In the New Pension System we have the EET system. In the absence of the Social Security System in India, why don't we make it EEE? It will make it successful.
Jayant Sinha: We have to analyse and figure out exactly what the revenue impact of that will be: the amount of taxes we are going to forgo with EET.
Nonetheless, all the analysis that I have seen suggests that the NPS right now is sufficiently attractive in the long run because of the high returns through the very low cost and ability to put together a diversified asset allocation mix. The returns are sufficiently better than that of provident funds.
So the EET is not, in fact, reducing your long-run compounded returns from NPS versus your provident fund. I think it's very competitive even as it is right now.
