Atmanirbhar Bharat Abhiyaan, Features, Benefits, Eligibility

The Atmanirbhar Bharat Abhiyaan is a landmark economic initiative announced by Prime Minister Shri Narendra Modi on 12th May 2020 during the unprecedented global crisis caused by the COVID-19 pandemic. Launched as a comprehensive relief package, the program involves an allocation of Rs. 20 lakh crore, accounting for nearly 10% of India’s Gross Domestic Product. The scheme aims to strengthen India’s economic system, promote self-reliance across sectors, and provide a renewed impetus to the country’s developmental journey in a post-pandemic world. In this article, we are going to cover Atmanirbhar Bharat Abhiyaan, its objectives, features and pillars of the scheme. 

Atmanirbhar Bharat Abhiyaan

The Atmanirbhar Bharat Abhiyaan shows a transformative vision for India, aiming to revive the economy, promote domestic production, and integrate the country into global supply chains while maintaining self-reliance. With targeted interventions across sectors, the initiative is designed to create jobs, enhance liquidity, boost manufacturing, and strengthen governance systems. This campaign gives an opportunity to transform India’s crisis into a chance for economic restructuring and domestic growth, reflecting the philosophy of “Vasudhaiva Kutumbakam”, meaning the world is one family, drawn from the Maha Upanishad. Far from advocating isolationism, Atmanirbhar Bharat emphasizes strategic self-reliance, leveraging indigenous resources, strengthening domestic industries, and enhancing India’s position in the global supply chain.

Atmanirbhar Bharat Abhiyaan Objectives

The primary objectives of the Atmanirbhar Bharat initiative can be categorized as follows:

1. Strengthening Domestic Manufacturing and Services: The program seeks to empower local manufacturers, service providers, and small businesses, thereby reducing dependency on imports.
2. Enhancing Economic Self-Reliance: By boosting indigenous production, the campaign aims to create a self-sufficient economy capable of meeting domestic demand without over-reliance on external markets.
3. Global Supply Chain Integration: India aspires to become a global manufacturing and supply chain hub, facilitating the export of high-quality domestic products.
4. Revival of the Economy Post-Pandemic: Through fiscal stimulus and targeted interventions, the program addresses economic disruption caused by COVID-19, ensuring a sustainable recovery.
5. Focus on Land, Labour, Liquidity, Reforms, and Laws: The initiative emphasizes comprehensive economic reforms, regulatory simplifications, and the modernization of policies to support growth.
6. Incentivization of Farmers and Small Enterprises: Special schemes and financial packages are designed to mitigate the losses suffered by farmers, MSMEs, and street vendors during the pandemic.
7. Overall Improvement in Living Standards: By creating employment opportunities, enhancing production capacities, and increasing accessibility to essential services, Atmanirbhar Bharat aims to improve the quality of life for Indian citizens.

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Atmanirbhar Bharat Abhiyaan Features

The Atmanirbhar Bharat initiative includes many important features designed to make India self-reliant:

1. Job Creation

• Funding under MGNREGA was increased by Rs. 40,000 crore to generate employment opportunities in rural areas, addressing labor shortages and supporting the livelihood of migrant workers.
• The Atmanirbhar Bharat Rozgar Yojana was launched to formalize employment and incentivize job creation in the formal sector.

2. Strengthening Healthcare Infrastructure

• The scheme allocated Rs. 900 crore to the Department of Biotechnology for research and development of COVID-19 vaccines.
• Investments in healthcare systems were increased to enhance pandemic preparedness, capacity building, and public health initiatives.

3. Reforms in Education

• Digital and technology-driven education was prioritized through initiatives like PM eVIDYA, SWAYAM PRABHA DTH channels, and other online education portals.
• The focus is on ensuring equitable access to quality education, particularly in rural and underserved regions.

4. Ease of Doing Business

• Simplification of rules and regulations, particularly in the construction, real estate, and stressed enterprises sector, facilitates smoother business operations.
• Relaxation of General Financial Rules (GFR) and reforms in the Insolvency and Bankruptcy Code (IBC) support financial sustainability and reduce procedural hurdles.

