India’s pension business has immense potential to grow due to the fact that a large segment of its population has no access to a retirement fund. Further, the passage of the PFRDA Act by the Parliament signals a paradigm shift in the way the pension system will be regulated in the country. The CII-EY report highlights that pensions business in India presents an attractive opportunity because of India’s changing demographics, an inadequate pillar one (Government funded) pensions system, and the presence of a vibrant insurance and funds management sector.
The report details the importance of pension funds in supporting funding of long-term infrastructure projects crucial for the emerging Indian economy, bringing in stability to capital markets and helping its elderly population to be financially independent. It also discusses policy, regulatory and business-level solutions towards the building of a more robust pension system.
The study was released at the 1st Pensions Summit organized by CII on 27 November, 2013 at Mumbai.