The Economic Survey 2025-26 highlights the importance of expanding India’s pension ecosystem through both contributory and non-contributory schemes. Engaging with various entities like state governments, cooperatives, farmer networks, and gig-platform companies can enhance the reach of these schemes. The Pension Fund Regulatory Development Authority (PFRDA) has set the stage for a dynamic pension system, offering diverse options to a wide population range.
India’s pension landscape is characterized by a multi-tiered system, with prominent schemes such as the National Pension System (NPS), Unified Pension Scheme (UPS), Employees’ Provident Fund (EPF), and Atal Pension Yojana (APY) ensuring broad coverage. Regulatory bodies like the PFRDA and the Insurance Regulatory and Development Authority of India (IRDAI) have worked on reforms to promote financial inclusion and protect underserved segments.
The Survey emphasizes the necessity of better coordination among EPFO, PFRDA, and state-level pension bodies to enhance efficiency and governance. With 211.7 lakh NPS subscribers and assets worth Rs 16.1 crore as of December 31, 2025, the system has shown steady growth. Subscriptions to APY have surged at a remarkable rate, indicating a positive trend in pension participation.
Efforts to bridge awareness gaps among low-income and rural households have been visible through initiatives like simplified onboarding, APY outreach campaigns, and tailored products for specific groups. The Survey suggests enhancing interoperability across schemes to facilitate seamless portability for workers changing sectors. India’s pension system is poised for inclusive growth, aligning with global standards and best practices.
Structural changes in the non-life insurance sector, particularly the significant role of health insurance, are evident. The exemption of GST on life and individual health insurance policies has eased the financial burden on policyholders, making insurance services more accessible. The insurance industry, supported by a vast network of distributors, plays a crucial role in providing financial security to individuals and families.
