The Atma Nirbhar Bharat scheme was started by the Government of India in 2020 to overcome the impacts of COVID-19 on India’s economy and shape the country into an Atma Nirbhar Bharat. This scheme was launched by the current Prime Minister of India ‘Narendra Modi’s Atma Nirbhar Bharat scheme. It is designed to boost local production, support new businesses and product development, and minimize foreign dependency throughout sectors of the economy.
Understanding Atma Nirbhar Bharat
The term ‘Atma Nirbhar Bharat’ translates to self-reliant economy, but the linguistic translation does not fully capture the vision. It envisions India as a centre of supply chain networks, where imports and exports coexist with domestic production. The scheme focuses on innovation to develop capacities, support industries, and build an environment of sustainable development.
The initiative also aligns with the government’s Vocal for Local principles that encourage citizens to patronize domestic products and services. In this way, the government expects to set off, which will have a positive impact on domestic industries, employment generation and development of rural areas.
Key pillars of Atma Nirbhar Bharat
The campaign is built on five key pillars:
- Economy: Securing quantum leaps in economic activities thus distinguished from gradualism.
- Infrastructure: Creating physical capital structures that provide for the future economic dreams of a region.
- System: Improving governance and increasing the use of modern technology-based systems in the present systems.
- Demography: Capitalizing the demography of India, which is one of the youngest population bases in the world.
- Demand: Developing appropriate and high-demand domestic markets, hence stimulating production and consumption.
Components of the Atma Nirbhar Bharat Package
To realize Atma Nirbhar Bharat, the government announced fiscal measures totalling INR 20 lakh crore, equivalent to 10 per cent of India’s GDP. This package was implemented in stages and targeted different sections of the economy.
- Micro, Small and Medium Enterprises (MSME): Atma Nirbhar Bharat Package paid special attention to the Micro, Small and Medium Enterprises (MSME). Liquidity problems were solved by implementing automatic and collateral-free loans and subordinate debts for troubled, strategic stakeholders. Also, there was a refinement of the definitions of MSMEs that were used to expand the number of enterprises that could qualify for the scheme.
- Agriculture and allied activities: Policy changes in agriculture and allied activities addressed inequities in farmers’ operations and increased rural income. The Essential Commodities Act was amended to dismantle restrictions on agricultural products, while the Agriculture Infrastructure Fund was created to ensure the development of infrastructure. The initiative also recommended contract farming and the elimination of hindrances to cross-state sales and purchases of produce to make the market for agricultural products relatively more centralized.
- Financial sector: The problems in the financial sector are some of the most crucial areas that received necessary changes in an attempt to help both corporations and households replenish the sector’s liquidity. These included suspension of operations as a means of reducing credit pressure, liquidity facilities for NBFCs, HFCs, and mutual funds and credit enhancement for pressured sectors. These steps were essential in coming up with solutions that would ensure that there was some stability in the monetary markets while at the same time promoting the growth of the commercial markets during such brutal eras.
- Industrial and manufacturing sectors: To support industrial and manufacturing development, the government has implemented various measures to encourage local production. These include Production-Linked Incentive (PLI) schemes targeting areas such as electronics, pharma, and garments. The government has also eased labour laws to encourage big-ticket investment. In addition, tax adjustments and incentives have made the country more investor-friendly for manufacturing businesses.
- Digital India and Innovation: Atma Nirbhar Bharat also placed a great emphasis on technology and its positive use in times of crisis. The government encouraged startup innovation centres to foster startups. Another attempt was to increase the availability of broadband networks in rural regions so that citizens could access equal opportunities. Also, the development of the digital payment system, including e-governance affairs, serves as proof that technology is a backbone for the self-reliant economy.
These measures are intended to create economic resilience or fore and indigenization of the domestic economy through Atma Nirbhar Bharat.
Eligibility for participation in the Atma Nirbhar Bharat Scheme
Participation in the scheme’s benefits depends on specific eligibility criteria tailored to different sectors. The subsidy and incentives available for MSMEs under the new definition include access to loans. Farmers and the agricultural stakeholders benefit from reforms, infrastructure funds and subsidies. Ventures in essential segments, including technology and production, are benefactors of the (Production incentives) PLI scheme; at the same time, massive industries in strategic areas can claim tax exemptions and easy, hassle-free procedures.
Impact of Atma Nirbhar Bharat
The plan has considerably increased local production, including through PLI schemes that have spurred capital investments and capacity building in sectors such as electronics, textiles, and automobiles. Government policies are enacted individually for rural development, and the lives of farmers and farming communities have been enhanced through the introduction of programs like PM Garib Kalyan Anna Yojana to provide food security for people in need.
The Atma Nirbhar Bharat has stimulated many employment opportunities in startup industries for local production, especially in rural and semi-urban areas. In the sphere of financial reforms, the liberalization of the financial sector has made India’s financial sector more robust; on the other hand, the encouragement of innovation has set startup India on a record high.
Conclusion
The Atma Nirbhar Bharat Scheme is one of the most significant policies that support innovation in local industries. The initiative is providing a solid foundation for transforming India into one of the global economic giants it is in the process of becoming. Thus, as the nation grows, the idea of making India a ‘self-reliant’ economy remains the driving force behind work across industries towards sustainable development that is immune to shocks in the years to come.
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