Linking National Pension System And Inclusive Growth: A Conceptual Framework

Abstract

Purpose: This paper theoretically examines the National Pension System (NPS) as an institutional reporting and accountability architecture within social security, emphasizing how disclosure, governance reporting, and transparency mechanisms shape stakeholder trust and long-term resource allocation in an ageing economy. By taking base of Life-Cycle Hypothesis and Welfare Economics, a conceptual framework has been developed which shows connectedness between NPS and inclusivity.

Design/Methodology/Approach: This study utilizes a conceptual framework and a theoretical review methodology. It additionally anchors the conceptual model in theoretical accounting perspectives—stewardship theory, disclosure theory, and public accountability—treating NPS as an accounting infrastructure that reduces information asymmetry, strengthens fiduciary reporting, and improves governance credibility. It merges the principles of economics, financial inclusion and inclusive growth theories thereby establishing a framework that explains how NPS fosters inclusive growth through various mediating and moderating factors. The study further tests the propositions drawn from the conceptual model using quantitative, explanatory, and longitudinal research design to assess the relationship between NPS and India’s inclusive growth. Using panel data from both inter-household variations and temporal dynamics has been taken enabling robustness in fostering inclusive growth through pension frameworks. Mediating and moderating variables allows the longitudinal framework for assessing the direct and indirect effects.

Findings: The study found three major intermediating variables after going through intense review of literature which are as follows social fairness, long-term capital formation, and financial inclusion (2020-2026). This paper also highlights the involvement of NPS with SDGs 1, 8 & 10. The present study helped the researchers and academicians in developing strong foundation for further evaluating the effectiveness of structural and economic reforms in transitional economy.

Originality/ Value: This research advances theoretical accounting literature by proposing a model that positions NPS beyond a retirement savings vehicle-as an institutional accounting and reporting infrastructure in which disclosure quality, governance reporting, and accountability mechanisms influence sustainable and equitable growth. Whereas established literature predominantly approaches pension schemes as a standalone system, this work integrates multiple theoretical approaches to propose a holistic, mechanism-based framework.