Atma Nirbhar Bharat Yojana: A Ray of Hope amid COVID-19

Amidst the crisis of Covid-19, Atma Nirbhar Bharat Yojana emerged as a new ray of hope for the sectors held to be the victim of this pandemic. Aatm Nirbhar Bharat, as the name signifies, is the self-reliant scheme initiated by the Government of India for converting this moment of crisis into opportunity. Where the whole world was grieving and shattered by the devastating effect of the crisis period, Aatm Nirbhar Bharat Yojana took the initiative of stabilizing the distorted condition of various sectors and lives of the people. The Atma Nirbhar Bharat scheme is a second life for so many indigenous families, business setups, vendors, migrants, etc. As a scheme, Atma Nirbhar Bharat Yojana has contributed immensely to restore millions of sectors and people’s financial condition.

Atma Nirbhar Scheme initiated to stabilize the economy and contribute to the economy by providing financial support, job opportunities, free loans, etc. The only target behind Aatm Nirbhar Bharat Yojana is establishing a self-Reliant India. This Nation shall produce, manufacture, and consume its goods and services without further relying on ‘global international products.’

India is a land that is unconditionally dependent on its local vendors, fruit sellers, ration stores, clothing brands, etc. to fulfill its needs & make us brands globally. With launching Atma Nirbhar Bharat Yojana, our PM emphasized that we need to protect ourselves and continue with our lives in the garb of benefits of the plan of Aatm Nirbhar Bharat Yojana. He further stressed that the financial package of Atma Nirbhar Bharat designed, considering the interest of liquidity, laws, laborers, and land. In the battleground of the corona crisis, the world looks up to India to lead this battle, and this modern 21st Century shall be India’s phase of time to stand out in the world and outshine tremendously.

Atma Nirbhar Bharat Yojana: Background

On the auspicious date of 12^th May 2020, where the whole world was waiting for the Indian Government’s next step regarding lockdown and other measures, Atma Nirbhar Bharat Yojana was announced by our prime minister a stimulus package a combo pack of relief and exemptions for the suppressed class.

The prime minister’s special economic package is worth Rs 20 lakh crore, which is nearly 10% of India’s GDP. The package was announced as a big sigh of relief for the whole Nation, continuously reminding its citizens to become a self-reliant nation in all the manners. Atma Nirbhar Bharat Abhiyan is a stimulus measure to boost the embattled economy brought to a screeching halt under the sensitive circumstances. It also aims at providing financial support to those who had taken a hit during the lockdown. Making the announcement, PM Modi gave the clarion call for Aatm Nirbhar Bharat Yojana to tide over the crisis period.

Atma Nirbhar Bharat Yojana includes a sole vision of global welfare and sought the Nation’s people’s support to make their dream coil into a reality. The package is a blessing in disguise under Aatm Nirbhar Bharat Yojana that helps in reviving the economy with the sole purpose of re-building the fragments of dreams of millions of its people.

The Atma Nirbhar Bharat Yojana further stresses that the path for Indian economic revival is the mantra of self-reliance. PM Modi also said that the financial package would help revive every sector of economy – starting from demand, supply chain to manufacturing. The only way to achieve self-reliance is that the economic package focuses on factors like land, labor, liquidity, and laws. At its developing stage, a country like India had to go through the tremendous change in terms of economy badly needed to become a self-reliant nation. The package under Aatm Nirbhar Bharat Yojana shall also provide a reasonable boost for Abhiyan through this improved structural reforms, technological indulgence, and ease of setting up a business.

Our prime minister also clarified in his speech that the self-reliant India mission does not refer to cutting off from the whole world, isolating itself, or solidarity; it is mainly about self-sustaining and self-generation. In no way a self-reliant scheme aims to be protectionist. He further stated that India shall always welcome open arms, all kinds of foreign direct investment, technology, and ideas. 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 Atma Nirbhar Bharat or self-sufficient is the only way out for overpowering this dusky phase of life. To promote the same, Government of India through Atma Nirbhar Bharat Yojana focuses on being self-reliant and has initiated the slogan of “going vocal for local.” The mantra of going local for vocal imparts the clear message of buying and promoting local brands and products by relying the least on imported products.

Time has taught us a great lesson where we must make ‘local’ the principle of our daily lives. Today, global goods were once local, too, but when people started supporting them more, they became international brands. That is why, as a responsible citizen of India, every Indian must be adamant about becoming vocal for local.

