Cabinet approves pathway for all Agniveers to become regular soldiers

The Union Cabinet on 4 November 2026 approved a second two-year engagement for the 75% of Agniveers not retained after four years, if they are willing. After it, all will be offered enrolment as regular soldiers, subject to willingness and selection criteria. The 25% merit-based retention stays, and the Agnipath scheme continues.
Syllabus: Prelims · Current Affairs & IR; GS2 · Government Policies; GS3 · Security Forces & Agencies
Why this matters for UPSC
GS3 security: the Agnipath scheme and defence manpower. Prelims can ask about Seva Nidhi and Agniveer pay; Mains, short tenure versus career security.
Why it matters
A young soldier who joined as an Agniveer and was not kept on in regular service faced leaving at the end of the engagement. That meant a lump sum, no pension and a new career to find. The new route lets that soldier choose to stay longer and then compete for a permanent post. Recruits gain a clearer career path, which may make the scheme more attractive to applicants. The forces can hold on to soldiers they have already trained. The change also reshapes the original idea of a short, youthful service. The wider debate is how to balance a young force, job security for soldiers and the cost of a larger permanent cadre.
Prelims pointers
- Agnipath covers all three Services; Agniveers are enrolled under the respective Service Acts of the Army, the Navy and the Air Force.
- An Agniveer's monthly customised package is split 70% in hand and 30% to the Agniveer Corpus Fund, which the Government matches.
- The Seva Nidhi is exempt from income tax, and the four-year Agniveer engagement carries no entitlement to gratuity or pension.
- Agniveers get non-contributory life insurance cover of Rs 48 lakh for their engagement period, per the 2022 scheme.
- Agniveers also get Risk and Hardship allowances as applicable in each Service, on top of the monthly package.
Practise a UPSC-style question
With reference to the Seva Nidhi package under the Agnipath scheme, consider the following statements:
1. The Seva Nidhi paid to an Agniveer on completing the engagement period is exempt from income tax.
2. The Government's contribution to the Seva Nidhi equals half of the Agniveer's own accumulated contribution.
Which of the statements given above is/are correct?
- (a) 1 only
- (b) 2 only
- (c) Both 1 and 2
- (d) Neither 1 nor 2
Show the answer
Answer: (a) 1 only
Answer: (a) 1 only. Seva Nidhi is tax-free, and the Government matches the Agniveer's contribution in full.
Statement 1: correct. The 2022 PIB release on Agnipath says the one-time Seva Nidhi package will be exempt from income tax.
Statement 2: incorrect. The Government adds an amount equal to the Agniveer's accumulated contribution with interest, not half of it.
Eliminate: statement 2 is incorrect, as the Government's share is equal. Out: (b), (c).
Eliminate: statement 1 is correct, as the release makes Seva Nidhi tax-free. Out: (d).
Trap: Near-miss figure. The Government's share is changed from equal to half, a detail easy to misremember when the corpus figures are fresh.
Remember: Seva Nidhi = the Agniveer's 30% contribution + an equal Government share + interest, free of income tax.
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