Atmanirbhar Bharat Abhiyan, On 12 May 2020 Prime Minister Narendra Modi announced a special financial package of Rs. 20 lakh crore under Atmanirbhar Bharat Abhiyan. This package is equivalent to 10% of India’s Gross Domain Product (GDP). Making India independent against challenging global supply chain competition is the main motive behind this scheme.
Through this scheme, the Indian government intended to support the laborers, migrants, and poor who got affected by the COVID-19 pandemic. Various sections such as the middle class, industries, MSMEs, cottage industry got served through the Atmanirbhar Bharat package.
Consequently, through press conferences the Finance Minister Smt. Nirmala Sitharaman declared all the details of the actions delivered under the Atmanirbhar Bharat Abhiyan. These measures are delivered to cover various sectors and help everyone who got impacted by the pandemic. The measures of the scheme were promoted by maintaining the five pillars of Atmanirbhar Bharat Abhiyan. These five pillars are the pillars for making India self-reliant.
Five Pillars Of Atmanirbhar Bharat Abhiyan:
The five pillars of Atmanirbhar Bharat Abhiyan are as follows-
- Economy – That brings quantum jump preferably than gradual change.
- Infrastructure – To evolve the uniqueness of modern India.
- System – That is driven by technology and a system not based on past policy.
- Demography – The strength of India is its demography, and it is also a source of power for self-reliant India.
- Demand – The demand and supply chain in the economy is the strength that must be harnessed to its rightful potential.
Measures Provided Under Atmanirbhar Bharat Abhiyan:
The different standards are launched by the Indian Government under the Atmanirbhar Bharat Abhiyan in various sectors are as follows-
Micro Small and Medium Enterprises Improvements:
- Banks and Non-Banking Financial Companies (NBFCs) are to grant Emergency Credit Line Guarantee Schemes (ECLGS) to businesses and MSMEs for up to 20% of the entire outstanding credit by 29/2/2020.
- Rs 20,000 crores will be allocated as subordinate debt for stressed MSMEs.
- Rs 50,000 crore will be allocated for equity infusion for MSMEs through the ‘Fund of Funds’, which are doing viable business but require assistance due to the ongoing pandemic.
- Increasing the upper limits for the definition of MSME by increasing the investment and turnover specified for MSME.
- Under this new definition, MSME will be classified under the criterion of investment and turnover, which is the same for both firms in the manufacturing and service sectors.
- To prevent foreign companies from competing with MSMEs in government procurement tenders, global tenders of up to Rs.200 crore will be disallowed.
Agriculture, Fisheries and Food Processing Sectors Improvements:
- Rs.1 lakh crore for Agri Infrastructure Fund to farmers for the farm-gate framework.
- Rs.10,000 crore scheme for Formalisation of Micro Food Enterprises (MFE).
- Rs.20,000 crores for fishermen through Pradhan Mantri Matsya Sampada Yojana (PMMSY).
- Rs.15,000 crores for Animal Husbandry Infrastructure Development Fund was set up to support private assets in Dairy Processing, cattle feed infrastructure, and value addition.
- Rs.4,000 crores for promotion of Herbal Cultivation with an outlay.
Reforms For Employment and Ease of Doing Business:
- Rs.40,000 crores for Mahatma Gandhi National Rural Employment Guarantee Act 2005 (MGNREGA) for boosting employment.
- To make doing business easier, the Companies Act, 2013 will be decriminalized.
- Permission will be granted for direct listings by Indian publicly-listed companies outside India.
- Companies listing non-convertible debentures on stock exchanges won’t be considered listed companies.
- Provisions of the Companies Act, 1956 pertaining to Producer Companies (Part IXA) will be included in the Companies Act, 2013.
- Power to the National Company Law Appellate Tribunal (NCLAT) for constructing extra or specialized benches.
- Decreasing the penalties for all defaulting for One-person Companies, Small Companies, Producer Companies, and Startups.
Reforms For Poor, Farmers and Migrant Workers:
- Introduction of One Nation One Card. The migrant workers can access the Public Distribution System, i.e. Ration from the Fair Price Shop situated anywhere in India under the scheme of One Nation One Card.
- Provided living facilities to the migrant labours and urban poor at affordable rent under the PMAY (Pradhan Mantri Awas Yojana).
- PM Svanidhi scheme launched to facilitate easy access to credit for urban street vendors.
- NABARD extended Rs.30,000 crore additional re-finance support for meeting crop loan requirements of Regional Rural Banks and Rural Cooperative Banks.
- A special drive to give concessional credit to PM-KISAN beneficiaries through the Kisan Credit Cards. Animal Husbandry Farmers and Fishermen are also included in this drive.
Sectors to benefit from Atma Nirbhar Bharat Abhiyan:
Atmanirbhar Bharat Abhiyan 2.0:
Atmanirbhar Bharat Abhiyan 2.0 was announced on 12 October 2020 after the announcement of Prime Minister Atmanirbhar Bharat Abhiyan on 12 May 2020. Under Atmanirbhar Bharat Abhiyan 2.0-
- SBI Utsav Cards were distributed under this scheme
- Rs.3,621 crores were sanctioned for the 11 States for the capital expense as an interest-free loan.
- LTC Voucher schemes were launched.
- Additional capital expenditure of Rs.25,000 crore was delivered to the Ministry of Road Transport and the Ministry of Defence under the Atmanirbhar Bharat Yojana 2.0 scheme.
Atmanirbhar Bharat Abhiyan 3.0:
The Finance Minister, Smt. Nirmala Sitharaman, along with the Minister of State for Finance and Corporate Affairs, Shri. Anurag Thakur launched the Atmanirbhar Bharat 3.0 on 12 November 2020 for boosting the Covid-hit economy.
They announced 12 announcements under the scheme depending on job creation and tax relief in the housing sector. Announcements under Atmanirbhar Bharat Scheme are as follows-
- For the creation of new employment opportunities, the launch of Atmanirbhar Bharat Rozgar Yojana.
- Launch of ECLGS 2.0 for supporting stressed sectors with a tenure of 5 years, including a moratorium of 1 year.
- Rs.1.46 lakh crore for Atmanirbhar Manufacturing Production Linked Incentives (PLI) for 10 champion sectors.
- Rs.18,000 crores of additional outlay were delivered for the PMAY-Urban.
- The performance security on contracts was reduced to 3% instead of 5-10% to ongoing contracts free of confrontations and Public Sector Enterprises to back infrastructure and construction.
- Demand booster for the Residential Real Estate Income Tax relief for the Home Buyers and Developers from 10% to 20% (under section 43CA) for only primary sale of residential units valuing up to Rs.2 crore.
- Rs.6,000 crore Equity infusion in NIIF Debt Platform and Rs.1.10 lakh crore Platform for Infra Debt Financing.
- Rs.65,000 crores for subsidized fertilizers for helping 140 million framers.
- Rs.10,000 crores of additional outlay was provided for Pradhan Mantri Garib Kalyan Rozgar Yojana.
- Rs.3,000 crores released to EXIM Bank for promoting the export projects through lines of credit under the IDEAS scheme.
- Rs.10,200 crores of additional outlay towards Capital and Industrial expenditure.
- Rs.900 crores provided for the COVID Suraksha Mission for Research and Development of Indian COVID-19 Vaccine to the Department of Biotechnology.