Policy reforms under Aatma Nirbhar Bharat (Self-reliant India) are all about Prime Minister Modi’s vision of making India a self-reliant nation. The first time we heard of ‘Aatma Nirbhar Bharat Abhiyan‘ or ‘Self-Reliant India ‘ came in the course of the declaration of the COVID-19 pandemic related economic package on May 12, 2020. The Aatma Nirbhar Bharat package is an economic relief package meant to help the Indian economy resurrect itself from the Covid-19 pandemic situation.
Prime Minister Shri Narendra Modi announced the special economic and comprehensive package of Rs 20 lakh crore, which is equivalent to 10% of India’s GDP. Amalgamation of different structural reforms, fiscal and liquidity program, Hon’ble Finance Minister Nirmala Sitharaman on May 17 announced the package of the Rs. 20 lakh crore.
The COVID-19 pandemic has shaken the economic and social strength over the globe. Strict lockdowns imposed by the governments of respective countries during this pandemic have out-turned in the destruction of economies. Even so, the widespread destruction made by the pandemic, so many MNC’s realized to expand their facilities, businesses and are finding out new different places for investment. It has emerged as a golden opportunity for India to urge fresh energies into the aspiring “Make in India” initiative.
India has begun its voyage of policy reforms under Aatma Nirbhar Bharat to build a favorable environment for investors. Here are all the policy reforms under Aatma Nirbhar Bharat, which are to be made under the Atmnirbhar Bharat package.
Under policy reforms under Atma Nirbhar Bharat, the government declared a relief package of Rs 1.70 lakh crore for the poor migrants to help them fight the war against COVID-19. Free food grains like wheat, rice, and pulses to every person for the next three months, a total of 80 crores poor will get the benefit—increment in MNREGA wages, which is Rs 202 each day. Jan Dhan’s account holders of women, which is around 20 crores, will get 500 every month for three months. Health workers in India will get an insurance cover of 50 lakh rupees. With this, Aatmnirbhar Sena takes the initiative to provide financial support to those enthusiastic women entrepreneurs. They are willing to prove their spirit in the patriarchal society and open the door for more women to rise against all the odds and gear up to become entrepreneurs. Eight crore families are all set to get free gas cylinders for the next three months. Rs 2000 to farmers under PM-KISAN Yojana, three crores poor senior citizens, widows, and divyangs will get Ex-gratia of Rs 1000. A credit of 24% of monthly wage will be made in PF accounts for workers who earn less than Rs 15000 per month.
Reduced the cash reserve ratio, which will result in the liquidity of Rs 137000 crores. TLTROs of Rs 100050 crores for new formation in corporate bonds, Rs.50000 crore TLTRO in investing grade bonds, and NDFCs and MFIs. Increased the borrowing limits for banks under MSF, which will permit the banking system to aid additional benefits of Rs.137000 crore at the decreased marginal standing facility. Reserve Bank of India declared the opening of SLF of about Rs 50000 crore for mutual funds to increase liquidity measures.
To boost the businesses in loss, MSMEs will be given up to 20% of outstanding credit. Businesses with Rs 25 crore due and Rs 100 crore turnovers are eligible for collateral-free automatic loans. These loans will have four-year tenure with a halt of 12 months on principal amount repayment. It will benefit 45 lakh units.
The government will create a fund of funds entity of Rs 10000 crores. It will empower MSMEs to get listed on Stock Exchanges.
THE current PCGS plan will be reached out to cover borrowings, for example, essential issuance of Bonds/CPs (risk side of accounting reports) of NBFCs, HFCs, and MFIs with a low credit score. The Center will take an initial 20 % of losses. The plan will bring about the liquidity of Rs 45,000 crores.
Various Central departments, like Railways, Ministry of Road Transport and Highways, Central Public Works Department, will provide an extension up to six months to contractors. Government agencies will be partially releasing bank guarantees to relieve cash flows.
Ministry of Housing and Urban Affairs will direct states and union territories to treat COVID-19 as an event of unforeseeable circumstances under RERA and stretch the registration and completion date by six months for all registered projects expiring on or after March 25, 2020. Regulatory Authorities may further stretch this for three months.
With farming credits of Rs 4.22 lakh crore, three crore farmers are receiving the benefit from three months of loan moratorium. Interest subsidy and brief repayment incentive on crop loans extended up to May 31, 2020. Moreover, 25 lakh new Kisan Credit Cards, with a loan limit of Rs 25,000 crore was endorsed.
The Center will launch a scheme under PMAY for migrant labor and urban poor to simplify living at moderate section. Government-supported housing in the urban will be transformed into affordable rental housing complexes (ARHC) under PPP mode.
During the lockdown period, Minimum Support Price (MSP) acquisition of a sum is more than Rs 74,300 crores. PM KISAN fund Transfer of Rs 18,700 crores. PM Fasal Bima Yojana claim payment of Rs 6,400 crores.
The government will expand investments in public health care services. Under this scheme, health care centers will be increased in rural and urban areas. Hospitals will be built in all districts.
These all policy reforms under Aatma Nirbhar Bharat are a welcome sign to self-reliance and a wide road for new foreign investors to invest in India. Aatmnirbhar Sena will promote sustainable farming techniques to transform the lives of farmers living in India’s rural sections and work for their upliftment. Aatmnirbhar Sena will build an enthusiastic platform to nourish the new talents of promising entrepreneurs and enhance their potential to become prosperous entrepreneurs and dynamic corporate leaders of our country.