Reason for launching Atma Nirbhar Bharat

There were multiple reasons why the Nation needed a stimulus package like Aatm Nirbhar Bharat Yojana to cope with back-breaking situations.

Various reasons for introducing the Atma Nirbhar Bharat Yojana under Atma Nirbhar Bharat explained in the following points:

To switch from Globalization to Localization:  

The sectors such as pharmaceutical, leather, clothing, food, and furniture shall revamp their entire process to a local level where earlier, these sectors relied very much on the imported products. Their motto is solely to become self-reliant. It is now an integral part for Indian citizens to depend on the local market and supply chains to sustain the Covid-19 pandemic crisis. The Government should offer a pronouncement preference in contracts for locally produced goods to discourage importing goods and services and provide tax sops. The main purpose is to encourage business and re-address the ‘Make in India’ campaign in 2014.

To increase the investment in health sectors and associated schemes: 

Catering to the public sector’s needs and expenditure on the health sector is the need of the hour. The Government’s essential duty is to invest more in grass-root health institutions ramping in either urban or rural areas. Providing advanced ways for treatment and hospital beds and other medical facilities for the increasing number of patients, corroborating the lab network system, and supervising authorities shall be essential for this time. Efforts were required to boost indigenous vaccine production and other related measures. 

Increased rate of employments through MGNREGS: 

To boost the employment rate post this pandemic era, the Government of India has taken a pledge to invest approximately 40,000 Crore under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS). The Atma Nirbhar Bharat Yojana shall help the uprooted migrant workers and poor people to find work in rural areas. Further, creating more durable assets and infrastructure will boost the rural area’s economy and produce a better production rate.

The platform for technology-driven education system:

Multiple schemes like PM e-VIDYA, Mandodarpan, New National Curriculum, National Foundational Literacy, and Numeracy Mission shall be implemented to provide a better version of technology-driven education for the masses. The Government has taken all possible measures per se to ensure that every child can attain an average learning level required until grade five by the year 2025.

Aid and assistance to state governments: 

This Atma Nirbhar Bharat Yojana package shall give the state government outstanding service by increasing its borrowing limit from 3 to 5 percent for 2020-21. An initiative like this shall enable the state to borrow extra resources valued for approximately 5 lakh crore. However, the borrowing shall stay limited to factors like One Nation One Ration Card, Distribution of electricity, and revenue to urban local bodies.

Five Pillars of strength under Aatm Nirbhar Bharat Yojana

The Atma Nirbhar Bharat Yojana is said to build the Nation based on five pillars which portrayed as its salient features which include:

• Economy: An Economy is the broad set of inter-related production and consumption activities that help determine how scarce resources are. The scheme’s idea shall be to prosper the economy, which takes the quantum jumps and not an incremental change. Economists believe that countries should pursue food and energy supply on their own in a globalized world. The countries in the pandemic should strive for a balance between globalization and being self-reliant.
• Infrastructure: The economic infrastructure of any Nation is the foundation of an economy business activity and can be better established through communication, transportation, energy supply chains, or financial institution. The Indian Government firmly believes that we need to have a world-class infrastructure to prove our identity. A particular preference during a pandemic laid upon healthcare infrastructure by increasing the number of hospital beds, medical equipment, intensive care units, etc.
• Technology-driven system: Technology innovation has majorly helped the business enterprises establish upgraded business operations at a lower cost, contributing immensely to the economy. Technology-driven platforms are useful for growing tremendously by considering all possible components that can instantly increase the business structure. A better business structure would ultimately lead to a better Nation.
• Demography: The study of the human population, including its size, growth, density, distribution, and another vital portion of statistics, is known as demographic economics. India is the second-most populous country globally, with nearly one-fifth of the world population. Indian Government believes that vibrant demography shall be a great source of energy for a self-sufficient India.
• Supply and demand: Supply & demand is a clear relationship between the number of goods and services a producer shall wish to sell at different prices and the quantity at which consumers want to buy. Self-sustaining India shall witness a demand for goods, wherein the demand and supply chain be utilized fully. Under the Atma Nirbhar Bharat, it is essential to build a robust supply chain and supply system by fulfilling consumers’ demands.

The objective of the Atma Nirbhar Bharat

The intended objective of the Aatm Nirbhar Bharat Yojana includes:

• Liquidity infusion and direct cash transfer for the benefit of migrant workers, laborers, vendors, and needy persons shall act as a savior for them at this hour.
• The Reformation and revolutionary measures in the growth-oriented sectors will lead to better competitive capabilities globally.

