Latest news with #GrantThorntonBharat
Time of India
15 hours ago
- Business
- Time of India
Are you saving enough for retirement? Many aren't
NEW DELHI: Higher earners contribute more to retirement products, but the overall contribution is still relatively low for most individuals, suggesting that many people may not be saving enough for retirement, a survey showed on Wednesday. Nearly 83% of participants relied largely on three retirement products: EPF, gratuity, and NPS. "This reliance on traditional schemes suggests limited diversification in retirement portfolios," said the survey conducted by consulting firm Grant Thornton Bharat. The results showed that more than half (55%) of respondents expect a monthly pension exceeding Rs 1 lakh. However, only 11% believe their current investments are sufficient to meet these expectations. "This stark disparity highlights a significant preparedness gap that needs to be addressed through better financial planning and awareness," said the report, the survey for which was conducted by the consulting firm in Aug and Sept last year. Govt-backed plans remain the most preferred option, with 39% of participants favouring such schemes. About 27% of respondents showed a preference for private plans offered by reputable financial institutions. Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 5 Books Warren Buffett Wants You to Read In 2025 Blinkist: Warren Buffett's Reading List Undo High-risk, high-return plans were particularly popular among younger respondents, with 31% of participants under 25 years interested in these options. "This finding suggests a growing appetite for risk among the younger demographic," said the report. With regard to the age of retirement, about 56% of respondents said they plan to retire between the age of 55 and 65. "This age range aligns with standard retirement practices in India and reflects the broader societal norms regarding work and retirement in the country," according to the report. Younger respondents, particularly those who were 25 years or below, preferred early retirement. Among this group, 43% showed a preference to retire between 45-55 years. "Trend indicates shift in attitudes among younger employees, who may prioritise work-life balance & leisure over extended career spans," said the report. The majority, 74% of respondents, said that they contribute between 1% and 15% of their salary toward retirement plans. "This contribution range indicates a cautious approach to savings, possibly influenced by financial constraints or competing priorities," said the report. Asked to respond about their knowledge of pension calculations, 52% of respondents said they were somewhat aware of how their pensions are determined, while 30% admitted to being completely unaware. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Economic Times
20 hours ago
- Business
- Economic Times
Many Indians may not be saving enough for retirement
The overall contribution to retirement products is relatively low for most individuals in India, suggesting that many people may not be saving enough for retirement, Grant Thornton Bharat said in its report based on the analysis of a pension survey conducted between August 2024 and September 2024. The survey analysis pointed out notable dissatisfaction, especially with national pension system (NPS) returns. 'While employees' pension fund (EPF) and NPS are popular retirement products, there is notable dissatisfaction, especially with NPS returns, indicating the need for better-designed, more attractive retirement solutions. 'The NPS scheme may need reforms to address concerns about returns and customer satisfaction,' it suggested. The report further said that there is a significant gap between the desired pension and the perceived adequacy of current retirement savings. 'Financial institutions should consider introducing more guaranteed income products, such as annuities, to cater to the demand for stability' it said. 'Respondents prioritise long-term financial security over high returns, and there is strong interest in government-backed pension plans, although younger people are more inclined toward high-risk, high-reward strategies,' it to the report, many people are unaware of specific government schemes (like Atal Pension Yojana) and how their pension amounts are calculated. 'This suggests a need for greater financial literacy and transparency around pension planning,' it report aims to inform policymakers, individuals, employers, and financial institutions about the prevailing attitudes and gaps in the pension landscape by presenting a mix of qualitative insights and quantitative data supported by graphical representations.'The insights from the report serve as a foundation for developing better policies and enhancing financial literacy among employees to ensure a secure and stable retirement,' the report said.
The Hindu
21 hours ago
- Business
- The Hindu
Odisha's women farmers export mangoes to Italy, reaping global rewards
Jyotirmayee Pradhan, a woman farmer from Odisha's Dhenkanal district, has scarcely travelled beyond her home State, let alone boarded a flight to Italy. Yet, this summer, her mangoes have journeyed farther than she ever has. Demand for the fruit has been so consistent that new orders arrive even before the previous consignments are unpacked. Together with a cohort of women farmers, Ms. Pradhan has mastered the practice of harvesting mangoes without a blemish, sorting them by size, and packaging them to meet the standards of international markets. From the orchards of central Odisha to cities across Europe, the mango export initiative led by women farmers has emerged as a story of quiet resilience and enterprise. Ms. Pradhan is a board member of the Baladevju Women Farmers Producer Company Limited, a women-led Farmer Producer Organisation (FPO) with over 1,000 shareholders. The FPO has achieved a turnover of ₹1 crore by exporting mangoes to Dubai. Promoted by consulting firm Grant Thornton Bharat and supported by HDFC Bank's Parivartan under the STREE (Social and Transformative Rural Economic Empowerment) programme, the FPO has begun exporting Amrapali mangoes to European countries. As of Wednesday, the FPO has shipped five consignments amounting to 10 tonnes of mangoes to Italy. By the end of the mango season in June, it plans to export over 50 tonnes. The initiative is benefiting more than 100 women mango orchard owners. Grant Thornton Bharat, in association with the Agricultural and Processed Food Products Export Development Authority (APEDA), has engaged with over 33 FPOs across eight districts in Odisha. These collaborations have focused on addressing challenges in post-harvest management through capacity-building exercises. A turning point for the initiative was a training session on post-harvest handling of fruits, specifically tailored for women farmers. Support from government agencies followed, including assistance for constructing cold storage facilities, procurement of plastic crates, transportation from field to aggregation points, and storage rent subsidies. Aid was also extended towards value addition and processing. 'The collaboration has helped us set free from the compulsion of leasing out our orchards to local dealers, which had been limiting our income. By adopting proper methods of mango plucking and packaging in line with international and European standards, we have connected with global buyers and secured higher returns for our local produce,' Padmini Sahoo, another member of the Baladevju Women Farmers Producer Company Limited, said. Dhenkanal district, with 9.34 hectares under mango cultivation, primarily of varieties such as Amrapali, Lengada, and Keshari, holds significant export potential.
