First Agniveer Batch Completes Its Term: Armed Forces Suggest Changes to the Agnipath Scheme
The first batch of Agniveers (young soldiers recruited for four years under the Agnipath scheme) will finish its four-year term in October 2026.
The Army, Navy and Air Force have sent recommendations to the Department of Military Affairs (DMA) on how to improve the scheme, based on four years of experience. A report with these suggestions has gone to the competent authority for a decision.
The Ministry of Defence has confirmed the recommendations but has not made their details public.
Under the current rules, up to 25% of each batch can be kept on as regular soldiers. The other 75% leave after four years with a tax-free "Seva Nidhi" package of about ₹11.71 lakh, but with no pension and no gratuity.
The forces are trying to balance two needs: a younger fighting force, and enough experienced soldiers for continuity in operations. The government has said there is no move to change the 25% retention ratio for now.
Agnipath Scheme: Structure and Rationale
The Agnipath scheme is the system India uses since 2022 to recruit soldiers, sailors and airmen below the officer rank. Young people join for a fixed period of four years and are called Agniveers. At the end of four years, up to 25% of them are selected to continue as regular, permanent soldiers. The rest leave the forces with a lump-sum savings package called Seva Nidhi, a skill certificate and help in finding a second career.
The first Agniveers, who joined in late 2022 and early 2023, finish their four years in October 2026. This is the first time the 25% retention rule actually takes effect. The services have used four years of real experience to suggest changes to the scheme, and the government will now decide whether to adjust it.
One Rank One Pension (OROP)
One Rank One Pension, or OROP, is a rule for paying pensions to retired soldiers, sailors and airmen. It says that two people who retired at the same rank after the same length of service should get the same pension, no matter when they retired. So a soldier who retired in 1995 and one who retired in 2020, both as a Havildar after 24 years, should get roughly equal pensions.
The large and growing cost of lifelong defence pensions, made larger by OROP, was a key reason the government introduced the Agnipath scheme. Agniveers who leave after four years get no pension, so they fall outside OROP. Those selected for permanent service will get a regular pension, and OROP will apply to them, after their full regular service.
- First Agniveer batch completes its four-year term in October 2026
- Recommendations sent by the Army, Navy and Air Force to the Department of Military Affairs
- Retention: up to 25% of each batch; 75% exit after four years
- Seva Nidhi: about ₹11.71 lakh, tax-free; no pension or gratuity on exit
- Agnipath announced: June 2022; age 17.5 to 21 years; 4 years including 6 months of training
- Reports in mid-2026 said the Navy sought about 75% retention, the Army and Air Force about 50% (proposals, not approved)
- Defence pensions in Budget 2026-27: about ₹1.71 lakh crore, roughly 22% of the defence budget