Since the days before independence, when movements like the Swadeshi one were initiated, India has been trying to become more self-reliant. The COVID-19 scare and the ensuing shutdown had devastating effects on India’s economy and enterprises.
In response to this crisis, Indian Prime Minister Narendra Modi introduced the Aatma nirbhar Bharat program in an effort to make India a more independent nation so that it could recover more quickly.
What is Atmanirbhar Bharat Abhiyan?
The Prime Minister unveiled the AatmaNirbhar Bharat program. It was a 20 lakh crore economic aid program to help India withstand the current downturn. Economy, infrastructure, systems, a thriving population, and demand were the five pillars upon which this mission’s package rested. In addition, AatmaNirbhar Bharat Abhiyan is actively promoted by (MoTA) via self-reliant initiatives and policies.
Advantages of Atmanirbhar Bharat Abhiyan
Now that you understand AatmaNirbhar Bharat’s overall plan, you can focus on its primary emphasis on rebuilding India’s self-sufficiency in the corporate world.
The government is attempting to remedy the situation with a fresh set of laws after the COVID-19 outbreak caused an instant drop in business and sales. For more contexts on this topic, consider the following advantages of the AatmaNirbhar Bharat mission.
Beneficial for MSMEs and businesses
Businesses, such as cottage industries, MSMEs, middle class, laborers, & others, are the intended beneficiaries of the AatmaNirbhar Bharat scheme’s operations.
The PM Garib Kalyan Package, totaling 1.70 lakhs crores rupees, is intended to provide aid to the poor in the fight against COVID-19.
There have also been efforts to extend the deadline for filing income tax returns, goods and services tax filings, customs clearance, etc. Business loans are available to companies with an outstanding balance of up to 25 crores and a turnover of up to 100 crores.
Opening new growth horizons
The Indian government is also attempting to improve the country’s manufacturing infrastructure through the new AatmaNirbhar Bharat program. New investment can be attracted with the help of the Industrial Land or Land Bank. In addition, a regime of set Rupee or ton prices has been replaced with a revenue-sharing mechanism, which has increased competitiveness in the coal business.
About 50,000 cr. of government money has gone toward expanding the coal industry’s potential for growth through diversification. A streamlined composite exploration-cum-mining-cum-production system will benefit from private investments in the mineral sector.
Backward and poor classes
About three billion farmers have taken out loans totaling nearly four and a half billion dollars. About 80 crore poor individuals would receive 5 kg of wheat and rice for each member for the next 3 months, while healthcare staff will receive insurance coverage of 50 lakhs.
Jan Dhan account for 20 crore women, free gas for 8 crore families with low incomes, a 75% non-refundable advance from the Employee Provident Fund EPF, etc.
More than that, the State Governments intend to use the (SDRF) to build refuges for refugees and supply them with necessities. AtmaNirbhar Bharat Abhiyan’s plan also includes giving out revolving funds to self-help organizations. Thirty percent of rural workers were made eligible for minimum wages, & ARHC were constructed for migrant workers and low-income families in urban areas.
For people engaged in agriculture
Over three crore farmers would receive relief from NABARD’s additional 30,000 crores in emergency working capital. During this time period, investments in the Agri Infrastructure Fund of 1 lakh crores were made, bringing the total amount of money allocated to the PM KISAN fund to over 18,700 crores. In addition, the government has established a scheme worth 10,000 crores to legalize MFEs.
- Unsecured loans totaling three lakh crores rupees approved for small and medium-sized enterprises with yearly revenues of up to 100 crores.
- Discoms and IPPs will receive a bailout investment of 90,000 crores.
- Investing in cold chains, postharvest management, storage, and dairy infrastructure
- To fund agricultural infrastructure projects, NABARD has approved a financing facility.
- Pradhan Mantri Matsya Sampad Yojna for making an improvement in Inland and marine fisheries
- A 30,000 investment in a tailored liquidity scheme for NBFC, HFC, & MFI debt documents
- Businesses are given a grace period before they must pay their GST and income tax
- Budgetary allocations for the betterment of the economy, systems, infrastructure, demographics, & consumer demand.
The Aatma Nirbhar Bharat plan’s development, as you can see, has made a fair effort to make up for COVID-19’s destruction. It’s a government program meant to aid enterprises of all sizes, manufacturers, economically disadvantaged groups, and farming households. If you qualify, you can take use of the many services provided by the Indian government.
Disadvantages of Atma nirbhar Bharat Abhiyan
The credit guarantees & liquidity infusions into banking as well as other financial sector entities rather than the economy as a whole make up the bulk of the monetary component of the Rs 20 lakh crore packages.
The bulk of the package consists of liquidity measures that will be communicated by the Reserve Bank of India (RBI) to financial institutions and ultimately to the general public through those institutions. Inefficient transmission for monetary policy would make this transmission less efficient.
Lack of demand
Due to the shutdown, aggregate demand has dropped, necessitating a fiscal boost. The package, however, has failed to recognize that investment would pick up only when individuals across economic segments have funds to spend because it relies too heavily on credit infusions to stimulate the economy.
Burgeoning fiscal deficit
The government says the stimulus plan will amount to about 10% of GDP in India. However, the government’s focus on fiscal deficit reduction makes it difficult to raise the necessary funds.
Difficulty of mobilizing finances
The government is trying to raise money for the plan by disinvesting. However, most Indian businesses already have too much debt to be able to afford PSU stakes.
In addition, borrowing on foreign markets is challenging because the value of the rupee against the dollar is at an all-time low.
Similarities exist between the economic catastrophe brought on by the Covid-19 outbreak and the economic crisis of 1991, which signaled a paradigm shift through liberalization, privatization, & globalization. If the implementation gap is closed, the period after Covid-19 could usher in hitherto unimaginable possibilities.