Cabinet Approves Extension of Atal Pension Yojana to 2030-31 and ₹5,000 Crore Equity Infusion for SIDBI
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Bolster social security and empower small businesses, the Union Cabinet, chaired by Prime Minister Narendra Modi, today approved the continuation of the Atal Pension Yojana (APY) through the financial year 2030-31. Alongside this extension, the government sanctioned a ₹5,000 crore equity support package for the Small Industries Development Bank of India (SIDBI) to accelerate growth in the MSME sector.
Securing the Future: Atal Pension Yojana Extended
Launched in May 2015, the Atal Pension Yojana was designed to provide a reliable income safety net for workers in the unorganized sector. The Cabinet’s latest decision ensures that funding for promotional and developmental activities for the scheme will continue for the next several years.
Projected Impact and Employment Generation
This capital injection is expected to provide immediate relief and expansion opportunities for over 25.74 lakh new MSME beneficiaries. The government anticipates that the total number of MSMEs receiving financial assistance will surge from 76 lakh at the end of FY 2025-26 to over one crore by the end of FY 2028.
Beyond financial figures, the move is a major employment driver. The government projects that this support will help generate 1.12 crore new jobs by the end of the 2027-28 financial year, significantly boosting the national labour market and industrial productivity.
