Source: The Hindu | p.11 | Tags: 8 June 2026, GS2, Social Justice, Vulnerable Sections, Welfare Schemes
Context: India’s Pension Scheme Lags in Coverage and Contribution
The Indira Gandhi National Old Age Pension Scheme suffers from low pension amounts, stagnant coverage and erosion of real value due to inflation.
National Social Assistance Programme: Basics
- Launched: 1995.
- Ministry: Ministry of Rural Development.
- Type: Centrally Sponsored Scheme.
- Objective: Social assistance to elderly, widows and persons with disabilities from poor households.
Components of NSAP
- Indira Gandhi National Old Age Pension Scheme
- Indira Gandhi National Widow Pension Scheme
- Indira Gandhi National Disability Pension Scheme
Indira Gandhi National Old Age Pension Scheme
Age 60–79 years
- Centre provides ₹200 per month.
Age 80 years and above
- Centre provides ₹500 per month.
States / Union Territories
- Provide additional top-ups.
Key Findings
- Central contribution has remained unchanged since 2007.
- Beneficiaries remain around 2.2 crore, despite a rapidly growing elderly population.
- Real value of ₹200 has fallen from ₹200 in 2013 to about ₹99 today due to inflation.
- To restore the original purchasing power, assistance should be about ₹353 per month.
- Over 95% beneficiaries cited rising prices as the main concern.
- Over 80% reported that the pension is insufficient for basic daily needs.
- Ministry of Rural Development estimates eligible beneficiaries may reach around 20 crore by 2030.
