'Aatm Nirbhar Bharat ' is India's Prime Minister Narendra Modi's dream of making India a self-reliant nation. Its first mention came in the form of the 'Self-Reliable India Mission' on 12 May 2020 during the announcement of the Economic Package on Coronavirus Epidemic.
The government initially announced the Pradhan Mantri Garib Kalyan Yojana (PMGKY) as interim measures for those affected by the COVID-19 epidemic.
The four-phase Aatm Nirbhar Bharat Campaign (meaning Self-Reliant India Scheme) was announced in May 2020 by Union Finance Minister Nirmala Sitharaman.
The price of the economic stimulus relief package announced by the government has been stated to be Rs 20 lakh crore. This includes the Rs 1.70 lakh crore relief package already announced as PMGKY to lockdown the poor to address the difficulties caused by the coronavirus epidemic and check its spread.
https://www.pmindia.gov.in/en/
The Prime Minister announced that a self-sufficient India should stand on the following five pillars:
1. Economy
2. Land arrangement
3. 21st-century technology-driven systems and systems
4. Demand
5. Vibrant Demography
The Rs 20 lakh crore package constitutes about 10% of the country's GDP. The package emphasizes land, labor, liquidity, and laws.
The package includes measures for many sectors like MSME, cottage industry, middle class, migrants, industry, etc. Many reforms have been announced to make India a self-sufficient economy and mitigate the negative impacts in the future. Some improvements are as follows:
In the following sections, we discuss the four phases of the economic relief package announced by FM.
Extended deadline for income tax returns for the financial year 2019-20 (due date extended to 30 November 2020) Tax deduction rates of Source (TDS) and Tax Collection at Source (TCS) by 25% for next year Has been cut. Under PMGKY, the EPF support provided to low-income workers in small units is being extended for 3 months. The PF payment has been reduced from 12% to 10% for both employers and employees for the next 3 months.
The announced 3 lakh crore emergency credit line will ensure that 45 lakh units will have access to working capital to resume business activity and protect jobs.
A provision of ₹ 20,000 crores as subordinate debt for 2 lakh MSMEs which are stressed or deemed non-performing assets. 50,000 crore equity infusion has been planned through the MSME fund of Rs 50,000 crore fund.
The definition of an MSME is being expanded to introduce higher investment limits and turnover-based criteria. Read more on May 20, 2020, CNA. Government tenders up to ₹ 200 crore will not be allowed for global tenders. The government and central public sector enterprises will release all funds due to MSMEs within 45 days.
30,000 crore special liquidity scheme, under which investment will be made in investment-grade loan papers of NBFCs. Partial loan guarantee scheme under which the government guarantees 20 percent of the first loss to lenders - NBFCs, HFCs, and MFIs with low credit ratings.
₹ 90,000 Cr. Liquidity injections have been announced.
States and Union Territories have been advised to extend the registration and completion date of real estate projects by six months.
The second installment focuses on providing free food grains to migrant workers who do not have ration cards.
The center will spend ₹ 3,500 crores to provide free food grains to migrant workers without ration cards for the next 2 months. This is an extension of PMGKY.
Street vendors will be given access to easy credit through the Rs 5,000 crore scheme, which will offer a ₹ 10,000 loan for initial working capital.
2.5 crore farmers, who are not yet part of the Kisan Credit Card scheme, plan to enroll with fish workers and livestock farmers and provide them Rs 2 lakh crore of concessional loans. 30,000 crore will provide additional refinance assistance to rural banks for crop loans.
Small businesses that have taken loans under the MUDRA-Shishu scheme aimed at loans of 50,000 or less will get 2% interest cess relief for the next year.
The scheme for the construction of rental housing complexes through PPP mode will be launched under the existing Pradhan Mantri Awas Yojana (PMAY) scheme. Both public and private agencies will be encouraged to build rental housing on government and private land while existing government housing will be converted into the rent.
Credit linked subsidy scheme for lower-middle-class housing under PMAY will also be extended from one year to March 2021.
By August 2020, the ration card portability scheme will allow 67 crore NFSA beneficiaries in 23 connected states to use their card at any ration shop anywhere in the country.
States have been directed to nominate migrant workers returning to their places of origin under the MNREGA scheme.
The third installment of the economic relief package focuses on agricultural marketing reforms. Many of the announced reforms are long overdue and are expected to have positive effects for both farmers and consumers.
A plan to enact a central law to allow barrier-free inter-state trade of farm commodities and e-trading. This will allow farmers to sell produce at attractive prices beyond the current mandi system.
Plan to ensure a convenient legal framework for monitoring contract farming. It provides farmers with assured sale prices and quantities before sowing the crop and also allows private players to invest in inputs and technology in the agriculture sector.
The Center will amend the Essential Commodities Act, 1955 to regulate the sale of six types of agricultural produce, including cereals, edible oils, oilseeds, pulses, onions, and potatoes. Stock limits will not be imposed on these items except for national calamity or famine or an extraordinary rise in prices. These stock limits will not apply to processors and exporters.
Investment of 1.5 lakh crore rupees to build farm-gate infrastructure and support logistics needs for fish workers, livestock farmers, vegetable growers, beekeepers, and related activities.
