Self-Reliant India (Aatmanirbhar Bharat)
Emphasizing that the special economic package would focus on land, labour, liquidity and laws, PM Modi said it would benefit labourers, farmers, honest taxpayers, MSMEs and cottage industry.
- What is Self-Reliant India and when did it start?
- What should we do to make India a Self-Reliant India?
- Why does India need a Self-Reliant India?
- Government Reforms and Enablers
- Health Related Steps taken so far for COVID containment
- Reforming Governance for Ease of Doing Business
- Recent Corporate Law measures for Ease of Doing business
- Technology driven System- Online Education during COVID
- Rs. 40,000 crores increase in allocation for MGNREGS to provide employment boost
- Technology Driven Education with Equity post-COVID
- Further enhancement of Ease of Doing business through IBC related measures
- Overall Stimulus provided by Self-Reliant India Package
What is Self-Reliant India and when did it start?
Towards the closing days of Lockdown 3.0 Prime Minister Modi gave the nation a clarion call of AatmaNirbhar Bharat (Self-Reliant India). Amplifying his earlier statement of “Jaan Bhi Jahan Bhi”, he asserted that “we have to protect ourselves and move ahead as well”. He also announced a special economic package, and said the recent decisions by the government, the decisions by the RBI combined with the May 12 financial package announcement come to about ₹20-lakh-crore — nearly 10% of India’s GDP.
PM said, “Corona crisis has also taught us the importance of local supply chains. Time has taught us that we have to now think local. Even global brands were once local. When people used it, branded these products, marketed them, those products became global from local. India need to be vocal for our local products. Not just buy but also publicise them. and PM said That which is in your control gives you happiness. We have to move ahead with new energy. We and we will make “India self-reliant.PM Modi also enunciated five pillars of AatmaNirbhar Bharat Abhiyan.
These five pillars are the following.
- Technologically driven systems
- Demand – India need to stoke demand and every spoke of our supply chain has to be strengthened
What should we do to make India a Self-Reliant India?
India need to develop the talent and infrastructure for designing and producing products which compete with market leaders like I-phone, BMW,Samsung, Nike, Gucci, Honda, Google, Android etc. without compromising on quality yet cheaper and affordable. Quality, reliability, visibility, affordability and ease of access are a few essentials for brand acceptability. As PM had said self-reliance does not mean using only swadeshi products but implies producing world-class quality products which would sell not only domestically but globally.
Why does India need a Self-Reliant India?
China’s weakened global position is a God sent golden opportunity for India to attract more investment by providing environment for a new world factory. To begin with companies which already have some manufacturing in India may be interested to reduce stakes in China and scale up production in India. India will have to not only provide supply chain infrastructure like large ports and highways, top quality and cheap labour and sophisticated logistics but continuity, stability and sincerity in our policies and regulations. A consistent and transparent FDI policy is also warranted. Bharat also needs to integrate with already existing regional supply chains through bilateral and multilateral agreements.
In order to be “vocal for local” aggressive brand promotion will be needed. Extensive use of television and social media platforms like You Tube, Facebook and others will enable instant brand visibility. It is the best opportunity for existing Indian companies like Reliance, Tata, Mahindra, TCS, Infosysetc to establish them as world class brands through aggressive advertising and turn this short term crisis into a long-term opportunity.
Make in India, Make for India, Make for World, the quintessential requirement of inclusivity is the key to provide global reach to the Vocal for Local programme-the spirit behind AatmNirbhar Bharat.
Government Reforms and Enablers
Health Related Steps taken so far for COVID containment
Already announced -Rs. 15,000 crore
- Released to states
- Essential items
- Testing labs and kits
- Insurance cover of Rs 50 lakhs per person for health professionals under Pardhan Mantri Garib Kalyan Yojana.
