What are the benefits?

Agniveers will get Rs 30,000-45,000 per month as salary for four years. Upon the completion of the 4-years of service, a one-time ‘Seva Nidhi’ package of Rs 11.7 lakhs will be paid. The government will help rehabilitate soldiers who leave the services after four years.

10 per cent of posts in the Home and Defence ministries will be reserved for 'Agniveers.  10 per cent seats of  Agniveers will be reserved in the Central Armed Police Forces (CAPFs) and Assam Rifles.  The Ministry of Ports, Shipping and Waterways announced that the inclusion of Agniveers in several services branches, including merchant navy.  The National Institute of Open Schooling has announced that it will provide special courses for the Agniveers associated with the project to get class 10th and 12th pass certificates.

The Union Ministry of Education has decided to introduce a three-year special technical educational course at the undergraduate level for Agniveers.  Many state governments like UP, MP, Haryana, Rajasthan, Karnataka and others have announced reservation in jobs for agniveers.  Several industrialists have extended their support to the scheme such as Mahindra and Mahindra, RPG and others

Agniveers will also get a Rs 48 lakh life insurance cover for the four years. In case of death during the four years, the payout will be over Rs 1 crore, including pay for the unserved tenure. On death or martyrdom An Agniveer's family is entitled to several forms of compensation including a insurance sum of Rs 48 lakh, Rs 44 lakh as compensation, and 30% of Seva Nidhi.

The family also receives pay for the remaining tenure from the date of death, amounting to over Rs 13 lakh, as well as a contribution of Rs 8 lakh from the Armed Forces Battle Casualty Fund. To provide immediate financial assistance, the Army Wives Welfare Association offers Rs 30,000 to the next of kin.

Why was this scheme launched and what are it’s concerns?

Two main reasons can be seen behind agnipath scheme creating agniveers. One, At present the average age of Indian armed forces is 32 years where as ministry of defence own study says that average age of the armed forces of the US, the UK, France, Israel, Russia and China is 26 to 27 years.

To remain a powerful army, the average age should be lower and The Ministry of Defence has estimated that the scheme will help reduce the average age of the armed forces from the present 32 years to 24-26. A more youthful military to deal better with India’s security threats.

In 1987 when Indian army was sent to Srilanka for peacekeeping mission it was felt that wherever there was a group of younger soldiers in a unit, it did better than the others.

Other reason is about financial considerations.

Two of the major expenditures of the ministry of defence are on salaries and Pensions. These costs have increased from 50 percent to 55 percent in the past 10 years. On the other hand, the share of acquisition and arms and ammunitions has declined by four percentage points. The share of research and development in defence which is critical for the self-reliance is about 3-4 percent. In 2022-23, salaries and Pensions added add up to INR 287,040 crore, or 79 percent of the MoD’s total expenditure on soldiers.

As a result, the government is unable to make capital acquisitions. The government has found it increasingly difficult to pay even for ongoing contracts. In 2019-20, for instance, allocations for acquisition were nearly 30-percent lower than what was required to pay for signed deals, let alone new ones.

It is expected that the savings that will accrue on both the fronts due this scheme. The monthly average salary of an Agniveer will be INR 45,338. This is nearly 24-percent lower than the average monthly pay of INR 59,976 of a current other Ranks. This means an Agniveer would cost the government INR 175,656 less every year. Assuming 60,000 Agniveers are inducted in the first year, the total saving on salaries would amount to INR 1,054 crore

In the last 10 years (2013-14 to 2022-23), pension expenditure has increased by 163 percent from INR 45,500 crore to INR 119,696 crore. In comparison, the Ministry of defence’s overall expenditure has risen by a far lower 107 percent.

The number of military pensioners, which stood at 380,000 in 1950 and 600,000 in 1970, climbed to 2,680,000 in 2021. In the coming years the pension budget would take away most of the money allocated for defence.

However on pensions, however, there will be no savings in the near to medium term. It is only after 2044 that the number of pensioners will start declining.  It is, however, important to underscore that in the absence of Agnipath, the number of pensioners would have continued to swell without any break.

But the scheme has some concerns as well 

The scheme has lowered the attractiveness of military service and it impact on the ethos, values, beliefs and combat effectiveness of the armed forces.  Other concerns about Agnipath scheme is about the future career prospects of those who are retired. It has been argued that Agniveers who do not find a place in the regular cadre will leave the military dejected and could be a potential nuisance for society, given their exposure to the use of arms. The Centre, and certain state governments, have however announced job reservations and other incentives for the demobilised Agniveers. But still many people are protesting about the scheme.