Aatm Nirbhar Bharat Abhiyan

Aatmnirbhar Bharat Abhiyan in India: Gearing up for the Reformation

Aatmnirbhar Bharat Abhiyan in India or Self-reliant India is the new ray of hope in the form of a scheme initiated by India's Government. The Aatmnirbhar Bharat scheme lays the foundation stone for the long-term reformation and growth in the Indian Economy's crucial sectors that would lead to raised per capita GDP in the hour of crisis. Aatm Nirbhar Bharat Abhiyan in India is like a dream come true for plenty of business setups, migrants, vendors, indigenous families, etc. The Aatmnirbhar Bharat Abhiyan in India has played a cosmic role in the lives of suppressed sectors and people and has been a great success in converting the time of crisis into opportunity. The scheme has proved to be a blessing in disguise for most business organizations and people tremendously affected by the pandemic. The primary reason behind launching the strategy was to pursue those policies that are efficient, competitive, long-lasting, and resilient. The scheme resulted from India's efforts, which could sense the atrocities suffered by the majority of Indians and came up with this thought to revive the people's distorted lives. 

On Tuesday, May 12, the whole world was waiting for the next step of the Indian Government; our Prime Minister Narendra Modi came up with the scheme of Aatmnirbhar Bharat Abhiyan as a sigh of relief to millions of uprooted business and lives of the people. Aatmnirbhar Bharat Abhiyan popped up as a shower of rain in the barren land, bringing relief for restoring the Economy and suppressed classes. The Aatmnirbhar Bharat yojana is the economic package announced in various tranches for refilling the empty pockets and stomachs who suffered a lot amidst the coronavirus crisis. 

Atmanirbhar Bharat 3.0 - New Stimulus Measures

Union Finance Minister of India Nirmala Sitharaman made an announcement in a press conference regarding new fresh stimulus measures in the list of stimulus notifications - Atmanirbhar Bharat 3.0. Under Atmanirbhar Bharat 3.0, Indian folks have earned Diwali gifts from the central government via an eagerly-awaited stimulus package to provide the much-needed boost to the Indian economy. This announcement aims to uplift the COVID-19 hit economy and incite employment in the formal & informal economy, simplifying the process of carrying out business, increasing the deadline for the CLGS Scheme (Credit Line Guarantee Scheme), improve housing infrastructure, and more.

Key Highlights

• Announcement of ECLGS 2.0 with respect to 26 stressed sectors recognized by Kamath Committee
• Rs 1.46 trillion for manufacturing Production Linked Incentives (PLI) to boost ten champion sectors
• IT relief for home buyers: Residential units up to Rs 2 crore, the differential permitted between the agreement's value and circle rate has been extended from 10% to 20% till June 30, 2021.
• Infusion of equity in NIIF debt stage: Rs 6,000 crore of equity to be presented to the debt platform. By 2025, they will have to fund projects worth Rs 1,10,000 crore
• Extension of Rs 3 trillion Emergency Credit Line Guarantee Scheme till March 31, 2020
• Rs 1.46 trillion boosts for manufacturing Production Linked Incentives (PLI) for ten champion sectors
• Rs 18,000 crore additional outlay authorized for PM Awas Yojna
• FM announces Atmanirbhar Bharat Rozgar Yojana, endeavored at incentivizing the creation of employment opportunities during the Covid-19 recovery phase
• Govt to render Rs 65,000-crore fertilizer subsidy to farmers, drive to serve 14 million farmers
• Rs 10,200-cr additional Budget outlay to favor industries and design industrial infra under Aatmanirbhar Bharat

 

Aatm Nirbhar Bharat Abhiyan in India: An Introduction

Aatmnirbhar Bharat Abhiyan in India is the stimulus package worth Rs 20 lakh crore that got allotted for different sectors to impede this pandemic's adverse effects. It is an economic relief package that has emerged as a light at the end of the tunnel for various uprooted sectors and people. As the name suggests, Aatmnirbhar Bharat scheme aims at making the people of India and the Nation self-sufficient in every manner by relying more on local goods rather than imported goods. The scheme facilitates to convert the period of crisis into opportunity by availing the means of livelihood, reliefs, and exemptions to many. 

