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India's Defence Economy

Agnipath: Short Service and Its Economics

How the Agnipath scheme recruits soldiers for four years, why it aims to cut pension costs and lower the average age, and the debates it sparked.

In June 2022, the government launched the Agnipath scheme for recruiting soldiers, sailors and airmen.

How it works

  • Recruits, called Agniveers, serve for four years.
  • Up to 25 percent may be retained for regular long-term service.
  • Others leave with a lump sum from the Seva Nidhi fund, of around 11.7 lakh rupees, but no pension.

The goals

  • Lower pension costs over time.
  • Younger average age of the forces.
  • Skilled youth entering the civilian workforce.

The economics

  • Short-service recruits don’t add to lifelong pension bills.
  • Savings can go towards modernisation.

Criticisms

  • Protests in 2022 over job security.
  • Concerns about training time and morale.
  • What happens to the 75 percent after four years, and whether civilian jobs will absorb them.

Responses

Several states and central forces announced reservations or preferences for former Agniveers in jobs like police.

The Agniveer's choice

A 21-year-old completes four years as an Agniveer. He leaves with a lump sum and skills, and applies for a state police job where former Agniveers get preference.

Thinking Agnipath is only about saving money

It also aims for younger forces and skilled youth, though concerns remain.

Key takeaways
  • Agnipath (2022) recruits soldiers for four years.
  • Up to 25 percent may be retained; others leave without pensions.
  • It aims to cut pension costs and lower average age.
  • Job security and post-service employment are debated.
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