Policy Update
Rishap Singh
Background
The Agnipath Yojana, launched on June 14 2022, by the Government of India, marks a significant shift in the recruitment and human resource management of the Indian Armed Forces ( Hooda, D.S., 2022). This scheme addresses the structural issues such as the increasing pension liabilities, the aging of the military and the need for a technologically adept defence force. Traditionally, soldiers served for 17–20 years, retiring with a lifelong pension and benefits. Agnipath replaces this with a four-year service tenure for recruits—now called “Agniveers”-after which only 25% are retained for regular service, while the remaining 75% exit with a severance package but without pension or ex-serviceman status (Behera, L.K., & Kaushal, V. 2022).
Objectives:
- Lower the average age of the armed forces from 32 to 24–26 years.
- Attract youthful, tech-savvy talent in line with modern warfare demands.
- Reduce long-term pension and salary outlays, freeing resources for modernization.
- Provide youth with military training, discipline, and skills for nation-building.
Timeline & Beneficiaries:
- The first batch was inducted in November 2022; the scheme is now the sole entry route for soldiers below officer rank.
- Annual intake: 45,000–50,000 Agniveers across Army, Navy, and Air Force.
- Eligibility: 17.5–21 years (one-time relaxation to 23 years in 2022), 10th/12th pass, meeting physical and medical standards.
Functioning
Recruitment and Service
All recruitment for personnel below officer rank in the Indian Armed Forces is now conducted exclusively through the Agnipath scheme. Under this system, Agniveers serve for a fixed four-year period, including six months of intensive training. At the end of the tenure, only 25% of Agniveers are selected for permanent roles, where they serve for a minimum of 15 additional years. The remaining 75% exit the service with a tax-free “Seva Nidhi” package of ₹11.71 lakh, which is jointly contributed by the individual and the government (IMPRI Insights. 2022). Agniveers who are not retained are not eligible for pension, gratuity, or ex-serviceman status, marking a significant departure from the traditional recruitment and retirement benefits previously offered.
Remuneration and Benefits
Agniveers receive a monthly wage of ₹30,000, increasing to ₹40,000 by the fourth year. Agniveers have a ₹48 lakh life insurance cover while on duty. Compensation for death or incapacity can be up to ₹1 crore, including the Seva Nidhi component. The scheme also offers special educational pathways, allowing Agniveers to pursue 12th certification through the National Institute of Open Schooling (NIOS) and bachelor’s degrees via IGNOU during their tenure(Press Information Bureau. 2022).
Transition Support
To support Agniveers transitioning out of service, the government has introduced a 10% reservation in Central Armed Police Forces (CAPFs), Assam Rifles, defense civilian posts, and 16 Defence Public Sector Undertakings (PSUs). Several state governments have also announced preferences for Agniveers in police and other government jobs. Additionally, priority is given to Agniveers for bank loans and skill certification programs to enhance their employability in the civilian sector (Press Information Bureau. 2022).
Concerns and Challenges
- Shorter service tenure raises questions about readiness of defense forces. Issues like adequate training, unit cohesion, and operational effectiveness, especially as 75% exit after four years pose a major concern.
- The shift from regimental (class-based) to all-India, all-class recruitment may impact traditional military esprit de corps.
- Protests erupted nationwide over job insecurity and lack of post-service guarantees.
Performance (2022–2025)
Recruitment and Induction:
- Army: Two batches of 40,000 Agniveers completed training and are under posting; a third batch of 20,000 began training in November 2023.
- Navy: Three batches totaling 7,385 Agniveers trained.
- Air Force: 4,955 Agniveers completed training.
- Intake is set to rise annually, with the Army aiming for a 50:50 mix of Agniveers and regulars by 2032.
Budget and Financials:
- The average Agniveer salary (including Seva Nidhi contribution) is 24% lower than that of a regular soldier, leading to estimated savings of ₹1,054 crore in the first year, rising as more Agniveers are inducted.
- Pension savings will materialize only after 2044, as current regulars retire and only 25% of Agniveers become eligible for pensions.
- Defense pension expenditure rose 163% from ₹45,500 crore (2013–14) to ₹119,696 crore (2022–23); Agnipath aims to curb this long-term trend.
Impact
On Armed Forces
The Agnipath scheme is expected to give the outcome of reducing the average age profile of the armed forces by 4–5 years, which aligns with global standards such as those in the US, UK, and China (25–27 years). This will result in the infusion of younger, potentially more technologically adept personnel. However, persistent concerns exist about the potential dilution of unit cohesion, regimental traditions, and operational readiness, particularly in high-stress combat roles.