Protection to Health Workers
- Amendment in Epidemic Diseases Act
- Adequate provision for PPEs-
- From zero to >300 domestic manufacturers
- Already supplied- PPEs(51 lakhs), N95 masks(87 lakhs) and HCQ tablets(11.08 Cr)
Reforming Governance for Ease of Doing Business
- Globally, potential investors look at a country’s Doing Business Report (DBR) ranking
- Sustained measures taken have resulted in steadily improving India’s position in World Bank’s (DBR)rank from 142 in 2014 to 63 in 2019
Recent Corporate Law measures for Ease of Doing business
- Timely Action during COVID-19 to reduce compliance burden under various provisions of the Companies Act,2013 as well as enable Companies conduct Board Meetings, EGMs & AGMs, Rights issue by leveraging the strengths of Digital India
- In 221 resolved cases, 44% Recovery has been achieved since inception of IBC, 2016
- Admitted claims amount to Rs. 4.13 Lakh Crores
- Realizable amount is Rs. 1.84 Lakh crores
- Under IBC, 13,566 cases involving a total amount of Rs. 5.01 Lakh crores (approx.) have been withdrawn before admission under provisions of IBC till 29th Feb 2020.
Technology driven System- Online Education during COVID
- SWAYAM PRABHA DTH channels to support and reach those who do not have access to the internet. 3 channels were already enmarked for school education; now another 12 channels to be added.
- Coordination with States of India to share air time (4 hrs daily) on the SWAYAM PARBHA channels to telecast their education releted contents.
- DIKSHA platfrom has had 61 crore hits from 24th March.
- 200 new textbooks added to e-Paathshaala
Rs. 40,000 crores increase in allocation for MGNREGS to provide employment boost
- Government will now allocate an additional Rs. 40,000 crores under MGNREGS
- Will help generate nearly 300 crore person days in total
- Address need for more work including returning migrant workers in Mansoon season as well
- Creation of Larger number of durable and livelihood assets including water conservation assets
- Will boost the rural economy through higher production.
Technology Driven Education with Equity post-COVID
- PM eVIDYA– A programme for multi-mode access to digital/online education to be launched immediately; consisting of:
- DIKSHA for school education in states/UTs: e-content and QR coded Energized Textbooks for all greads (one nation, one digital platform)
- One earmarked TV channel per class from 1 to 12 (one class, one channel)
- Extensive use of Radio, Community radio and Podcasts
- Top 100 universities will be permitted to automatically start online courses by 30th May, 2020.
Further enhancement of Ease of Doing business through IBC related measures
- Minimum threshold to initiate proceedings raised to Rs. 1 crore (from Rs. 1 lakh, which largely insulates MSMEs).
- Suspension of fresh initiation of insolvency proceedings up to one year depending upon the pandemic situation.
- Empowering Center Government to exclude COVID 19 related debt from the defination of “default” under the Code for the purpose of triggering insolvency proceedings.
Overall Stimulus provided by Self-Reliant India Package
|SN||ITEM||Rs. (In crores)|
|1||Emergency W/C Facility for businesses,incl MSMEs||3,00,000|
|2||Subordinate Debt for Stresses MSMEs||20,000|
|3||Fund of Funds for MSME||50,000|
|4||EPF Support for Business & Workers||2,800|
|5||Reduction in EPF rates||6,750|
|6||Special Liquidity Scheme for NBFC/HFC/MFIs||30,000|
|7||Partial credit guarantee Scheme 2.0 for Liabilities of NBFCs/MFIs||45,000|
|8||Liquidity Injection for DISCOMs||90,000|
|9||Reduction in TDS/TCS rates||50,000|
|10||Free food grain supply to Migrant Workers for 2 months||3,500|
|11||Interest Subvention for MUDRA Shishu Loans||1,500|
|12||Special Credit Facility to Street Vendors||5,000|
|14||Additional Emergency Working Capital Through NABARD||30,000|
|15||Additional credit through KCC||2,00,000|
|16||Food Micro enterprises||10,000|
|17||Pradhan Mantri Matsya Sampada Yojana||20,000|
|18||TOP to TOTAL: Operation Greens||500|
|19||Agri Infrastructure Fund||1,00,000|
|20||Animal Husbandry Infrastructure Development Fund||15,000|
|21||Promotion of Herbal Cultivation||4,000|
|23||Viability Gap Funding||8,100|
|24||Additional MGNREGS allocation||40,000|
|25||Earlier Measures incl PMGKP||1,92,800|