Madhavi Gaur
September 30, 2023 02:25
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This article delves into the details of the Atmanirbhar Bharat Abhiyaan, the comprehensive economic stimulus package declared by the Union Government.
Atmanirbhar Bharat Abhiyaan: The COVID-19 pandemic has significantly impacted various facets of the Indian economy and society. This article delves into the details of the Atmanirbhar Bharat Abhiyaan, the comprehensive economic stimulus package declared by the Union Government, covering aspects related to the economy, polity, disaster management, and current affairs, all of which are pertinent to the UPSC syllabus.
Atmanirbhar Bharat Abhiyaan gained prominence on India’s 72nd Republic Day (2021). The Department of Biotechnology showcased the COVID-19 vaccine development process in their tableau.
Initially, the government introduced the Pradhan Mantri Garib Kalyan Yojana (PMGKY) as interim measures to assist those adversely affected by the COVID-19 pandemic.
The Atmanirbhar Bharat Abhiyaan, meaning “self-reliant India scheme,” was announced in four tranches by the Union Finance Minister Nirmala Sitharaman in May 2020.
The economic stimulus relief package, estimated to be worth Rs. 20 Lakh crores, incorporates the previously announced Rs. 1.70 lakh crore relief package, the PMGKY, designed to alleviate the difficulties faced by the poor due to the pandemic and the ensuing lockdown.
The key objectives of the Atmanirbhar Bharat scheme are outlined as follows:
Key features of the Atmanirbhar Bharat mission, aiming to make India self-reliant, include:
The Atmanirbhar Bharat Abhiyaan Package revolves around five focus pillars:
The Atmanirbhar Bharat Abhiyaan is deemed necessary for the following reasons:
The Prime Minister outlined that a self-reliant India should be founded on five pillars:
The package, nearly 10% of the country’s GDP, emphasizes land, labour, liquidity, and laws. It includes measures spanning various sectors, such as MSME, cottage industries, the middle class, migrants, and industry, among others.
Reforms have been announced to transform India into a self-reliant economy and mitigate future challenges. These include simple and clear laws, a rational taxation system, supply chain reforms in agriculture, capable human resources, and a robust financial system.
Now, let’s analyze how India’s relief package compares to those announced by other countries:
| Country | Percentage of GDP |
|---|---|
| USA | 13% (2.7 trillion USD – largest in absolute monetary terms) |
| Japan | 21.1% |
| Sweden | 12% |
| Australia | 10.8% |
| Germany | 10.7% |
In the subsequent sections, we will delve into the details of each tranche of the economic relief package as announced by the Finance Minister.
The first tranche comprised 16 specific announcements, spanning MSME, NBFC, real estate, power sectors, etc.
Atmanirbhar Bharat Abhiyaan – Tranche 1 |
|
|---|---|
| Category | Measures |
| Employees/taxpayers | Extended deadline for income tax returns for the financial year 2019-20 (due date pushed to 30 Nov 2020). The rates of Tax Deduction at Source (TDS) and Tax Collection at Source (TCS) have been cut by 25% for the next year. EPF support extended for another 3 months. PF payments reduced from 12% to 10% for both employers and employees for the next 3 months. |
| MSMEs | ₹3 lakh crore emergency credit line, subordinate debt provision, ₹50,000 crore equity infusion, redefined MSME definition, and more. |
| NBFCs | ₹30,000 crore special liquidity scheme and partial credit guarantee scheme extension. |
| Discoms | ₹90,000 Cr. liquidity Injection. |
| Real Estate | Extension of the registration and completion date of real estate projects by six months. |
The second tranche focused on providing free food grains to migrant workers without ration cards and included credit facilities, One Nation One Ration Card Scheme, and MGNREGA measures.
