Private Sector Fuels Growth of NPS Assets

Private Sector Fuels Growth of NPS Assets

Sub: Eco

Sec: Inflation and unemployment

Overall NPS Growth:

• As of July 20, National Pension System (NPS) assets reached ₹12.69 lakh crore, reflecting a 28.33% year-on-year (YoY) increase, according to the latest PFRDA data.
• In the fiscal year 2023-24, NPS assets saw a robust 30.5% YoY growth, reaching ₹11.73 lakh crore by the end of March 2024.

Private Sector Contribution:

• The private sector significantly contributed to this growth, with NPS assets in this sector growing by a remarkable 39.62% YoY as of July 20, totaling ₹2.52 lakh crore.
• The number of subscribers in the private sector rose to 57.44 lakh, an increase of 9.12 lakh YoY.

Atal Pension Yojana (APY) Performance:

• APY assets reached ₹38,827 crore as of July 20, representing a 31.03% increase.
• The Pension Fund Regulatory & Development Authority (PFRDA) onboarded 1.2 crore APY subscribers in the fiscal year 2023-24, with a target of 1.3 crore for the current fiscal year.
• So far, there has been a net addition of approximately 20 lakh APY subscribers this fiscal year.

Future Projections:

• PFRDA stated that the pension regulator aims to reach overall NPS assets of ₹15 lakh crore by March 2025.
• New registrations for the National Pension Scheme and APY subscribers till July 23 in the current fiscal year stood at 2,58,957.

These points highlight the robust growth in NPS assets, particularly driven by the private sector, along with the expansion of APY, indicating strong participation and confidence in India’s pension schemes.