India’s pension scheme lags in terms of coverage, contribution
India's Indira Gandhi National Old Age Pension Scheme is facing criticism for stagnant coverage and low monthly payouts that have not been adjusted since 2007. Experts argue the program requires a significant overhaul to meet the needs of the elderly population.
Why it matters
The adequacy of social safety nets is critical for an aging population, particularly in developing economies with limited private retirement savings.
The Indira Gandhi National Old Age Pension Scheme (IGNOAPS) — the Government of India’s flagship cash assistance scheme for the elderly under its National Social Assistance Programme (NSAP) — is in dire need of a revamp as it remains frozen in time, since 2007, both in terms of the sum of ₹200 it offers per person per month and the roughly 2.2 crore beneficiaries it covers. The States and Union Territories (UTs) add their own contributions, ranging from ₹150 to ₹2,000, on top of the ₹200 offered by the Union government for the 60-plus age group or the ₹500 it offers for the 80-plus category.
The article relies on policy analysis and data to critique the current state of a government program.
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