Critical features of Atma Nirbhar Bharat Yojana

• The Government announced the “Atma Nirbhar Bharat Yojana” to revive every sphere of the economy from demand, supply to manufacturing, and make India self-reliant to sustain and tackle any downturn event future.
• The Atma Nirbhar Bharat Yojana package is divided into four tranches, where each tranche has its focus areas.
• The package’s score focus is on MSMEs and agriculture and its allied activities.
• The Enhanced ways for ease of doing business shall bring it closer to success.
• Inclusion, Investment, Infrastructure, and Innovation are four critical factors for India in responding to a high growth trajectory.
• Aatm Nirbhar Bharat Abhiyan promotes local products and suggests everyone improve the quality, modernization of the supply chain, and provide the best products.
• Atma Nirbhar Bharat Yojana aims to project the desired status of the economy as before by improved methodology.

Significance of Atma Nirbhar Bharat

• Atma Nirbhar Bharat Yojana has played an essential role in turning a crisis into an opportunity; the best example to quote the same is PPE kits’ production. N-95 masks in India have taken a hike from almost being negligible to 2 lakh each practically daily.
• Self-reliance is the only option for India and that could have been only possible by way of launching Atma Nirbhar Bharat Yojana.
• Self-reliance is not about cutting India off from the whole world. India is a firm believer of this term welfare of the world, and that India’s progress is associated with the world. The world laid its trust that India has a lot to contribute to the entire humanity’s development.
• The PM also stressed the need to be vocal for local products and urged people to buy only local goods.

Beneficiaries in the ambit of Atma Nirbhar Bharat

The significant perks under Aatm Nirbhar Bharat Yojana are levied upon the cottage industry, home industry, small-scale industry, MSME, laborers, farmers, and other Indian industries working to boost our economy consistently and dedicatedly.

 The following are the primary beneficiaries of Atma Nirbhar Bharat scheme 2020:

• Growth-oriented sectors
• Shramik (Labourers / Workers/Migrants)
• Kisan (Farmers)
• Daily Wage Earners
• People who work for the development of the country
• Middle-Class people who pay income tax to the GovernmentGovernment
• Upper-class people who give strength to the economy

The breakup of the package amidst Atma Nirbhar Bharat Yojana

Tranche 1-

Tranche 1 provides a set of relief measures worth INR 5,94,550 crore and includes funding and loan facilities for MSMEs, NBFCs/HFCs, discoms, contractors, real estate, salaried workers, etc.

Tranche 2-

The second set of relief measures is worth INR 3, 10,000 crore that focuses on migrant workers, small farmers, street vendors, and needy persons.

Tranche 3-

The third set of relief package is worth Rs 1, 50,000 crore. These measures’ core area is agriculture and its allied sectors like dairy, animal husbandry, and fisheries to strengthen the overall farm sector.

Tranche 4-

Under the fourth tranche, the sets of measures are worth Rs 48,100 crore that primarily focuses on eight growth-oriented Indian economy sectors. The industry includes Coal, Minerals, Defense, Airspace management, Social Infrastructure Projects, Power distribution companies, Space sectors, the Atomic Energy sector, etc.

