The Central Cabinet, chaired by Prime Minister Narendra Modi, has approved two major decisions to strengthen social security and the MSME sector. The Atal Pension Yojana (APY) will now continue until FY 2030-31, with increased government support for promotion, development, and gap funding. Additionally, the Small Industries Development Bank of India (SIDBI) will receive ₹5,000 crore in equity assistance to boost credit flow to MSMEs.
Atal Pension Yojana Extended to 2030-31The Cabinet has approved the continuation of APY till FY 2030-31, ensuring sustained financial support for promotion and expansion activities. Key initiatives under this plan include raising awareness among unorganized sector workers and increasing the scheme’s reach. Gap funding will also continue to maintain financial stability of the program.
Launched on 9 May 2015, the APY aims to provide guaranteed monthly pensions of ₹1,000 to ₹5,000 after the age of 60 for unorganized sector workers. As of 19 January 2026, over 8.66 crore subscribers are enrolled, making it a critical pillar of India’s social security framework. The government believes expanding this scheme will play a crucial role in achieving the “Developed India 2047” vision.
SIDBI Receives ₹5,000 Crore Equity SupportTo strengthen MSMEs, the Cabinet approved an equity injection of ₹5,000 crore into SIDBI, to be disbursed in three phases:
- FY 2025-26: ₹3,000 crore
- FY 2026-27: ₹1,000 crore
- FY 2027-28: ₹1,000 crore
This funding will help MSMEs access cheaper and easier credit, enhancing their growth and operational capacity. The government estimates that this decision will bring approximately 25.74 lakh new MSME beneficiaries by FY 2028.
Impact on Employment and EconomyOfficial data indicates that 6.90 crore MSMEs currently employ around 30.16 crore people, with each MSME providing jobs to an average of 4.37 individuals. The addition of 25.74 lakh new MSMEs is expected to generate roughly 1.12 crore new jobs, giving a significant boost to employment and the broader economy.
Bottom Line:
The Cabinet’s twin decisions—extending APY and boosting SIDBI equity—strengthen both social security and MSME growth, creating economic stability, employment opportunities, and long-term financial inclusion for millions of Indians.
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