As per the source, the package announced under Aatm Nirbhar Bharat Abhiyan worth Rs 20 lakh crore is equivalent to 10% of India's GDP. Our Prime Minister said that to deal with the current economic imbalance for COVID-19, we all need to focus on the Self-reliant Mission. He also stated that the Government should deliver more information about the financial package under Aatmnirbhar Bharat scheme in the coming days, announced in tranches. Our Finance Minister, Nirmala Sitharaman, later told about the five tranches of the economic package under Aatmnirbhar Bharat Abhiyan in India. She also provided the detailed break-up of the 20, 97,053 crore package via a press conference. 

This overall package includes INR 1.92 lakh crore measure announced by the Government as the Pradhan Mantri Garib Kalyan scheme. The monetary and fiscal measures announced by RBI were earlier in addition to the package. The Finance Minister has unveiled the tranches back to back accordingly for each crucial sector under Aatmnirbhar Bharat Abhiyan. She also has added how the stimulus package of Rs 20lakh crore will boost the Indian Economy with proper classification in favor of the Aatmnirbhar Bharat Yojana.

In the speech, Modi Ji presented this new economic package of the Aatmnirbhar Bharat Abhiyan in India as one that would address the majority of businesses and workers' needs and enable India to become more self-reliant. The Aatm Nirbhar Bharat Abhiyan in India shall cover five pillars: "economy, infrastructure, technology-driven system, vibrant demography and demand" and would further involve "land, labor, liquidity, and laws." He also gave the example that India's production of personal protective equipment (PPE) earlier in the pandemic was quite limited. Now more than 200,000 PPE kits and N95 masks are manufactured in India daily under Aatmnirbhar Bharat Abhiyan.

Our prime minister clarified that being Aatmnirbhar Bharat Abhiyan or self-reliant mission does not mean cutting off from the outside world, isolation, or solidarity; it is more or less about self-sustaining and self-generation. In no way a self-reliant scheme aims to be protectionist. The scheme's proponents have clearly expressed that India shall always welcome foreign direct investment, technology, ideas with open hands. It seeks to translate it into being a more significant and most crucial part of the Indian Economy. The world's current situation tells us that being Aatmnirbhar under Aatmnirbhar Bharat Abhiyan or self-sufficient is the only path that can pull us out from the dark phase. To promote the same Government of India through Aatmnirbhar Bharat, Abhiyan focuses on being self-reliant and has initiated the slogan of "going vocal for local." Go vocal for local does not only aims at manufacturing local products but also promoting the same. 

Objectives of the Aatmnirbhar Bharat Abhiyan

The intended objective of the Aatmnirbhar Bharat Abhiyan in India is two-fold:

• First, interim measures like liquidity infusion and direct cash transfers for the benefits of low, migrant workers, vendors shall work as a shock absorber for those in stress.
• Secondly, long-term reforms in growth-oriented sectors to make them competitive and attractive at a global level.

 

Vision and Mission of Aatmnirbhar Bharat Abhiyan in India

Due to the long-lasting lockdown phases, India has come to a very crucial stage. Indian culture has always backed the concept of being Self-Reliant. Our Prime Minister explained the mission of this Aatmnirbhar Bharat Abhiyan as not being self-centric but being self-sufficient to bring co-operation and peace to the world. The Aatm Nirbhar Bharat Abhiyan in India is a re-packaged version of the 'Make in India' concept with more benefits for the MSME sector, motivating private participation in various sectors, escalating foreign direct investment in the defense sector, and many others. The primary objective is the economic reform that will restore economic growth to its desired level.

Talking about the vision for the Aatmnirbhar Bharat Abhiyan, The Prime Minister urged to come up with a detailed analysis of every sector and think big in a new way. He further added that Intent, Inclusion, Investment, Infrastructure, and Innovation are critical factors for India in responding to a high growth trajectory. According to him, such reforms are a systemic, planned, integrated, inter-connected, and futuristic process for the Nation's overall development. In his vision, he aims to promote local products and suggest everyone improve the quality, modernize the supply chain, and provide the best products. He emphasized more on inner strength and self-belief for making this Aatmnirbhar Bharat Abhiyan a successful mission.

