Finance minister Nirmala Sitharaman on Wednesday said that the success of Atmanirbhar Bharat, a self-reliant India, depends as much on financially self-reliant households as it does on industry, arguing that robust pension and retirement solutions must become the centerpiece of India’s social security framework.
Speaking at a conference hosted by the Pension Fund Regulatory and Development Authority (PFRDA) in the national capital, the finance minister said the recent reforms were aimed at addressing both the supply and demand sides of India’s pension framework, from the industry as well as the consumer perspective.
Reforms to strengthen NPS
India’s pension landscape is undergoing a sweeping overhaul, with reforms to NPS that promise greater flexibility, transparency, and accessibility for millions of subscribers. Shaped by provisions in the 2024 Union Budget and subsequent regulations, the changes effective October 1, 2025, allow non-government subscribers to invest up to 100% of their contributions in equities, manage multiple schemes under a single account, and benefit from faster settlement cycles.
Under the new framework, pension funds can design customized schemes tailored to different risk appetites, while revised charges for central record-keeping agencies (CRAs) and updated fees for government subscribers seek to balance sustainability with efficiency.
The finance minister reiterated that the introduction of the NPS in 2004 by the then NDA government brought a crucial transition to a sustainable, sustainable, defined contribution pension framework.