5. Financial Support to Industries

• Introduction of Emergency Credit Line Guarantee Scheme (ECLGS) 2.0 to support 26 stressed sectors identified by the Kamath Committee.
• Policies under Public Sector Enterprise (PSE) reforms incentivize domestic industries and promote self-reliance.

6. Boost to Agriculture

• The government provided an additional working capital of Rs. 30,000 crore through NABARD to support farmers, benefiting around three crore individuals.
• Development of a Rs. 10,000 crore scheme for Micro Food Enterprises (MFE) formalizes small-scale food businesses and strengthens rural entrepreneurship.

7. Support to State Governments

• Borrowing limits for states were increased from 3% to 5% for the financial year 2020–21, ensuring better liquidity for local development and pandemic management efforts.

Indigenization of the Defense Sector

Aligned with the vision of Atmanirbhar Bharat, the Defence Public Sector Undertakings (DPSUs) have indigenized 72 items, making sure that their manufacturing will take place exclusively in India. This move promotes domestic enterprises, reduces dependency on foreign imports, and strengthens India’s defense capabilities. The indigenization policy also encourages private sector participation and innovation in defense technology.

Five Focus Pillars of Atmanirbhar Bharat Abhiyaan

The Atmanirbhar Bharat Abhiyaan anchored on five strategic pillars, which guide its implementation across sectors:

1. Economy: The initiative aims for a quantum leap in economic growth, converting adversity into opportunity while expanding domestic production and investment.
2. Infrastructure: Investments in modern infrastructure serve as a foundation for New India, enhancing connectivity, logistics, and industrial efficiency.
3. Systems: Adoption of 21st-century technology and innovative governance systems replaces outdated methods and regulatory processes.
4. Democracy: A robust democratic framework provides the energy and institutional mechanisms necessary for self-reliance.
5. Demand: Leveraging domestic demand intelligently ensures that production capacities are fully utilized while stimulating consumption.

Atmanirbhar Bharat Abhiyaan Importance

The Atmanirbhar Bharat Abhiyaan initiative holds strategic and economic importance for India:

• Increasing Domestic Manufacturing Share: Despite consistent GDP growth, the manufacturing sector has remained stagnant over the last decade. Atmanirbhar Bharat seeks to increase its contribution to Gross Value Added (GVA).
• Reducing Import Dependence: Encouraging the consumption of indigenous products reduces trade deficits and strengthens fiscal stability.
• Promoting Local Enterprises: The initiative incentivizes small and medium businesses, farmers, and micro-enterprises to engage in domestic production.
• Policy Reforms: By modernizing supply chains, rationalizing taxes, and simplifying laws, the campaign promotes a strong, transparent, and growth-oriented financial system.
• Cultural Alignment: The program emphasizes self-reliance in alignment with India’s cultural and philosophical ethos, as highlighted by the Sanskrit phrase “Eshah Panthah” from the Mundaka Upanishad, meaning “self-sufficient India.”

Atmanirbhar Bharat Abhiyaan Phases

The Atmanirbhar Bharat Abhiyan was rolled out in five phases, each targeting specific sectors and challenges of the Indian economy:

Tranche 1: Micro, Small and Medium Enterprises (MSME)

Announced on 13th May 2020, this tranche focused on MSMEs, labor support, and financial institutions. Key measures included:

• MSME Support: Revised MSME definitions, promotion of e-market linkages, emergency working capital facilities up to Rs. 25 crore, and debt restructuring for two lakh MSMEs.
• Employee Benefits: Extension of Employees’ Provident Fund (EPF) contributions support for 72 lakh workers; reduction of EPF contribution from 12% to 10% to enhance liquidity.
• Financial Institutions: Introduction of Special Liquidity Scheme worth Rs. 30,000 crore for NBFCs, HFCs, and MFIs; partial credit guarantee schemes revamped to cover losses of lenders.
• Power Sector: Injection of Rs. 90,000 crore liquidity into DISCOMs to clear dues to power generators.
• Real Estate & Construction: Invocation of Force Majeure clauses under RERA, extending project deadlines by six months.
• Tax Measures: Immediate release of pending income tax refunds, reduction in TDS/TCS by 25%, and extension of income tax filing deadlines.