Time of India
a day ago
- Business
- Time of India
Many Indians may not be saving enough for retirement
The overall contribution to retirement products is relatively low for most individuals in India, suggesting that many people may not be saving enough for retirement, Grant Thornton Bharat said in its report based on the analysis of a pension survey conducted between August 2024 and September 2024. The survey analysis pointed out notable dissatisfaction, especially with national pension system (NPS) returns. 'While employees' pension fund (EPF) and NPS are popular retirement products, there is notable dissatisfaction, especially with NPS returns, indicating the need for better-designed, more attractive retirement solutions. 'The NPS scheme may need reforms to address concerns about returns and customer satisfaction,' it suggested. The report further said that there is a significant gap between the desired pension and the perceived adequacy of current retirement savings . 'Financial institutions should consider introducing more guaranteed income products, such as annuities, to cater to the demand for stability' it said. Live Events 'Respondents prioritise long-term financial security over high returns, and there is strong interest in government-backed pension plans, although younger people are more inclined toward high-risk, high-reward strategies,' it added. According to the report, many people are unaware of specific government schemes (like Atal Pension Yojana ) and how their pension amounts are calculated. 'This suggests a need for greater financial literacy and transparency around pension planning,' it said. The report aims to inform policymakers, individuals, employers, and financial institutions about the prevailing attitudes and gaps in the pension landscape by presenting a mix of qualitative insights and quantitative data supported by graphical representations. 'The insights from the report serve as a foundation for developing better policies and enhancing financial literacy among employees to ensure a secure and stable retirement,' the report said.
Mint
3 days ago
- Business
- Mint
Bank loan sanctions to MSMEs for job creation down nearly a third in FY25
Bank loans sanctioned to India's micro, small, and medium enterprises (MSMEs) under the Prime Minister's Employment Generation Programme (PMEGP) dipped by nearly a third to ₹12,315 crore in FY25, from ₹17,759 crore in FY24. The development assumes significance since MSMEs contribute around 29% to India's GDP. This comes in the backdrop of the government reworking its revival framework for MSMEs to ensure continuity of bank credit during their stress period. Launched in 2008 by merging Prime Minister's Rojgar Yojana and Rural Employment Generation Programme, PMEGP is a flagship credit-linked subsidy scheme of the government. Entrepreneurial demand weakens Bank loans sanctioned to MSMEs increased in FY22 in the wake of the covid-19 pandemic, and continued to increase till FY24. From FY22 to FY24, the amount of bank loans sanctioned to MSMEs nearly doubled from a little over ₹9,000 crore to nearly ₹18,000 crore, before falling to FY25 levels of ₹12,315 crore, according to data provided by the MSME ministry. Also Read: Kanpur node is key in UP Defence Corridor for indigenous manufacturing: PM Modi The dip in sanctioned loans also reflected a reduction in the number of businesses seeking credit. The number of businesses which received bank loans under the scheme in FY25 is lower than that in FY22, according to MSME ministry data. In FY25, about 1,08,923 MSMEs received loans from banks under the PMEGP, less than FY22's 1,09,127, after peaking in FY24 with 1,65,725 businesses, the data showed. Global uncertainty is likely to have doused entrepreneurial sentiment for smaller businesses in FY25, banking experts said. MSME growth is driven by domestic and global macroeconomic environment, said Vivek Iyer, partner and financial services risk leader, Grant Thornton Bharat. "FY25 has been categorized with many uncertainties ranging from geopolitical stress points in west Asia, the Russia Ukraine conflict, Sino-American rivalry, the impending US election outcome and then the subsequent outcome of the US election. When sentiment is poor, demand to start ventures is poor and hence demand for credit is poor," he said. Also Read: India remains fastest-growing economy for fourth year straight: FM Sitharaman Iyer clarified that banks had not changed their assessment criteria for MSME loans, highlighting that the dip in sanctioned bank loans is a demand-side issue, and not a supply-side problem. Access to finance still a hurdle The key objective of the PMEGP was to aid micro enterprises of self-employment ventures to provide employment to artisans and youth in both rural and urban regions. The intention of the scheme was to curb the migration of youth from rural to urban regions, the MSME ministry annual report for FY25 said. Under the scheme, the central government provides a part of the capital required to start a venture. Nearly one million micro enterprises have been assisted since the inception of the scheme till December 2024 with aid of ₹26,124 crore, providing estimated employment opportunities to over 80 lakh people, the MSME ministry FY25 annual report said. Lack of access to capital has been a key hurdle in MSME growth in India. A study by Niti Aayog and the Institute for Competitiveness in May 2025 cited Reserve Bank of India (RBI) data to show that MSMEs continued to have a small share of the credit to businesses deployed by 41 scheduled banks from 2020 to 2024. Also Read: Govt relaxes rules to boost GST registration among small businesses In September 2020, 14% of all credit deployed by these banks went to micro and small enterprises, while 4% went to medium enterprises. The situation improved by September 2024, when 20% went to micro and small enterprises, and 9% went to medium enterprises. The share of credit deployed to large businesses, however, still remained 71% in 2024, according to the data. In a 2022 World Bank Enterprise Survey, over a fifth of Indian MSMEs said access to finance is their biggest obstacle.