The final installment focuses on the areas of defense, aviation, electricity, minerals, nuclear and space. There is a huge emphasis on privatization. One concern with this set of reforms is that they look more like industrial reforms rather than economic reform packages or incentives.
Provisions to ban the import of certain weapons and platforms to indigenize defense production. There is a provision for a separate budget for domestic capital purchases. This will help reduce the defense import bill and encourage domestic production.
FDI limit in defense construction under the automatic route will be increased from 49% to 74%. The Ordnance Factory Board (OFB) will be listed on the stock market to improve autonomy, efficiency, and accountability.
The government monopoly on coal will be lifted with the introduction of commercial mining on a revenue-sharing basis. The private sector will be allowed to bid for 50 coal blocks. Private players will also be allowed to carry out exploration activities.
Private participation in the space will be encouraged. A level playing field for private players will be created in the space zone, allowing them to use ISRO facilities and participate in space travel and planetary exploration in future projects.
The government will make technology entrepreneurs more widely available to facilitate geospatial data policy, which will ease security measures.
Six more airports are up for auction on private-public participation mode, while additional private investment will be invited at 12 airports. Measures have been announced to ease airspace restrictions that will make the flight more efficient. Rationalization of the MRO (maintenance, repair and operation) structure with the aim of making India an MRO hub.
Power departments/utilities and distribution companies in UT will be privatized based on the new tariff policy to be announced.
Research reactors in PPP mode will be set up to produce medical isotopes.
The four-phase Aatm Nirbhar Bharat Campaign (meaning Self-Reliant India Scheme) was announced in May 2020 by Union Finance Minister Nirmala Sitharaman.
The price of the economic stimulus relief package announced by the government has been stated to be Rs 20 lakh crore. This includes the Rs 1.70 lakh crore relief package already announced as PMGKY to lockdown the poor to address the difficulties caused by the coronavirus epidemic and check its spread.
https://www.pmindia.gov.in/en/
5 important facts about Aatm Nirbhar Bharat scheme
The Prime Minister announced that a self-sufficient India should stand on the following five pillars:
1. Economy
2. Land arrangement
3. 21st-century technology-driven systems and systems
4. Demand
5. Vibrant Demography
The Rs 20 lakh crore package constitutes about 10% of the country's GDP. The package emphasizes land, labor, liquidity, and laws.
The package includes measures for many sectors like MSME, cottage industry, middle class, migrants, industry, etc. Many reforms have been announced to make India a self-sufficient economy and mitigate the negative impacts in the future. Some improvements are as follows:
- Simple and clear law
- Rational taxation system
- Supply Chain Reforms in Agriculture
- Competent human resources
- Strong financial system
Country
|
GDP Percent
|
United States
|
13% (USD 2.7 trillion -
in greatest monetary terms)
|
Japan
|
21.10%
|
Sweden
|
12%
|
Australia
|
10.80%
|
Germany
|
10.70%
|
In the following sections, we discuss the four phases of the economic relief package announced by FM.
1. Aatm Nirbhar Bharat Campaign - Phase 1
The first installment had 16 specific announcements and was spread across MSME, NBFC, real estate, power sectors, etc.Employee / Taxpayer
MSME
A provision of ₹ 20,000 crores as subordinate debt for 2 lakh MSMEs which are stressed or deemed non-performing assets. 50,000 crore equity infusion has been planned through the MSME fund of Rs 50,000 crore fund.
The definition of an MSME is being expanded to introduce higher investment limits and turnover-based criteria. Read more on May 20, 2020, CNA. Government tenders up to ₹ 200 crore will not be allowed for global tenders. The government and central public sector enterprises will release all funds due to MSMEs within 45 days.
NBFC
Discom
Real estate
Aatm Nirbhar Bharat Campaign - Phase 2
Free food
Features of LOAN
2.5 crore farmers, who are not yet part of the Kisan Credit Card scheme, plan to enroll with fish workers and livestock farmers and provide them Rs 2 lakh crore of concessional loans. 30,000 crore will provide additional refinance assistance to rural banks for crop loans.
Disposal relief
Affordable rental accommodation
Credit linked subsidy scheme for lower-middle-class housing under PMAY will also be extended from one year to March 2021.
One Nation One Ration Card Scheme
MGNREGA
Aatm Nirbhar Bharat Campaign - Phase 3
The third installment of the economic relief package focuses on agricultural marketing reforms. Many of the announced reforms are long overdue and are expected to have positive effects for both farmers and consumers.
Interstate trade
Contract farming
Deregulating yield
Agricultural infrastructure
Aatm Nirbhar Bharat Campaign - Phase 4
The final installment focuses on the areas of defense, aviation, electricity, minerals, nuclear and space. There is a huge emphasis on privatization. One concern with this set of reforms is that they look more like industrial reforms rather than economic reform packages or incentives.
Defense
FDI limit in defense construction under the automatic route will be increased from 49% to 74%. The Ordnance Factory Board (OFB) will be listed on the stock market to improve autonomy, efficiency, and accountability.
Minerals
Space
The government will make technology entrepreneurs more widely available to facilitate geospatial data policy, which will ease security measures.