Beneficiaries of the Aatmnirbhar Bharat Abhiyan 

The benefits and reliefs under Aatmnirbhar Bharat Abhiyan in India are available for the cottage industry, home industry, small-scale industry, MSME, laborers, farmers, middle-class people, and those Indian industries which are working to boost our Economy consistently and dedicatedly.

Important areas upon which the scheme shall lay its benefits include:

• Agricultural and supply chain & system.
• Rational Tax System
• Reformation of Infrastructure
• Capable Human Resources
• To encourage startups and small-scale units
• Financial condition.
• Good investment opportunities
• Make in India Mission

 

Critical features of Aatmnirbhar Bharat Abhiyan

The key highlights of the Aatmnirbhar Bharat Abhiyan in India are:

• Rs 40,000 crore increase in allocation for MGNREGS boosts employment amongst the masses and uproot the work issue.
• Increased rate of investments in Public Health and other health reforms to prepare people of India for future pandemics
• Technology-Driven Education with Equity under Aatm Nirbhar Bharat Abhiyan in India.
• Enhanced Ease of Doing Business through IBC related measures under Aatmnirbhar Bharat Abhiyan.
• Decriminalization of Companies Act defaults
• Ease of Doing Business for Corp-orates under Aatm Nirbhar Bharat Abhiyan in India.
• Public Sector Enterprise Policy for a Self-reliant India under Aatmnirbhar Bharat Abhiyan.
• Increased borrowing limits of States from 3% to 5% for 2020-21 only & promoting State-level reforms under Aatm Nirbhar Bharat Abhiyan.

 

Details of a package under Aatmnirbhar Bharat Abhiyan 

The Finance Minister of India, Nirmala Sitharaman, under Aatm Nirbhar Bharat scheme, did announce the package in five tranches in a press conference. The package is inclusive of Rs. 1.7 Lakh crore of free food grains to the poor and cash flowed to poor people and liquidity measures and interest rate cuts by the Reserve Bank of India, which amounts to Rs. 8.01 lakh crore.

The Finance Minister has unveiled the tranches under Atma Nirbhar Bharat Abhiyan in India as:

First Tranche

A total INR 5, 94,500 crore allotted for this tranche under Aatmnirbhar Bharat Abhiyan in India, which shall solely focus and emphasize strengthening India's backbone and Economy. MSME is the real backbone of the Indian Economy; central banks and the Government are taking all possible measures to uplift small scale sectors' growth and development. Actions taken in the first tranche includes the following:

• Free collateral loans to MSMEs worth INR 3lakh crore-The installment of Rs 3 lakh crore collateral-free automatic loans for business and credit guarantees to the lender includes a credit line micro and other small scale businesses. The time duration granted for the loan is four years under Aatmnirbhar Bharat Abhiyan, and after 12 months of the moratorium, the principal's repayment shall begin. The scheme is availed only up till 31st October 31, with absolutely no guarantee and collateral under Aatmnirbhar Bharat Abhiyan.
• Subordinate debts for stressed MSMEs worth INR 20,000 crore-INR 20,000 crore subordinated debt out of which at least 2 lakh MSMEs are benefited under Atma Nirbhar Bharat Abhiyan.
• MSME Fund of funds for small-scale business- The funds of funds with a corpus of Rs.10,000 crore has allotted for all the small scale businesses under Aatmnirbhar Bharat Abhiyan. The funds will encourage them to list their place on the board of stock exchange. Equity infusion worth Rs 50,000 crore will help it grow.
• Change in the definition of MSMEs- The MSME definition got changed to encourage MSME units under Aatmnirbhar Bharat scheme to grow immensely without losing on the benefits availed listed for MSMEs. The investment limit that defined an MSME got revised upwards and turnover as criteria to categorize it. In addition to these, the difference between manufacturing and service MSMEs got removed.
• Partial Credit Guarantee- Under the Atma Nirbhar Bharat Abhiyan partial credit guarantee to the banks allotted by the Government for stressed MSMEs worth Rs 4000 crore.
• EPF Facility for entrepreneurs and businesses- A liquidity relief worth INR 2500 crore provided to 367,000 organizations and 72.22 lakh employees of the eligible firms under Aatmnirbhar Bharat Abhiyan in India. The Government to extend contribution to 24% EPF for June, July, and August. Under the Pradhan Mantri Garib Kalyan Package, payment of 12 of employer and 12 employees to be introduced into EPF accounts of the eligible establishments.
• Statutory PF contribution reduced -A relaxation of statutory PF for employers and employees be reduced to 10% each from the existing 12% each for every sector for three months under EPF. It facilitates liquidity of INR 6750 crore to employees and employers, which will enhance their take-home salary for the next three months under Aatmnirbhar Bharat Abhiyan.