Atmanirbhar Bharat Abhiyaan – Tranche 2 |
|
|---|---|
| Provision | Details |
| Free food grains | ₹3,500 crores allocated for providing free food grains for migrant workers without ration cards for the next 2 months. Street vendors to get easy credit through a ₹5,000 crore scheme. Plans to enroll 2.5 crore farmers in the Kisan Credit Cards scheme, and more. |
| Credit facilities | Easy credit access for street vendors, additional credit for farmers, and refinance support by NABARD. |
| One Nation One Ration Card Scheme | Ration card portability scheme for 67 crore NFSA beneficiaries. |
| MGNREGA | States directed to enroll returning migrant workers in MGNREGA scheme. |
The third tranche focused on agricultural marketing reforms, including inter-state trade, contract farming, deregulation of produce, and agricultural infrastructure.
Atmanirbhar Bharat Abhiyaan – Tranche 3 |
|
|---|---|
| Provision | Details |
| Inter-state trade | Central law to permit barrier-free inter-State trade of farm commodities and e-trading. |
| Contract farming | Facilitative legal framework for overseeing contract farming. |
| Deregulating produce | Deregulation of the sale of six types of agricultural produce. |
| Agriculture infrastructure | Investment of ₹1.5 lakh crore to build farm-gate infrastructure. |
The fourth tranche emphasized sectors like defense, aviation, power, mineral, atomic, and space, with a significant focus on privatization.
Atmanirbhar Bharat Abhiyaan – Tranche 4 |
|
|---|---|
| Sector | Provisions |
| Defence | Import bans, separate budget for domestic capital procurement, FDI limit increased to 74%, corporatization of Ordnance Factory Boards. |
| Minerals | Removal of government monopoly on coal, introduction of commercial mining, allowing private sector bids for coal blocks. |
| Space | Encouraging private involvement, creating a level playing field for private players in the space sector. |
| Aviation | Auction of six more airports, measures to ease airspace restrictions, rationalizing MRO tax structure. |
| Power | Privatization of power departments/utilities and distribution companies in U.T.s based on a new tariff policy. |
| Atomic | Setting up research reactors in PPP mode for the production of medical isotopes. |
In conclusion, the Atmanirbhar Bharat Abhiyaan is a comprehensive economic stimulus package addressing diverse sectors and aspects, designed to revive and bolster the Indian economy in the wake of the COVID-19 pandemic.
The Atmanirbhar Bharat Abhiyaan, or the Self-Reliant India campaign, stands as the vision for the new India. In 2020, the Prime Minister initiated this campaign, announcing a special economic and comprehensive package of INR 20 lakh crores, equivalent to 10% of India’s GDP. The primary objective is to instill independence and self-reliance across the nation and its citizens in various aspects. The campaign is built upon five pillars: Economy, Infrastructure, System, Vibrant Demography, and Demand.
The goal is to reduce dependency on imports, focusing on substitution while enhancing safety compliance and delivering quality goods to gain a larger share in the global market. Self-reliance, in this context, does not imply isolationist strategies but rather emphasizes extending support globally.
The mission underscores the promotion of “local” products. In tandem with the Atma Nirbhar Bharat mission, the government has undertaken significant reforms, including Supply Chain Reforms for Agriculture, Rational Tax Systems, Simple & Clear Laws, Capable Human Resource development, and a Strong Financial System, all aimed at achieving self-reliance expeditiously.
The significant benefits of Atmanirbhar Bharat Abhiyaan include:
Health Infrastructure Improvement: The initiative aims to uplift the health infrastructure of the country, ensuring better healthcare facilities.
In conclusion, the call for self-reliance (Atmanirbhar Bharat Abhiyaan) by the government demands astute global interlinkages and dense global networks. Trusted connectivity, diversified sources, and resilient financial and trading arrangements are imperative strategic imperatives that require consensus across India’s business community, lawmakers, and all stakeholders.
| Also Read | |
| One Nation One Ration Card Scheme (ONORCS) | PM SVANidhi Scheme |
| Mission Karmayogi | PM AASHA Scheme (Pradhan Mantri Annadata Aay SanraksHan Abhiyan) |
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