Tranche 2: Migrants, Farmers, and Street Vendors

This tranche aimed at supporting vulnerable populations and boosting consumption:

• Food Security: Free supply of grains, including Chana, for migrants; portability of ration cards extended in 23 states.
• Housing: Affordable Rental Housing Complexes under PPP for migrant workers and urban poor.
• Credit Facility: Support to street vendors via PM SVANIDHI Scheme; interest subvention on MUDRA loans for small borrowers.
• Employment Generation: Utilization of CAMPA funds to create jobs in urban, semi-urban, and rural areas.
• Agriculture: Inclusion of fishermen and animal husbandry farmers under Kisan Credit Card Scheme; NABARD refinance support for crop loans.

Tranche 3: Agriculture and Governance Reforms

This phase focused on agricultural infrastructure, herbal cultivation, animal husbandry, and administrative reforms:

• Agriculture Infrastructure Fund: Rs. 1 lakh crore allocated to develop farm-gate and aggregation points.
• Herbal Cultivation: Promotion along the banks of the Ganga via National Medicinal Plants Board.
• Micro Food Enterprises: ‘Vocal for Local with Global Outreach’ initiative formalizing and technically upgrading MFEs.
• Animal Husbandry: PM Matsya Sampada Yojana, national vaccination programs for FMD and Brucellosis, and creation of an Animal Husbandry Infrastructure Development Fund.
• Governance Reforms: Deregulation of foodstuff stock limits, formulation of policies for barrier-free inter-state trade.

Tranche 4: Structural Reforms in Strategic Sectors

Key reforms in coal, minerals, defense, civil aviation, power, space, and atomic energy sectors were introduced:

• Coal Sector: Liberalization of commercial mining and promotion of coal gasification.
• Minerals: End of monopoly in mining blocks; development of mineral indices.
• Defense: FDI limit increased to 74%; corporatization of Ordnance Factory Board; indigenization of weapons.
• Civil Aviation: Transfer of six airports to PPP; easing airspace restrictions; rationalization of MRO taxation.
• Power: Privatization of power departments in Union Territories; tariff policy reforms.
• Space and Atomic Energy: Private sector encouraged to invest; flexible geospatial data policies; technology incubation linked to startups.

Tranche 5: Health, Education, and Governance

The final tranche emphasized public health, education, employment, and state support:

• Health Sector: Establishment of Infectious Diseases Hospital Blocks and Public Health Units; implementation of National Digital Health Mission.
• Education: PM eVIDYA and Mano Darpan for mental well-being; National Foundational Literacy and Numeracy Mission for learning assessment.
• MGNREGA: Additional funds for migrant worker employment.
• Business Law Relaxation: Decriminalization of minor procedural offenses under Companies Act; reduction in insolvency thresholds.
• State Support: Borrowing limits raised from 3% to 5% for 2020–21.

Atmanirbhar Bharat Abhiyaan Benefits

The Atmanirbhar Bharat Abhiyaan offers multiple benefits to the Indian economy:

• Job Creation: Generates employment in manufacturing, agriculture, and under MGNREGA.
• Credit Support: Provides liquidity and credit facilities to MSMEs and stressed industries.
• Economic Stimulus: Infuses liquidity into banking and financial systems to stimulate production and demand.
• Support for Migrant Workers: Direct cash transfers enhance consumption and reduce vulnerability.
• Private Sector Participation: Opens strategic sectors like space and coal to private investment.
• Healthcare Enhancement: Strengthens the country’s health infrastructure and pandemic preparedness.

Atmanirbhar Bharat Abhiyaan Challenges in Implementation

Despite its promise, many challenges impede the full potential of Atmanirbhar Bharat:

1. Overestimation of Package Size: Economists note that actual government expenditure is closer to 1% of GDP, as the package includes RBI actions not directly funded by the government.
2. Delayed Credit Effects: While DBTs ensure direct spending reaches citizens, credit easing through banks may take time due to cautious lending practices.
3. Demand-Side Limitations: The package focuses primarily on supply-side measures, with limited direct stimulus to boost consumer demand.
4. State Government Support: Inadequate transfer of funds to states hampers localized pandemic response and development initiatives.