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India’s top economic advisor warns that current welfare and pension systems may be unsustainable due to demographic shifts.
Economic Advisor to India’s Prime Minister Sanjeev Sanyal warned that poorly targeted welfare programs and generous civil servant pension schemes could create unsustainable fiscal burdens for future generations.
Speaking in an interview, he stressed the need for safety nets based on economic need, not identity, and criticized universal benefits like free bus travel for women as inefficient.
He cautioned that pay-as-you-go pension systems may become unaffordable as India’s working-age population shrinks within 25 years, drawing parallels with Europe’s fiscal strain.
Sanyal urged reforms to ensure future pension security, warning young civil servants that current commitments may not be sustainable.
El principal asesor económico de la India advierte que los actuales sistemas de bienestar y pensiones podrían ser insostenibles debido a los cambios demográficos.