• INR 50,000 crore liquidity through TDS/TCS rate reduction- INR 50,000 crore relief fund facilitated to reduce the rates of TDS and TCS by 25% for the payments other than that of the salaries.
• Liquidity Schemes for NBFC's- The center provides INR 30,000 crore for a unique liquidity scheme to support NBFC/MFIs/HFCs, mutual funds, etc. To reduce their debts, the Government launched these schemes for mid-size and small-size nonbanking financial companies surviving in the market.
• Partial Credit Guarantee Scheme- INR 45000 crore additional credit guarantee scheme 2.0 for NBFCs. In case of any default, the Government to bear 20% of the loss under Atma Nirbhar Bharat Abhiyan in India.
• To reduce piled up debts- INR 90,000 crore allotted to DISCOMs receivables and the loan to be granted under state government's guarantee for the exclusive purpose of discharging all the liabilities of Discoms.
• Extension of completion and registration deadlines under RERA- The ministry announced a relaxation and stretching of real estate projects under RERA by six months; this will relieve real estate agents' stress to complete the tasks. And will ensure that the buyers will get their booked houses very much on time. If required, the period extended for more than three months under Aatmnirbhar Bharat Abhiyan.

 

Second Tranche

After the first announcement of the installation package, our Finance Minister Nirmala Sitharaman introduced the second tranche, mainly focusing on the Migrant laborers, farmers, and street vendors. INR 3,10,000 Crore allotted for the second tranche under Aatmnirbhar Bharat Yojana. The detailed elaboration of the measures taken by the Government in this regard includes:

• One Nation, one card for migrant workers- Due to Pandemic's adverse effects, the Government of India announced a new scheme in favor of every migrant worker under Aatmnirbhar Bharat Abhiyan in India. One Nation one ration card is to be implemented from August 2020. Any labor or migrant worker can easily avail ration for free of cost at any country corner for the next three months. Technology Systems, enabling Migrants to access Public PDS (Ration) from any Fair Price Shop by March 2021 in India.
• Free supply of food grains to Migrants workers- There shall be a free supply of food grains for migrants and workers for three months under Aatmnirbhar Bharat Abhiyan. The scheme shall benefit at least 800 million people worldwide by distributing 5 KG Rice or wheat and 1kg pulses for each household for three months. Even non-ration cardholder migrant workers can avail of the same amount of food and grains. Approximately INR 3500 is spent on the current intervention for three months under Aatm Nirbhar Bharat Abhiyan in India.

 

A rental housing scheme is initiated for urban poor and migrant workers under PM Awas Yojana under which Government housing converted to an affordable loan for migrant laborers and workers. It will cost INR 11,000 Crore to the Government for providing food and shelter to migrant workers.

• Facilities for street vendors-The Government of India announced a unique credit facility worth INR 5000 crore for the street vendors under Aatmnirbhar Bharat Abhiyan in India. The scheme shall benefit approximately 50 lakh vendors to set up their own business with the initial capital of INR 10,000.
• Emergency funds in favor of farmers- The Government of India announced Rs 2 lakh crore emergency funds in favor of farmers made available through Kisan Credit Cards. Near about 2.5 crores of farmers, including fishers, animal husbandry farmers, and others, shall benefit from this credit at a very concessional rate under Aatmnirbhar Bharat Abhiyan in India. INR 30,000 crore allotted as emergency working capital fund via NABARD in favor of farmers. More of INR 30,000 crore might add up to this under the scheme of Aatmnirbhar Bharat Abhiyan.
• Shishu loans- A total of INR 1,500 crore interest subvention for Shishu loans under MUDRA rate reduction introduced. The scheme encourages the small business to kick start their venture with the loan's aid and assistance under the MUDRA scheme.
• Relief for housing sectors- The Government announced the sum of INR 70,000 crore funds to the housing sectors and another middle-income group. The scheme has already benefited middle-income groups in India and is still working relentlessly in providing aid and assistance to other income groups.
• Funds in favor of tribals- Under CAMPA funds allotment done by the Government of INR 6000 crore to secure tribals' employment. This fund will help increasing more job opportunities for tribals in urban, semi-urban areas for agriculture and plantation works.

