Indian Economy's Projection and Atal Pension Yojana (APY)
The sustained growth in the Indian economy is projected for the next 15-20 years, which is expected to increase market returns under the government's flagship Atal Pension Yojana (APY).
APY Investment Strategy and Returns
- The Pension Fund Development and Regulatory Authority (PFRDA) has increased equity investments from APY contributions to 25%, up from 15%.
- This change aims to leverage India's economic growth to enhance market returns.
- If market returns are favorable, reliance on government viability gap funding is expected to decrease.
Performance and Structure of APY
- Launched in May 2015, the APY manages assets worth over ₹48,000 crores.
- It has delivered a compound annual growth rate (CAGR) of 9.12% since its inception.
Enrollment Statistics
- APY recorded 11.7 million enrollments in 2024-25.
- This marks the third consecutive year of enrollments exceeding 10 million.