The Lok Sabha on Wednesday has passed the Pension Fund Regulatory and Development Authority (PFRDA) Bill 2011, an important economic legislation that will attract foreign investment in the sector.
The Bill allows 26% foreign investment in the Pension sector
Pension as a whole is a genuine requirement in a country like India. While its young population is a positive factor, in the long term the absence of a stable pension segment can be a major deterrent to an already strained economy. This is why it a strong and viable pension segment - especially for individuals to opt for, is critical for the economy. Hence this move in the right direction, Dr. P. Nandagopal, MD & CEO, IndiaFirst Life Insurance, said.
However, there is still a long way before we can rest with a strong pension segment, he added.