Detailed Stimulus under Atma Nirbhar Bharat Yojana

• The first dose under Aatm Nirbhar Bharat Yojana mainly focuses on re-establishing India’s economic backbone. MSME sectors and other equivalents sectors that have been contributing big time to India’s economy. The first installment of the Aatm Nirbhar Bharat Yojana package announced by the Finance Minister emphasizes firming India’s economic backbone. To build a self-reliant India, growth, and development in the MSME sectors is needed at this stage. Thus, along with the Government, the central bank has taken these measures to uplift the small-scale businesses. Overall, 17 actions were taken to emphasize the concept of Prime Minister’s Atma Nirbhar Bharat. Seven out of them are dedicated to MSME sectors. This package focuses on various other sections like land, labor, liquidity, real estate, etc.
  • The Government, to uplift The Micro, small and medium scale industries, shall initiate Rs 3 lakh crore collateral-free MSMEs emergency loan that includes a credit line for micro and macro, small scale businesses. The period granted for the loan is four years. The scheme can be availed till 31st October 2020 with no guarantee and no fresh collateral.
  • The Government shall facilitate rs 20,000 crore debt for the stressed MSMEs. For this 20,000 crores, subordinate debt at least 2 lakh MSMEs shall avail its benefits. Functioning MSMEs, which are NPA or stressed, will be eligible for the subordinated debt funds.
  • Rs. 50,000 crore equity infusion by way of MSME Fund of Funds for small scale businesses shall boost the sector. As MSMEs face big economic crises, funds with a corpus of Rs.10, 000 crore is to be provided. This equity fund is allotted for all the small scale businesses. It will encourage them to list their place on the main board of the stock exchange. FoF shall be operated through the Mother Fund, and a few daughter funds will help leverage Rs 50,000 crore of funds at the level of daughter funds.
  • Change in the definition of MSME has bestowed a few benefits upon MSME sectors. The investment limit needs to be revisited where new MSMEs have revised upwards. An additional criterion of turnover is added, which will help the MSMEs increase their production capabilities without losing the advantages of being small or micro-unit.
  • Under the very first tranche of Atma Nirbhar Bharat Yojana, the Union government and state ministry will clear every due to MSME within 45 days. E-market linkage shall act as a substitute for trade fairs and exhibitions. Rs 4000crore partial credit guarantee to the banks allotted by the Government for stressed MSMEs
• Rs. 2500 Crore EPF (Employment Provident Fund) facility is available for 367,000 organizations and 72.22 lakh employees of the eligible business. The Government shall also extend contribution to 24% EPF for June, July & August.
  • A relaxation of statutory PF for employers and employees shall be reduced to 10% each from 12% each sector for three months. This implementation avails the liquidity of Rs.6750 crore to employees and employers, which will increase their in-home salary for the next three months. The Atma Nirbhar Bharat Yojana is applicable for workers not eligible for 24% EPF support under PM Garib Kalyan Package and its extension.
  • All the pending refunds to charitable trusts and other non-corporate business professions like proprietorship, partnership, LLP, and Cooperatives are initiated immediately without further delay.
  • To provide more funds at the taxpayers’ disposal, the Tax Deduction rates at Source (TDS) be reduced by 25 of the current rates with effect from1st April 2020 till 31st March 2021 under the Aatm Nirbhar Bharat Yojana package.
  • Under the first tranche of the due date of all income tax return for the year, 2019-20 will be extended from 31^st July 2020 and 31^st October 2020 to 30^th November 2020, and Tax audit be extended from 30^th September 2020 to 31^st October 2020.
  • The Centre to provide Rs.30,000 crore for a special liquidity scheme to support the NBFC/MFIs/HFCs, mutual funds, etc. The Government has launched for mid-size as well as small size non-banking financial companies in the market to reduce their debts in the market. Under the Atma Nirbhar Bharat scheme, investment is assigned for both the primary and secondary market transactions as per the investment-grade debt paper of NBFCs/MFIs/HFCs.
  • By providing Rs. 45000 crore additional credit guarantee scheme for NBFCs, and in case of any loss Government to bear the 20% of the loss.
  • By Infusing Rs.90, 000 crore liquidity for lightning up DISCOMs. PFC/RFC shall infuse Rs.90, 000 crore to the DISCOMs receivables and the loan is granted under the state government’s guarantee for the exclusive purpose of discharging liabilities of Discoms. DISCOMs are payable to the powerhouses and transmission companies, which will create liquidity flow in the power sectors.
  • The extension of registration & completion deadlines under RERA by six months is an adequate provision under Aatm Nirbhar Bharat Yojana. The ministry has announced a relaxation of extension of real estate projects under RERA by six months. The relaxation will relieve real estate agents’ stress to complete the assignments and ensure that they will get their booked houses very much on time if the required period may extend for a further three months.

