India restricts military service to 4 years in below officer ranks to tame spiraling manpower costs

Vishal Thapar Jun 14, 2022

India on June 14 announced a transformative but controversial overhaul of its military service rules for personnel below officer rank (PBORs), who form the overwhelming bulk of the 1.4-million strong armed forces. The new rules, packaged as the Agnipath scheme, restrict the tenure of military service for 75 per cent of new recruits to four years.

Under this scheme, the overwhelming bulk of military personnel will retire between the age of 21 and 25 and not be entitled to a pension and the considerable superannuation benefits which veterans who have served 15 years are entitled to. So far, all PBORs have an opportunity to serve 15 years and take home a pension.

The trigger for Agnipath appears to be the burgeoning pension bill for the armed forces after the Government in 2014 accepted the emotive demand for One Rank One Pension (OROP) by the military community. The Pension Bill ballooned to Rs 1.19 Lakh Crore (Trillion), eating up almost a quarter of the Rs 5.25 Lakh Crore Defence Budget for 2022-23.

Flanked by the Service Chiefs, Defence Minister Rajnath Singh announced the implementation of the Agnipath scheme. “The Cabinet Committee on Security (CCS) has approved the Agnipath scheme,” he declared in New Delhi.

The armed forces will recruit 46,000 soldiers – dubbed Agniveers – under this scheme in 2022. The first recruitment rally to enlist these volunteers will be held in 90 days, Lt General Anil Puri, Additional Secretary in the Department of Military Affairs, announced.

Defence Minister Singh dismissed a question by the media on the savings the Agnipath scheme would generate with a rhetorical flourish. “Agnipath should not be looked upon with suspicion…We do not assess the nation’s military requirements in terms of savings.,” he said, suggesting that costs are irrelevant with respect to the overwhelming priority of keeping India’s borders secure.

Twenty-five per cent of troops recruited under the Agnipath scheme will be absorbed in the regular cadre of the three armed forces, and entitled to serve out at least another 15 years which will make them eligible for pension. This means that 19 years after a batch enlists for military service, 25 per cent of them would be eligible for pension. This suggests a saving of 75 per cent of money spent on pensions two decades down the line. Extrapolated to present day Budgetary figures, the Agnipath move brings down the annual Military pension bill to under Rs 30,000 Crore from Rs 1.19 Lakh Crore. An estimated 50,000 troops retire every year.

There would also be a commensurate saving on Military salaries. The higher paid among the soldiers serving longer tenure would be reduced sharply by almost 50 per cent. As Agnipath matures, number of troopers retiring within four years will rise to about 50 per cent. Manpower costs, particularly with respect to the Army, have been worrying military planners. The 1.3-million-strong Indian Army’s staggering salary bill of Rs 1.17 Lakh Crore accounts for 59.3 per cent of its total budget of Rs 1.97 Lakh Crore. This casts a shadow on the Revenue-Capital ratio for the Army Budget. At 83.7:16.3, this severely limits the space for modernization.

At today’s figures, each Agniveer will cost the Government Rs 30,000 per month in the first year of service and Rs 40,000 in the fourth and final year of service. An over Rs 5 Lakh payout by the Government as an exit package (in addition to the soldier’s own savings), with zero recurring liability, rounds up the deal. There is monetary support for death and disability on duty.

While the motivation for Agnipath is crystal, there are big concerns over how this “transformative” change will impact Indian military culture and combat capability. The Agniveers - who will eventually comprise 50 per cent of the PBOR cadre – will be sent for operational service in some of the world’s most difficult battlefields with just 16 weeks of training.

The other issue is even more cultural. The new recruitment pattern will junk the region, caste and religion-based recruitment to the below officer ranks in the various regiments of the Indian Army. All military units shall henceforth move towards an all India, all class composition. While region, religion and caste-based regimental units – a legacy of the British Indian Army - are an anachronism in modern times, these have been retained as these remain highly effective combat units due to social coherence among troops.

Army Chief General Manoj Pande tried dousing fears. “Seventy-five per cent of units have all class composition (already). The basis aim is to widen the recruitment base and provide equal opportunity to youth,” he said, responding to a question from the media.

The presence of the Service Chiefs at the announcement of the scheme which some believe is too radical a shift particularly in troubled times was to convey that the military top brass was aligned with the move. All three Service Chiefs hailed Agnipath as “transformational”.

All Chiefs emphasized on the “youthful profile” dividend, a healthier, fitter and more trainable military which is also tech savvy. Some of the recruitment will be done through ITI establishments to enlist volunteers with a technological orientation, which would also save time on training and “increase the technical threshold of the forces”.

While General Pande said that Agnipath would make the armed forces “future ready”, Navy Chief Admiral Hari Kumar hailed it as a “new idea for a new India”. Both General Pande and Admiral Kumar said the scheme - mooted two years ago - had been “examined threadbare”, was “well thought out” and “given final shape after extensive deliberation and thought”.

The Army Chief also sought to give an assurance that the radical change would not destablise the forces. “While it stabilizes, operational capability and preparedness to meet internal security challenges will be maintained,” he said.

Agnipath also has a provision to “progressively open” below officer ranks to women. Admiral Kumar termed this provision as “essential step to stay on course”. Chief of Air Staff Air Chief Marshal VR Chaudhari appeared a little less enthusiastic, saying that “an in-principle approval” had been given for inducting women in other ranks in the future.

The Defence Minister indicated the imminence of another announcement giving Agniveers priority in post-military service employment by central government ministries, state governments and PSUs.