PFRDA expects AUM of NPS to grow to ₹40 lakh crore in 4 years, driven by addition of new subscribers from non-govt sector

At present, about 15 % of the NPS AUM is contributed by the non‑government segment, which also accounts for roughly 90 lakh subscribers in the defined‑contribution scheme.
| Photo Credit:
Jasmine Nongrum

PFRDA projects that the NPS AUM will rise to roughly ₹40 lakh crore over the next four years, up from the current ₹18 lakh crore, fueled by an anticipated influx of at least two to three crore new non‑government subscribers each year.

Key Takeaways

• PFRDA projects NPS AUM will grow to about Rs 40 lakh crore in four years, up from the current Rs 18 lakh crore.
• Growth will be driven by an expected two to three crore new non-government subscribers added annually.
• The non-government segment currently contributes about 15% of NPS AUM and roughly 90 lakh subscribers.
• PFRDA plans to use digital platforms to accelerate subscriber onboarding, with slower uptake expected in year one.

At present, about 15 % of the NPS AUM is contributed by the non‑government segment, which also accounts for roughly 90 lakh subscribers in the defined‑contribution scheme.

“Through emerging digital platforms we aim to onboard at least two to three crore new subscribers annually. The first year may see a slower uptake, but over a full year we expect to hit that two‑to‑three‑crore mark,” said PFRDA Chairperson S. Ramann while speaking to reporters in Kolkata on Friday.

PFRDA, the pension‑scheme regulator, hosted an outreach session for mutual fund distributors focused on StAR NPS and the broader NPS in Kolkata.

“We are keen to bring mutual fund distributors onto StAR NPS, given their existing familiarity with BSE StAR MF. We encourage them to route their mutual‑fund clients into NPS as well. While mutual funds typically see an average holding period of about two‑and‑a‑half years, NPS locks in funds for the long term — if you keep your money invested for 15 years, you’ll witness its growth; otherwise, the benefits remain elusive,” Ramann added.

At present, ten pension funds are operational. Following PFRDA’s open ‘on‑tap’ registration window launched last December, four additional pension‑fund managers have received licences to manage NPS assets.

“These new funds are expected to become active within the next two to three months,” Ramann noted.

Published on August 7, 2026