New pension plan will deepen financial markets

Overview

The defined contribution New Pension Scheme that was implemented nationwide in May 2009 will contribute to India’s financial development by diversifying savings into financial instruments such as equities and bonds rather than bank deposits. It will help extend pension coverage to the 88 per cent of the workforce that lack old age security and will do so without placing an unsustainable fiscal burden on the centre and state governments. The increased accumulation of long-duration...