news

한어Русский языкEnglishFrançaisIndonesianSanskrit日本語DeutschPortuguêsΕλληνικάespañolItalianoSuomalainenLatina

On August 26, Bloomberg reported that India will implement a new pension system to ensure that federal government employees will receive a pension based on a certain percentage of their basic salary after retirement.

According to the Indian government announcement, the new pension system will be officially implemented in April next year. Under the plan, employees who have served the government for at least 25 years will be entitled to a pension equivalent to 50% of their pre-retirement salary. For employees with shorter service years, the pension payment amount will be calculated proportionally to ensure that each employee can get a corresponding return based on their contribution.

The reforms come after unions and opposition parties called for a similar pension system in several states. With provincial elections coming up in several key states, including Maharashtra, the BJP is trying to improve its performance in the general elections to regain its majority after losing it for the first time since 2014.

Indian Prime Minister Narendra Modi said on social media X: "The unified pension scheme ensures the dignity and economic security of government employees, which is fully in line with our commitment to their well-being and a secure future."

However, the implementation of the new system will also put some pressure on the government's finances. It is estimated that the plan will bring an additional 62.5 billion rupees (about 745 million US dollars) to the government in the first year, and employees who retired after 2004 can implement the new system retroactively.

“Guaranteed pensions will increase the central government’s future spending commitments and must be included in the future fiscal consolidation roadmap,” said Aditi Nayar, chief economist at Icra Ltd.

In addition, the Indian cabinet on Saturday also approved a plan to promote the development of biomanufacturing to help India achieve its net zero carbon emissions goals and accelerate the development and commercialization of related technologies.

The Modi government also plans to spend 106 billion rupees to enhance research and innovation capabilities. The new "Vigyan Dhara" plan will integrate and optimize the three existing research programs to improve overall scientific research efficiency and results.