News

India’s pension ecosystem needs a gradual expansion of both contributory and non contributory schemes to ensure wider coverage for gig workers informal sector employees and rural households the Economic Survey 2025 26 on Thursday said.

The Survey said stronger engagement with state governments cooperatives farmer networks and gig platform companies is essential to ensure last mile delivery of pension benefits.

According to the survey, India follows a multi tier pension framework led by the market linked National Pension System, the government backed Unified Pension Scheme launched in 2025 and other schemes such as the Employees Provident Fund and the Atal Pension Yojana. The Pension Fund Regulatory and Development Authority has built the foundation for a broad based pension system by offering multiple options across age groups and income levels the Survey noted.

The Survey said regulators, including the PFRDA and the Insurance Regulatory and Development Authority of India have introduced reforms aimed at improving financial inclusion and extending social protection to underserved sections.

Also Read: From Rs 3 Lakh to 4 Lakh in 10 Days: Silver rally signals rising global risks, says Economic Survey

As of December 31, 2025, the NPS had 211.7 lakh subscribers with assets under management worth Rs 16.1 lakh crore the Survey said. Over the past decade subscriber growth averaged 9.5 per cent annually while assets expanded at a CAGR of 37.3 per cent.

The Atal Pension Yojana has recorded rapid expansion since its launch in 2016 with subscriptions growing at a CAGR of 43.7 per cent and assets under management rising at 64.5 per cent. Despite these gains the Survey highlighted persistent awareness gaps, especially among low income and rural households who continue to have limited exposure to long term retirement products.

As per the Survey, recent initiatives such as simplified onboarding digital KYC flexible contribution structures NPS Lite variants and targeted products for gig workers farmers and minors are helping bridge long standing coverage gaps. It stressed the need for better coordination between the EPFO the PFRDA and state level pension bodies to reduce fragmentation improve portability and streamline governance.

Expanding interoperability across pension schemes will help workers retain benefits as they move between sectors or migrate across states the Survey added.

The Survey noted structural changes in the insurance sector particularly in non life insurance where health insurance accounts for 41 per cent of the segment. According to the survey, India has 26 life insurers, 26 non life insurers, seven health insurers, and two specialised insurers supported by a distribution network of over 83 lakh agents.

The Survey said GST exemption on life insurance and individual health insurance policies has reduced costs for policyholders and improved affordability.

The Survey said 56.2 crore people aged 15 years and above were employed in the second quarter of FY26 reflecting the creation of around 8.7 lakh new jobs compared to the previous quarter. According to the Survey the Annual Survey of Industries showed a 6 per cent year on year increase in employment in organised manufacturing during FY24 translating into over 10 lakh additional jobs. The Survey noted that the Labour Codes have formally recognised gig and platform workers expanding access to social security welfare funds and benefit portability.

As of January 2026 over 31 crore unorganised workers were registered on the e Shram portal with women accounting for more than 54 per cent of total registrants the Survey said.

The National Career Service platform connects job seekers employers and training providers with over 59 million registered job seekers and 5.3 million job providers and has mobilised nearly 80 million vacancies. According to the Survey the government plans to upgrade 1,000 government ITIs including 200 hub ITIs and 800 spoke ITIs through smart classrooms modern laboratories and industry aligned courses.

Also Read: DII stake hits all-time high as foreign holdings shrink to 13-year low: Economic Survey

The global economic environment remains fragile due to geopolitical tensions trade fragmentation and financial vulnerabilities. Despite this India’s performance stands out with real GDP growth estimated at 7.4 per cent in FY26 making it the fastest growing major economy for the fourth consecutive year.

The Survey said prudent fiscal management has strengthened confidence in India’s macroeconomic framework leading to sovereign credit rating upgrades in 2025. Centre’s revenue receipts rose to 9.2 per cent of GDP in FY25 supported by improved tax compliance and higher non corporate tax collections the Survey noted.

According to the Survey gross GST collections during April to December 2025 stood at Rs 17.4 lakh crore registering year on year growth of 6.7 per cent. The Survey added that India has reduced its general government debt to GDP ratio by over seven percentage points since 2020 while maintaining high public investment.