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AATMA NIRBHAR
BHARAT
March 27, 2021
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Atmanirbhar Bharat Abhiyaan or Self-reliant India
campaign is the vision of new India envisaged by
the Hon'ble Prime Minister Shri Narendra Modi. On
INTRODUCTION
12 May 2020, our PM raised a clarion call to the
nation giving a kick start to the Atmanirbhar Bharat
Abhiyaan (Self-reliant India campaign) and
announced the Special economic and
comprehensive package of INR 20 lakh crores -
equivalent to 10% of India’s GDP – to fight COVID-
19 pandemic in India.
WHAT IS THE CONCEPT BEHIND ATMA 03
NIRBHAR BHARAT ABHIYAN?
The focal point of the concept is to make the nation self-reliant in all spheres-
from manufacturing to supplying with more focus on local manufacturers and
service providers. It will help the country to reduce its dependence on imports
and may also give a boost to exports.
The fall in imports will help reduce the trade deficit and will eventually lead to
trade surplus.And will also ensure that the country is able to sustain and tackle
any black swan event that may emerge in future.
The package will focus on land, labour, liquidity and laws, so as to achieve self-
reliance. The relief measures were announced in tranches by the Finance Minister
Nirmala Sitharaman.
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ATMA NIRBHAR BHARAT
ABHIYAN PACKAGE BREAKUP
Now, let us take a look at the complete break-up of the Atma Nirbhar Bharat
Abhiyan launched to make India ‘self-reliant’ amid and post Covid-19 times.
Tranche 1 -These set of relief measures are worth Rs 5,94,550 crore and
includes funding as well as loan guarantees for MSMEs, NBFCs/HFCs,
discoms, contractors, real estate and salaried workers.
Tranche 2 - These set of relief measures are worth Rs 3,10,000 crore with
focus on migrant workers, small farmers, street vendors and the poor
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ATMA NIRBHAR BHARAT ABHIYAN
PACKAGE BREAKUP
Tranche 3 -These sets of relief measures are worth Rs 1,50,000 crore. The
core focus of these measures is on the agriculture and allied sectors like dairy,
animal husbandry, and fisheries so as to strengthen the overall farm sector.
Tranche 4 -These sets of measures are worth Rs 48,100 crore with a focus on
8 critical sectors which are Coal, Minerals, Defence Production, Airspace
management, Social Infrastructure Projects, Power distribution companies,
Space sectors, and Atomic Energy.
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SECTORS BENEFITTED FROM ATMA
NIRBHAR BHARAT ABHIYAN
Micro, Small and Medium Enterprises-
The schemes major focus was on MSMEs sector and its development as there
are about 67 million MSMEs operating in the non-agricultural sector in India. The
government will offer Rs 3 lakh crore as collateral free or unsecured loan to
MSMEs with an annual turnover of Rs 100 crore or an outstanding loan of Rs 25
crore. The loan tenure will have tenure of four years with a moratorium period of
12month. Additionally, Rs 20,000 crore loans will be provided to stressed
MSMEs. It will help resume businesses, strengthen the supply chain and will
also help reduce dependence on other countries.
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SECTORS BENEFITTED FROM ATMA
NIRBHAR BHARAT ABHIYAN
Power Distribution Companies-
The government will provide Rs 90,000 crore
bailout to cash starved discoms and
independent power producers.
Discoms functioning in Union Territories are
expected to be privatized, so as to strengthen
as well as bring efficiency to the entire sector.
Thus, provide stability to the stressed power
sector.
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SECTORS BENEFITTED FROM ATMA
NIRBHAR BHARAT ABHIYAN
Agriculture and allied sectors-
The fiscal assistance will focus on improving the farm gate infrastructure like
warehousing, cold chains, post harvest management infrastructure, dairy
infrastructure along with investment in cattle feed, beekeeping and herbal and
medicinal plants.
It will also focus on formulating agricultural marketing reforms like barrier-free
inter-state trading, the choice to sell produce at attractive prices, and also
provide an e-trading platform for agricultural produce.
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SECTORS BENEFITTED FROM ATMA
NIRBHAR BHARAT ABHIYAN
Civil Aviation-
The government will ease the restriction placed on the utilization of the Indian
Air Space for commercial flights (currently 60% of domestic airspace is
available), and will help these companies save about Rs 1000 in terms of
operational costs.
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SECTORS BENEFITTED FROM ATMA
NIRBHAR BHARAT ABHIYAN
Coal Sector and Minerals-
The government will be ending the monopoly of Coal India Ltd (CIL), by
introducing commercial mining of coal. The government is focusing to reduce
the country’s dependence on coal import and be fully self-reliant in coal
production.
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SECTORS BENEFITTED FROM ATMA
NIRBHAR BHARAT ABHIYAN
Real Estate-
The government has extended the CLSS (Credit Linked Subsidy Scheme) for
middle-income households to March 2021. This will lead to investments of Rs
70,000 crore in the housing sector, thus boosting the already ailing real estate
sector. The states and regulatory authorities have also been advised to extend
the registration and completion date of real estate projects under RERA to de-
stress developers and ensure timely completion of projects.
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SLOGANS
Vocal for local
Not only should products be 'made in India', but the
promotion of those products should take place so as to
make those products competitive. During the
Independence Day speech in 2020, Prime Minister
Modi said that "The mindset of free India should be
'vocal for local'. We should appreciate our local
products, if we don't do this then our products will not
get the opportunity to do better and will not get
encouraged."
Make for the world
13 SLOGANS Prime Minister Modi, during the 2020 Independence
speech, said that 'make for world' should go hand in
hand with 'make in India' and that the slogan 'make for
world' should be a key slogan like 'make in India' is. A
variation of the slogan is "Make in India for the world".
ATMA NIRBHAR BHARAT
ABHIYAN SHORTCOMINGS:
14 The package, however, failed to boost the confidence and bring
optimism among the corporates, as the focus of the package is
more on indirect benefits than on direct benefits.
The government should have designed packages that would
provide cash support rather than relying more on loans.
The collateral-free or unsecured loans announced for MSMEs may
lead to higher default by the companies and lead to higher NPAs.
ATMA NIRBHAR BHARAT
ABHIYAN SHORTCOMINGS:
The banking sectors, especially the PSU, are already reeling under
15 the bad loan issues and with unsecured loans, may see further
deterioration in their asset quality.
Higher default rates will also increase the cost burden of the
government, as it may have to provide cushion to the ailing banks.
The total government expenditure that will be incurred through the
package is only 1% of India’s GDP growth. As such these measures
will not be adequate enough to boost the demand sentiment in the
economy.
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THANK YOU
The banking sectors, especially the PSU, are
BIBLIOGRAPHY already reeling under the bad loan issues and
with unsecured loans, may see further
deterioration in their asset quality.
Higher default rates will also increase the
cost burden of the government, as it may
have to provide cushion to the ailing banks.
The total government expenditure that will be
incurred through the package is only 1% of
India’s GDP growth. As such these measures
will not be adequate enough to boost the
demand sentiment in the economy.