On Society and Economy
| Metric | Impact |
| Pension Burden | Projected 66% reduction by 2044 (₹1.2L crore saved annually) |
| Post-service Employment | 72% of existing Agniveers seek CAPF/state police roles; 28% pursue skilling programs |
| Regional Discontent | 39 LS seats lost in high-recruitment states (UP, Raj, Har) citing scheme objections |
Source:- Delhi policy group
Agnipath provides structured employment, skill development, and discipline to Indian youth, especially those from rural and underprivileged backgrounds. The Seva Nidhi and skill certificates may support entrepreneurship or further education, but the real test will be the employability of the 75% of Agniveers who exit after four years. Violent protests and political opposition have underscored public anxiety about job security and the adequacy of post-service support.
Policy and Governance
The scheme has highlighted the need for robust data collection and transparent communication in defense reforms. The government’s ability to deliver on its promises of lateral absorption, educational pathways, and skill certification for Agniveers remains under scrutiny as the scheme matures.
Emerging Issues and Suggestions
- Training and Operational Effectiveness: The current six-month training period for new recruits may not be adequate for achieving full combat readiness. Extending the basic training period and introducing phased responsibility allocation, will ensure recruits achieve full combat readiness .
- Unit Cohesion: Rapid turnover and short service periods risk undermining regimental traditions, unit cohesion, and morale, which are critical for operational effectiveness. Implementing structured mentorship and team-building programs will help in preserving regimental identity and foster strong unit cohesion among recruits.
- Post-Service Employment:Uncertainty about post-service employment may affect morale and deter potential recruits. Delays in policy implementation could erode trust in the system.Measure to Expedite and widely publicize official notifications for lateral absorption, and establish transparent priority placement systems for Agniveers in CAPFs, PSUs, and state police.
- Stakeholder Engagement and Communication: Lack of clear communication and engagement with stakeholders (recruits, families, veterans, and the public) can lead to misinformation and resistance. Establish transparent, ongoing communication and feedback channels with all stakeholders to build trust, address concerns, and ensure scheme success.
- Monitoring and Evaluation: The Agnipath scheme represents a major shift; its long-term impact on military effectiveness and social outcomes remains untested. Designate the initial years as a pilot phase with rigorous, independent impact assessments and a clear commitment to make evidence-based course corrections as needed.
Way Forward
Agnipath scheme represents a bold military human resource management experiment, aiming to create a leaner, younger, and more modern force while addressing fiscal constraints. Its success will depend on maintaining operational effectiveness and morale during the transition, ensuring that Agniveers receive meaningful post-service opportunities, and fulfilling the “military covenant” between the state and the soldier. Transparent, data-driven evaluation and readiness to adapt the scheme based on empirical outcomes will be crucial. Expanding similar reforms to the officer cadre, as recommended by experts, may further rejuvenate the armed forces. Agnipath could be a model for balancing youth aspirations, national security, and fiscal prudence in New India if implemented with flexibility, empathy, and accountability.
References
- Behera, L.K., & Kaushal, V. (2022). The Case for Agnipath. Observer Research Foundation. [https://www.orfonline.org/research/the-case-for-agnipath]
- Hooda, D.S. (2022). The Agnipath Scheme: Analysis and A Way Forward. Delhi Policy Group. [https://www.delhipolicygroup.org/publication/policy-briefs/the-agnipath-scheme-analysis-and-a-way-forward.html]
- Press Information Bureau. (2022). Cabinet clears ‘AGNIPATH’ scheme for recruitment of youth in the Armed Forces. [https://www.pib.gov.in/PressReleasePage.aspx?PRID=1833747]
- Ministry of Defence. Agnipath Scheme Details. [https://164.100.158.23/AgnipathScheme.htm]
- Economic Survey 2024–25. [https://www.indiabudget.gov.in/economicsurvey/]1920
- Financial Express. (2024). Rethinking the Agnipath Scheme: A Critical Examination. [https://www.financialexpress.com/business/defence-rethinking-the-agnipath-scheme-a-critical-examination-3516627/]
- IMPRI Insights. (2022). Agnipath Scheme: Paving Way To Atmanirbhar Bharat. [https://www.impriindia.com/insights/policy-update/agnipath-atmanirbhar/]
About the Contributor: Rishap Singh is a Research Intern at IMPRI, New Delhi. He is currently pursuing his Master’s in Public policy and Governance from Tata institute of Social sciences, Hyderabad.
Acknowledgement: The author extends his sincere gratitude to the IMPRI team and Ms. Aasthaba Jadeja for her invaluable guidance throughout the process.
Disclaimer: All views expressed in the article belong solely to the author and not necessarily to the organisation.
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