Private sector drives NPS growth and economic activity

This National Pension System (NPS) witnessed a strong Year-on-year growth of 40.1%, achieving ₹2.47 lakh crore till June 29, driven mainly by buoyant equity markets and rising private sector subscriptions. Total NPS assets including Atal Pension Yojana (APY) scheme has reached ₹12.5 lakh crorewhich means an increase of 28.64%, in line with PFRDA data.

Private sector activity is recovering, production is leading

Private sector activity in June rebounded to 60.9, up from The lowest level in May in five months was 60.5, driven by accelerating manufacturing activity (58.5 from 57.5). New orders rose significantly, driving the fastest employment growth in 18 years across manufacturing and services. Despite some softening in export orders, domestic demand remained strong, contributing to overall sector growth.

Economic outlook and inflation trends

India’s economy is poised for a stronger fiscal 2025, with Fitch Ratings revising its growth forecast up to 7.2%. Despite a drop in business confidence to a three-month low, companies expect marketing activity and sustained demand to bolster the recovery. Input inflation slowed in June, although manufacturers managed to raise selling prices, suggesting resilience in passing on higher costs to consumers.