector subscribers to pension 
--Banking secy: Need to add more non-govt subscribers to pension 
--Banking secy: Recent reforms to create room for pension sector boom

 

NEW DELHI – India's investment in pension plans continues to be low with more inflows seen going into other savings instruments, Department of Financial Services Secretary M. Nagaraju said Wednesday. The government has created adequate room for the pension sector to grow and now we need to look at ways in which more inflows can be directed towards pension savings, he said at the Pension Fund Regulatory and Development Authority's event on NPS Diwas.

 

In the current financial year, there have been dual tax bonanzas in the form of income tax relief announced in the Budget for 2025-26 (Apr-Mar) and the recent sweeping goods and services tax reforms. Both moves are expected to result in savings of over INR 2.50 trillion annually, Prime Minister Narendra Modi had said on Sept. 21. These reforms will help deepen the pension sector, Nagaraju said, adding that more disposable income will mean more savings which could be directed towards pension plans.

 

Chief Economic Adviser to the Government V. Anantha Nageswaran, who was also at the event, said the government is making all efforts, including structural reforms like GST rate rationalisation, to boost the domestic economy amidst exogenous pressures. He said the government's reforms are directed at boosting savings in the economy. Agreeing with Nagaraju, he said robust savings and employment generation--which is a function of economic activity--will lead to the growth of pension in the economy. According to data from the NPS Trust, the total assets under management under the National Pension System was INR 15.48 trillion as of Aug. 31.

 

Nagaraju said that while efforts to popularise pension plans and improve their penetration in the economy continue, challenges persist. A key challenge relates to prudent pension fund management, he said, without going deeper into the subject. He also said fund managers and the PFRDA must look to launch newer, more bespoke products to accommodate the evolving needs of the sector. Subscribers from the informal and the non-government sectors also need to be added to the National Pension System, he said.  End

 

Reported by Priyasmita Dutta

Edited by Rajeev Pai

 

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