Aatma Nirbhar Bharat aims to make the country and its citizens independent and self-reliant in all senses.
The Atmanirbhar Bharat Abhiyan was launched on May 12, 2020, by the Indian Prime Minister, Mr. Narendra Modi, to help the country recover from the economic impact of the Coronavirus pandemic by promoting self-reliance. The scheme’s goal is to turn a crisis into an opportunity by reducing reliance on imports and promoting quality indigenous products.
The Aatma Nirbhar (self-reliance) initiative is built on five key pillars: Economy, Infrastructure, Our System, Demography, and Demand. Following the scheme’s announcement, Finance Minister Nirmala Sitharaman unveiled five separate economic relief packages to support various sectors’ growth. They are;
- To provide relief to the business, additional working capital finance of 20% of the outstanding credit as of 29th February 2020, in the form of a Term Loan at a concessional rate of interest will be provided. This will be available to units with up to Rs 25 crore outstanding and turnover of up to Rs 100 crore whose accounts are standard. The units will not have to provide any guarantee or collateral of their own. The amount will be 100% guaranteed by the Government of India providing a total liquidity of Rs. 3 lakh crore to more than 45 lakh MSMEs.
- Rs 45,000 crore Partial Credit Guarantee Scheme 2.0 for NBFCs, HFCs, and MFIs to do fresh lending to MSMEs & individuals.
- Rs 30,000 crore Additional Emergency Working Capital Funding for farmers through NABARD
- Rs 30,000 crore Special Liquidity Scheme for NBFCs/HFCs/MFIs
- Rs. 1,500 crore Interest Subvention for MUDRA-Shishu Loans
- Rs 2 lakh crore Concessional credit boost to 2.5 crore farmers through Kisan Credit Cards in a Special Drive
- Rs 50,000 crore liquidity through TDS/TCS rate reduction
The Government has the following objectives to fulfill the goals of Aatmanirbhar Bharat Abhiyan.
- Strengthening the local and regional manufacturers and service providers.
- Improvement of the standard of living of citizens by focusing on the trade deficit and the balance of payment.
- Making the country and its citizens self-reliant in all the senses.
- Transforming India into a global supply chain hub.
- Reviving every sector of the economy with a rise in fiscal stimulus.
- High spot on self-reliance with a focus on land, labour, liquidity, reforms, and laws.
- Providing economic stimulus packages equivalent to 10% of the Indian GDP.
Contemplating the role of this sector in Employment generation, promotion of entrepreneurship, regional development, export promotion, innovation, reduction of income disparities, and support for large industries, the Government of India along with the Reserve Bank of India launched the following initiatives.
The below schemes help businesses in the MSME sector and are expected to contribute largely to India’s economic growth.
| Prime Minister’s Employment Generation Programme (PMEGP) | Trade Receivable Discounting System (TReDS) |
| Pradhan Mantri Mudra Yojna (PMMY) | Emergency Credit Line Guarantee Scheme (ECLGS) |
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