SELF RELIANT INDIA
DUTY – A PIVOT IN OUR ECONOMY
Dr. Shweta Kapse
Abstract
From last one year our community has been in the fight against Corona virus. During this period more than eighty five lakh people across the world have been infected with this disease and out of them more than six to seven Lakh people have died tragically.
Our Prime Minister during his address to the Nation mentioned that a virus has destroyed the world. This crisis is impossible as well as unparalleled for manhood. He directed to remain vigilant, closely monitor, follow the rules of engagement in such a war, save ourselves and move ahead.
He informed that the state of the world today teaches us that a (Atmanirbhar Bharat) “Self-reliant India” is the only lane. In order to accomplish the dream of making the 21st century India’s, the way forward is through ensuring that the country becomes self-reliant. This vision of India – turning crisis into opportunity- is going to prove equally effective for us.
Prime Minister remarked that the definition of self-reliance has undergone a change in the world and clarified that when the country talks about self-reliance, it is different from being self-centered. He said that India’s culture echoes the world as one clan, and progress in India is part of, and also underwrites to, progress in the whole world the pandemic has focused to altered reflection on self-reliant in terms of our everyday life. Our Nations follow this logic in their own claims of self-reliance. This paper discusses the implications in these claims of self-reliance in the context of the nation’s economy.
Keywords:-stimulus ,Self Reliant, Turning Crisis,Economy,
Introduction
At this time when the whole world is suffering from this deadly COVID 19 India plans to convert this crisis into the new opening and build up strength by becoming self-reliant India. The term was coined by the Prime Minister of India, Mr Narendra Modi.
From last year our community is fighting against COVID-19 virus. During this span of time more than 3.05 corer people across the world have been infected with this COVID 19 virus and out of them more than 4.01 Lakh people have died terribly. Crores of people around the world are facing this crisis and want to come out of it by hook or crook. . This crisis is unlikely as well as exceptional for mortal human being. He directed to remain watchful and follow all the instructions in such a way like war condition in which we have to save ourselves, others and move forward. Today (Atmanirbhar Bharat) “Self-reliant India” is the only path to move ahead in order to full fill the dream of making the 21st century more strong .This vision of India – always turning crisis into new opportunity which is going to prove very operational for our India to be self-reliant . As the production of Personal Protective Equipment kits, N-95 masks in India has gone up from zero to 5lakh today, on a daily basis. When the country talks about self-reliance, it is different from being self-centred. Our India’s philosophy considers the world as one family, and progress in India is part of it and contributing in world‘s progress also.
High-points of Self-Reliant India –A pivot
The main goal of self-reliant India is to wrap up this import dependence by concentrating on it while improving the security consent and quality of goods and services to achieve global Market
The Self-Reliance neither signifies chic nor rigid strategies but encompasses the booster doze for the world. The self-reliant pivot emphases on promoting “local” products. By giving much confidence to people
The self-reliant pivot will be carried out in two phases:
Phase 1 consider the sectors like plastic ,electronics, textiles and medical where local manufacturing is very easily possible without any hindrance and for all this exporting process is to be promoted .
Phase 2 consider products like steel ,jewellery and gems etc. in coming year the growth in gems and jewellery largely contributed in development .
The idea of self-reliant India (Atma Nirbhar Bharat ) will make India a manufacturing hub. The vision is only put our Indian economy on the wheel of high growth.
Self reliant India is a realistic poject which main aim to increase the contribution of manufacturing in GDP which increase up to 25% till now
Prime Minister Mr. Narendra Modi when addressing to nation focusing on the pillars of self-reliant India. First pillar is Economy – efforts in building economy which brings in quantum jump rather incremental change.
Second pillar is Infrastructure – must be top class because it creates the identity of India
Third pillar is technical System – system must be updated based on 21st century technology driven arrangements not on past century Fourth pillar is vibrant Demography – which is our strength and source of energy for a self-reliant India
Fifth pillar is Demand – the cycle of demand and supply chain in country economy is the strength should be utilized to full capacity. This pivot of self-reliant India is also anticipated to balance ‘India Initiative’ which intends to encourage manufacturing in India.
Aatma nirbhar Bharat and Economic catalyst
Prime Minister announced the ‘Atmanirbhar Bharat Abhiyan with an economic catalyst package of twenty lakh crores aimed towards achieving the pivot. This package will give a new encouragement to the development journey of the country and also new direction to the Self-reliant India campaign.