 

In addition to these specified measures, the Finance Minister also added other reforming labor laws. There are few specific future steps in favor of the migrant workers taken up by the Government for the migrant workers:

• Annual medical checkups for migrant workers.
• Social security funds
• Appointment letter in favor of migrant workers 
• Timely wages and modifying the minimum wages.

 

Third Tranche

Under the third tranche of Aatmnirbhar Bharat Abhiyan in India, the Government has focused on agricultural reforms. Under this tranche, the main aim is to strengthen agrarian sectors, animal husbandry, fishery, and dairy. The Government announced an overall sum of INR 1.5 lakh crore as the agricultural infrastructure fund. Finance Minister Nirmala Sitharaman came up with other necessary economic measures that solely focused on developing better infrastructure and capacities in rural areas. These additional measures, such as governance and administrative reforms, are also included in the list.

The Agricultural reforms under Aatm Nirbhar Bharat Abhiyan in favor of the agricultural sector include:

• A financial package worth INR 1 lakh crore announced for farm-gate infrastructure, including the post-harvest management infrastructure and other agricultural proprietors. The Government is also looking after the core agricultural sectors to strengthen the farm and agriculture industry.
• A fund of INR 10,000 crore got initiated in favor of the MFEs. It is the part of the initiative taken by the Government of India in favor of the Micro Food Enterprises. The scheme aims to promote local value-added products in the global market. The current plan has proved to help approximately 2 lakh MFEs establish their industry, technological developments, and international name in the market.
• Fund of INR 20,000 crore directed towards fishers' welfare under Pradhan Mantri Matsya Sampada Yojana of Aatmnirbhar Bharat Abhiyan. INR 11,000 crore is in favor of marine while the rest of the fund utilized to uplift fishing harbors & cold chains.
• The Government provided around INR 13,343 crores under the scheme of Aatmnirbhar Bharat Abhiyan in India to control animal diseases. Cattles are benefitted from 100% vaccination under the National Animal Disease Program. Till now, more than 1.5 crores of cattle have availed the services of the scheme.
• A fund of INR 15,000 crore introduced to develop the cattle farming and dairy industries under Aatmnirbhar Bharat Abhiyan in India, which will help the dairy farming industry gain better exposure in the privatized market.
• INR 4000 crore is initiated by the Government that shall cover 10,00,000 hectares under the National Medicinal Plant Board of Aatm Nirbhar Bharat Abhiyan in India.
• The Government announced a sum of INR 500 crore to enhance the bee-keeping initiative to extract honey and wax. Under Aatmnirbhar Bharat Abhiyan in India, this scheme is the initiative towards the production, storage, and marketing of honey.
• INR 500 crore allotted to extend the Operation green from tomatoes, onions to other agricultural produce. 50% subsidy in favor of transportation and cold storage.

 

Aatm Nirbhar Bharat Abhiyan in India also focuses on the legal framework related to the agricultural sectors, including making amendments in the Essential Commodities Act, 1955.  The Government is willing to bring the agrarian marketing reforms to increase farmers' marketing choices through central law. It will help the farmers expand their business in the open markets, large retailers, and exporters transparently.

Fourth Tranche

Under the Aatmnirbhar Bharat Abhiyan, the Government announced a fourth tranche worth INR 20 lakhs in favor of eight critical sectors like coal, defense, minerals, airspace, etc. The fourth and fifth tranches have an equal value of INR 48,100 crore, including the additional figure of INR 40,000 crore for MNREGA for creating job opportunities amidst the nationwide lockdown. And INR 8100 crore is in favor of viability gap funding.