• The second dose under the scheme is for poor people, including Migrant laborers and street vendors. Detailed elaboration of measures taken up by the Government includes:
  • The Government has announced a new scheme of one Nation one card in favor of migrant workers. The plan is to be implemented from August 2020. Any person falling in the category of laborer, transient, etc., can get a ration for free at any corner of our country for the next three months. Technology Systems is used for enabling the Migrants to access Public Distribution System from any Fair Price market in India by March 2021.
  • Migrant Workers shall benefit from a free supply of food grains and other edibles for three months. The Atma Nirbhar Bharat Yojana shall prove to be helping at least 800 million people in our country.
  • Housing scheme facility is made available to migrant workers and low urban crowds under PM Awas Yojana, where Government houses are converted to a comfortable stay for these workers.
  • An outstanding credit facility worth Rs 5000 crore announced in favor of street vendors that would benefit around 50 lakhs, street vendors.
  • Emergence funds for farmers to be given through Kisan Credit Cards for their welfare. The Finance Minister announced a 2 lakh crore emergency fund in this regard.
  • Under the MUDRA loan scheme, Rs 1,500 crore interest subvention for Sishu loans.
  • Further, allotment of Rs 6000 crore to secure tribals’ employment will increase job opportunities for afforestation and other plantation works.
• The third dose strengthens the infrastructure of agricultural sectors, the animal husbandry, and dairy government. The Government announced an overall amount of Rs 1.5 lakh crore as a farming infrastructure fund.
  • Under Pradhan Mantri Matsya Yojana, Rs. 20,000 is provided to each fisherman and Rs. 10,000 crore to strengthen the micro food enterprises.
  • Rs 1, 00,000 crore allotted to develop farm-gate infrastructure considering set up for cold chains and post-harvest management infrastructure.
  • Rs 500 crore allocated for bee-keeping infrastructure development. The scheme aims for the quality production of honey, storage, marketing, etc.
  • Rs 15,000 crore allotted for the Animal Husbandry Infrastructure Development fund.
  • Rs 4,000 crore were allocated for herbal agricultural produce.
  • Rs 500 crore is allotted to extend the Operation green from tomatoes, onions to various other fruits and vegetables. 50% subsidy facilitated for transportation and cold storages
  • The Government of India is also targetting on the legal framework in the agricultural sectors, including making relevant amendments in the Essential Commodities Act.
  • The Government is taking the initiative for agricultural marketing reforms to enhance farmers’ marketing choices through the central law, which will help the farmers expand their business in open markets, large retailers, and exporters in the proper manner.

• The Fourth and Fifth dose of Rs. 48,100 crore talks about Reformation in the areas like coal, minerals, air space management, defense production, MRO, DISCOMs, atomic energy, etc.
  • Rs 40,000 crore was allocated for the Mahatma Gandhi National Rural Employment Guarantee Act to increase job opportunities.
  • Setting up a new Public Sector Enterprises Policy will enable the consolidation of PSU firms in the strategic sectors.
  • The Finance Minister stated there would be no new Insolvency Proceedings for one year to cater to the MSME sector. The scheme facilitated suspension of the initiation of fresh insolvency proceedings up to one year to help companies impacted by COVID-19.
  • Simplification of the utilization of Indian air space shall reduce air travel costs in this crucial hour.
  • Commercialization of the coal industry and privatization of discoms in metros for smooth-running day-to-day operations.
  • Introducing private companies in the mineral sectors will boost up the employment structure. Around 500 mining blocks be offered in this transparent auction process. Joint auction of bauxite, mineral blocks will increase the healthy competition.
  • The Government may establish the research reactor in PPP mode for the production of medical isotopes for the human welfare of affordable health treatment against cancer and other severe health issues.

Conclusion

The Atma Nirbhar Bharat Yojana package is to ease the difficulties of the migrant laborers, low persons, and farmers who suffered the most during the lockdown imposed due to the coronavirus pandemic. It immensely supports the middle-class crowd who pays their taxes on time and help grow the home industry, including cottage industries, small scale industries, and MSMEs that provide a livelihood and employment to, large no, of people.

Starting this Aatm Nirbhar Bharat Yojana on the go has led to the Reformation and resonates with Sangh’s philosophy to enrich and revolutionize the Indian products. However, in the urge to attain a self-reliant India, the Government must decentralize its policies, make the rural crowd and laborers’ decisions, keep the poor and underprivileged as a priority, and make India a self-sufficient nation globally.

 In history, when India believed in Gandhi’s model of self-reliance, wonders happened. He emphasized social interdependence and mutual co-operation in society. On the contrary, today, a virus has violated our independence, but through Atma Nirbhar Bharat Yojana, we are still trying to restore the industries’ status and become self-sufficient.

While the stimulus package offers relief and exemptions to many sectors, every Indian citizen also has a crucial role. The Prime Minister has urged each one of us to promote and purchase local products more and more. Our Government has done enough by providing the scheme’s blanket around the needy ones, and now we must avail each of its benefits in the best possible manner. We should promote vocal for local and adopt a new lifestyle of being self-dependant and becoming empowered for more fights like this in the future.