The announced economic package is 7% of India’s Gross Domestic Product (GDP) in 2019-2020.
The amount includes packages already announced at the beginning of the lockdown incorporating measures from the RBI and the payouts under the Pradhan Mantri Garib Kalyan Yojana.
This package focuses on liquidity, land and laws. Hon’ble Finance Minister of India announced this Special economic and comprehensive package of rupees twenty crore lakh crore in five portion . The first portion of the Stimulus Package is dedicated to support to MSMEs. The reforms announced in the second portion are aimed at providing help to the poor including the farmers and the refugee labours. The third portion is focused on announcing additional reforms for the farming sector. As part of the fourth portion, the Government declared reforms to provide stimulus to sectors including minerals, defence civil aviation and atomic energy. The fifth and the last portion phases on health, education and certain other modifications including de-criminalisation of the Companies Act, 2013, ease of doing business and public sector undertakings. The announcement made by the Hon’ble Finance Minister in each tranche is briefed here under
1.Portion 1
In first tranche, the Government has taken various actions focussed on getting back to work. Following things were announced to provide relief and credit support related to businesses, especially MSMEs.
Rs 3 lakh crore Extra Working Capital Facility for Businesses, including MSMEs – To offer help to the commercial, additional working capital finance of 20% of the outstanding credit as on February twenty nine 2020, in the form of a Term Loan at a very low rate of interest will be given. This will be available up to 25 crore rupees outstanding and turnover of up to Rs 100 crore whose accounts are standard.
twenty thousand crore rupees Subordinate Debt for Stressed MSMEs – Government will support two lakhs MSMEs with 4,000 Crore rupees to Credit Guarantee Trust for Micro and Small enterprises (CGTMSE).
fifty thousand crores rupees equity infusion through MSME Fund of Funds – Fund of Funds will be set up by the Government with a corpus of Rs 10,000 crore which give funding support for MSMEs.
Definition of MSME will be redrafted by uprising the limit of investment. An additional criteria of turnover also announced. The contradiction between manufacturing and service will be eliminated.
Other Actions for MSME – e-market linkage for MSMEs will be stimulated to act as a extra for trade fairs and exhibitions. MSME receivables from Government and CPSEs will be released in 45 days
General Financial Rules of the Government will be rewritten to disallow global tender investigations in obtaining Goods and Services of value of less than Rs 200 crores
The Employee Provident Fund scheme which is the part of PMGKP under which Government of India contributes 12% of salary each on behalf of both employer and employee to EPF will be extended by another 3 months for salary months of June, July and August 2020. Total benefits accrued is about Rs 2500 crores to employee.
EPF Contribution to be reduced for Employers and Employees for 3 months -Statutory PF contribution of both employer and employee reduced to 10% each from existing 12% each for all establishments covered by EPFO for next 3 months. This will provide liquidity of about Rs.2250 Crore per month.
Government will fire thirty thousand crore rupees for Special Liquidity Scheme, liquidity being provided by RBI. Investment will be made in primary and secondary market transactions.
Power Finance Corporation and Rural Electrification Corporation will infuse liquidity in the DISCOMS to the extent of ninety crores rupees in two equal instalments.
All central agencies like Railways, Ministry of Road Transport and Highways will give extension of up to 6 months for completion of prescribed obligations.
The pending income tax refunds to charitable trusts and non-corporate businesses and professions including proprietorship, partnership shall be issued immediately.
Tax related measures
Reduction in Rates of ‘Tax Deduction at Source’ and ‘Tax Collected at Source” – The TDS rates for all non-salaried payment to residents, and tax collected at source rate will be reduced by 25 percent of the specified rates for the remaining period of FY 20- 21
The date for payment without any extra amount under the “Vivad Se Vishwas” scheme will be extended to 31 December, 2020.
Portion 2 – In second tranche, the Government also taken several actions to ameliorate the hardships faced specifically by migrant labours, street vendors, migrant urban poor, small businessman, self-employed people, small farmers.
Free food grains supply for two months.
Scheme for Affordable Rental Housing Complexes for Migratory Worker. Rupee five thousand crore Credit facility for Street Vendors.