• Coal and mining commercialization- The Government has inducted Investment of INR 50,000 crore in the coal & mining sector of Atma Nirbhar Bharat Abhiyan. The Government shall introduce an open market for coal industries. Privatization in the coal industry will, in turn, increase the competition amongst private companies. There's also liberalization in the coal bidding as well as the selling market. Other efforts were introduced to develop these sectors.
• Increased defense production- Weapons and ammunition production is enhanced to make self-reliant India under Aatmnirbhar Bharat Abhiyan in the defense sector. Thus, the Government has stopped encouraging the import of foreign defense weapons. A separate budget is announced for domestic capital procurement.
• Mineral sector- The Government has encouraged the private sector's participation in the mineral sector to boost the Aatmnirbhar Bharat Abhiyan employment structure.
• Airspace management- For the betterment of the civil aviation sector, restrictions on air space utilization reduced. There shall be a profit margin of Rs1000 crore estimated from the aviation sectors. The ease of air space utilization will minimize air travel costs. An increase in the aviation industry's privatization, new airports, and optimal airspace utilization are required to develop India's aviation sectors. They are reforming the Maintenance, Repair, and Overhaul (MRO) to make India a global aircraft maintenance hub. The budget is increased from INR 800 crore to INR 2000 crore for the maintenance and aircraft components repairs. For repair facilities, the world's major manufacturers appointed to set up the engine repair in India.
• Power distribution in UTs- Distribution Companies would ensure adequate power supply, reducing load-shedding issues. Several Changes in the tariff policy reforms got initiated due to which consumers won't face any problems. Privatization in power distribution groups in union territories will help consumers get better services and financial efficiency in distribution under Aatmnirbhar Bharat Abhiyan in India.
• Atomic energy Reforms- The Government shall establish the research reactor in PPP mode to produce medical isotopes for humanity's welfare through affordable health treatment against cancer and other significant diseases. The technology or incubation center be set up with a collaboration of research facilities and entrepreneurs to develop atomic power sectors.

 

Fifth Tranche

In the last and fifth tranche of Aatmnirbhar Bharat Abhiyan, our Finance Minister announced an additional package of worth INR 40,000 crore in seven steps for MGNREGA, health and education, decriminalization of Companies Act, Ease of Doing business, state government funds, and others.

• MGNREGA Fund- This fund aims at helping mainly the migrant workers who have faced the financial and health problems amidst the Covid-19 pandemic.
• Funds for state Government- Considering the state governments' economic crisis, the Central Ministry has allocated Rs 46,038 crore for the State governments. The Government has further increased the advance limit by 60% for every state government for emergency use. Rs 4,113 crore fund released from the Health Ministry in favor of state government for Covid-19 activities.
• Several other activities are under Aatmnirbhar Bharat Abhiyan in India for the benefits of the respective sectors.

 

The COVID-19 pandemic has changed the economic and social infrastructure of India. The world is now standing at the edge of a massive financial breakdown. India is going through an economic downturn while announcing 10% of the GDP under Atma Nirbhar Bharat Abhiyan in India is a bold decision. Many sectors have already gained the relief funds, and other measures shall come in action soon to the respective sectors under Aatmnirbhar Bharat Abhiyan. But it depends very much on how these measures and schemes of Atma Nirbhar Bharat Abhiyan will draw a rising curve favoring India's economic growth line. While the stimulus package under Aatmnirbhar Bharat Abhiyan in India offers relief to various sectors, every Indian citizen has a significant role to play. The Prime Minister urged each of the citizens to promote local products and use Indian products comparatively. This, in turn, will enhance the domestic products, and people will start depending upon local goods and products, thereby contributing to the Economy.

Take Away

Aatmnirbhar Bharat Abhiyan in India played a vital role in improving the economic condition of India. It has lived up to our expectations in restoring the ruined conditions of various sectors and the people's lives. Under the Atma Nirbhar Bharat Abhiyan in India, the financial assistance got distributed as per the needs of the industry. 

Aatmnirbhar Bharat Abhiyan in India has been a great success and is implemented successfully in all the relevant sectors. As an Aatmnirbhar Sena, we are also contributing relentlessly to provide round-the-clock assistance to all the budding entrepreneurs and business establishments and help them establish their venture and secure a new means of livelihood for them. We have left no stone unturned in presenting this Atma Nirbhar Bharat Abhiyan in India, a successful mission by being their strength in this hour of need. The post-COVID-19 era may usher in unprecedented opportunities under Aatmnirbhar Bharat Abhiyan, provided the implementation deficit is effectively addressed. Atma Nirbhar Bharat Abhiyan in India is a success story for all of us.