New Delhi, Jan 21: The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved the continuation of the Atal Pension Yojana (APY) till 2030-31, reaffirming the government’s commitment to strengthening social security for workers in the unorganised sector, officials said.

Launched in May 2015, the APY provides a guaranteed minimum pension ranging from Rs 1,000 to Rs 5,000 per month after the age of 60, depending on the subscriber’s contribution. With over 8.66 crore subscribers enrolled so far, the scheme has emerged as a cornerstone of India’s inclusive welfare framework, ensuring old-age income security for millions who lack formal retirement benefits.

Officials noted that the extension of funding support for promotional and developmental activities will help expand the scheme’s reach further, especially among rural and semi-urban populations. The government has consistently highlighted APY as a key pillar in its vision of financial inclusion and social equity.

In another major decision, the Cabinet approved an equity support of Rs5,000 crore to the Small Industries Development Bank of India (SIDBI). The infusion, spread across three tranches between 2025-26 and 2027-28, is expected to benefit nearly 25.74 lakh new MSME beneficiaries.

The first tranche of Rs3,000 crore will be infused in FY 2025-26 at a book value of Rs568.65 per share, followed by Rs1,000 crore each in FY 2026-27 and FY 2027-28. With this capital support, the number of MSMEs receiving financial assistance is projected to rise from 76 lakh in FY 2025 to over one crore by FY 2028.

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According to official data, India’s 6.90 crore MSMEs generated 30.16 crore jobs as of September 2025. Based on this average, the addition of 25.74 lakh new MSMEs is estimated to create 1.12 crore employment opportunities by FY 2027-28, underscoring the sector’s role as a vital engine of growth and job creation.

The twin decisions—extending APY and strengthening SIDBI—reflect the government’s broader strategy of combining social welfare with economic empowerment, ensuring both income security for vulnerable groups and sustained support for small businesses driving India’s development trajectory.