Management & Planning Authority (CAMPA) funds
Thirty thousand crore rupees Additional Emergency Working Capital for farmers through NABARD Two lakh crore rupees credit boost to 2.5 crore farmers under Kisan Credit Card Scheme
3.Portion 3 to provide long-term and sustained impact on lives of farmers, fishermen, food processing micro enterprises, and the government announced the following measures:
Financing facility of rupee1, 00,000 crore will be provided for financing Agriculture Infrastructure Projects by aggregation points
A Scheme of ten thousand crore rupees to promote the idea of Hon’ble Prime Minister ‘Vocal for Local with Global outreach’ will be launched to help 2 lakh MFEs who need technical upgradation to attain FSSAI food standards, build brands and marketing.
o – The Government will introduced the PMMSY for integrated, sustainable, comprehensive development of aquatic and local fisheries. Eleven thousand corer rupees for activities in Marine, Inland fisheries and Aquaculture and nine thousand crore rupees for Structure – Fishing Harbours, Cold chain, Markets etc.
An Animal Farming Infrastructure Development Fund of fifteen thousand crore will be set up, with goal to care private investment in Dairy Processing, value addition and cattle feed infrastructure.
The National Medicinal Plants Board has supported 2.25 lakh hectare area under cultivation of medicinal plants. This will lead to rupee five thousand crore income generation for farmers.
Government will implement a scheme for Infrastructure development related to Integrated Beekeeping Development Centres, Collection, Marketing and Storage Centres, Post
Harvest & value Addition facilities etc.
From ‘TOP’ to TOTAL- “Operation Greens” run by Ministry of Food Processing Industries. The Scheme would provide 50% subsidy on transportation from surplus to deficient markets, 50% subsidy on storage, including cold storages and will be launched as pilot for the next 6 months and will be extended and expanded.
Apart from the above measures, the government has proclaimed alterations to Essential Commodities Act, 1955 to enable better price realisation for farmers, Agriculture Marketing Reforms to provide marketing choices to farmers and agriculture Produce Pricing and Quality Assurance
4.Portion 4 The following structural reforms across Eight Sectors i.e. Coal, Mineral, Defence, Civil Aviation, Power, Social, Space and Energy Sectors paving way for Aatma Nirbhar Bharat were announced as under: Coal Sector
The Government announces competition, transparency and private sector sharing in the Coal Sector through various actions. Mining will be done on revenue sharing mechanism instead of the regime of fixed rupee/tonne. Mineral Sector – To boost growth, employment and bring state-of-the-art technology especially in exploration through enhancing private investments and policy reforms in Mineral sector.
Power Sector – Tariff Policy Reforms related to User Rights, Promoting Industry, sustainability of sector will be released and Power Departments/ Utilities in Union Territories will be privatized.
Social Infrastructure
The Government will enhance the quantum of Viability Gap Funding (VGF) upto 30% each of Total Project Cost as VGF by the Centre and State/Statutory Bodies. For other sectors, VGF existing support of 20 % each from Government of India and States/Statutory Bodies shall continue.
Space Sector
Predictable policy and regulatory environment to private players will be provided. Private sector will be allowed to use ISRO facilities and other relevant assets to improve their capacities.
5.Portion 5 – Following measures towards Government Reforms and Enablers in seven measures such as providing employment, support to businesses, Ease of Doing Business, and State Governments as well sectors such as Education and Health were announced:
Public Spending on Health will be increased by spending in grass root health organizations and ramping up Health Centers in rural and metropolitan areas. Setting up of Communicable Diseases Hospital Blocks in all districts and strengthening of lab network and scrutiny by Integrated Public Health Labs in all districts & block level Labs & Public Health Unit to manage pandemics.
Conclusion
Self Reliant India as an idea deserves to be understood, examined, understood and adopted with positive mentality. In post covid epoch, the atama nirbharata in Indian Economy, is necessary for the existence and for achieving excellence by every Indian. As a citizen of this country, the responsibility lies on us to play the role as customer, creator, supplier and broker. We need to have positive approach by accepting ‘Sab ka saath , Sab ka vikas .
To make this a successful work, we need to upsurge domestic saving rate which is necessary for investments in order to provide the growth in the various segments of the economy. It is believed that the domestic saving rate is capable of firming the economy in-terms of all indicators of the performance of the economy including rate of investment, capital formation GDP and exports
References
. https://pib.gov.in/PressReleasePage.aspx?PRID=1623601
. https://pib.gov.in/PressReleasePage.aspx?PRID=1623862
. https://pib.gov.in/PressReleasePage.aspx?PRID=1624661
. https://pib.gov.in/PressReleasePage.aspx?PRID=1624661 A fulcrum to growth of Indian economy