Atmanirbhar Bharat Abhiyan Features, Objectives and Benefits

Atmanirbhar Bharat Abhiyan, or “Self-Reliant India Mission,” is an economic stimulus package launched by the Indian Government in May 2020 to tackle the COVID-19 crisis. The campaign aims to strengthen India’s economy, reduce import dependence, and promote domestic manufacturing, services, and innovation.

The initiative was announced in four tranches by Finance Minister Nirmala Sitharaman, totaling ₹20 lakh crore, equivalent to nearly 10% of India’s GDP. The Abhiyan also integrates the Pradhan Mantri Garib Kalyan Yojana (PMGKY), aimed at providing relief to the economically vulnerable sections of society.

Why was Atmanirbhar Bharat Abhiyan launched?

The COVID-19 pandemic disrupted the Indian economy, affecting millions of jobs, businesses, and livelihoods. To mitigate the impact, the government introduced Atmanirbhar Bharat Abhiyan with multiple objectives:

  • Strengthen local and regional manufacturers and service providers.
  • Improve the standard of living by addressing trade deficits and the balance of payments.
  • Achieve self-reliance for the country and its citizens in all aspects.
  • Transform India into a global supply chain hub.
  • Revive all sectors of the economy through fiscal stimulus.

It emphasized reforms in land, labor, liquidity, and laws while providing economic support to farmers, migrants, MSMEs, and industries.

What are the Five Pillars of Atmanirbhar Bharat Abhiyan?

Prime Minister Narendra Modi outlined five foundational pillars for a self-reliant India:

  1. Economy: Focus on making a quantum leap rather than incremental adjustments to turn challenges into opportunities.
  2. Infrastructure: Modern infrastructure represents India’s identity and contributes to economic growth.
  3. Systems: Implementation of 21st-century technology-driven systems rather than outdated frameworks.
  4. Demand: Strengthening the demand and supply chains to stimulate economic activity.
  5. Vibrant Demography: Leveraging the potential of India’s young population for growth and development.

These pillars provide a structured approach to ensuring that self-reliance is sustainable and inclusive.

5 Pillars of Atmanirbhar Bharat

What are the Main Objectives of Atmanirbhar Bharat Abhiyan?

The primary objectives of the mission include:

  • Job Creation: Increased employment opportunities in manufacturing, agriculture, and public schemes like MGNREGA.
  • Boost Domestic Manufacturing: Enhancing the share of domestic products in the Gross Value Added (GVA).
  • Reduce Import Dependency: Focus on import substitution and improving exports.
  • Promote Indigenous Products: Encourage citizens to buy locally manufactured goods.
  • Reform Outdated Policies: Simplifying laws, rational taxation, robust financial systems, and supply chain reforms.
  • Support to Vulnerable Sections: Economic support for MSMEs, farmers, migrants, and daily wage laborers.

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How is Atmanirbhar Bharat Abhiyan Structured?

The economic package is implemented in four tranches, each addressing specific sectors:

Tranche 1: Support to Businesses and Financial Sector

SectorMeasures
Employees / Taxpayers– Extended income tax return deadlines (FY 2019-20)
– TDS & TCS reduced by 25%
– EPF support extended for low-income workers
MSMEs– ₹3 lakh crore emergency credit line
– ₹20,000 crore subordinate debt
– ₹50,000 crore equity infusion
– Expansion of MSME definition
NBFCs & HFCs– ₹30,000 crore special liquidity scheme
– Partial credit guarantee scheme extension
Discoms– ₹90,000 crore liquidity infusion
Real Estate– Extension of registration and project completion deadlines by 6 months

Tranche 2: Support for Migrants, Poor, and Farmers

Sector Measures
Migrants & Poor– ₹3,500 crore free food grains for migrant workers without ration cards
Farmers & Street Vendors– ₹5,000 crore credit for street vendors
– ₹2 lakh crore concessional credit for farmers
– NABARD refinance support of ₹30,000 crore
Housing– Affordable rental housing complexes under PMAY-ARHC
– Extension of credit-linked subsidy scheme for middle-income groups
One Nation One Ration Card– Portability of ration cards across states
MGNREGA– Enrolment of returning migrant workers

Tranche 3: Agriculture Reforms

SectorMeasures
Inter-state Trade– Facilitation of barrier-free trading of agricultural commodities
Contract Farming– Legal framework to ensure assured pricing and private sector participation
Deregulation of Produce– Six agricultural products deregulated: cereals, pulses, oilseeds, onions, potatoes, edible oils
Agriculture Infrastructure– ₹1.5 lakh crore for farm-gate infrastructure (cold storage, logistics, post-harvest facilities)

Tranche 4: Strategic Sectors and Privatization

SectorMeasures
Defence– Import bans on select items
– FDI limit increased to 74%
– Corporatization of Ordnance Factory Boards
Minerals– Commercial mining
– Private participation in coal blocks
– Removal of government monopoly
Space– Encouraging private sector participation via IN-SPACe
Aviation– Auction of airports
– Easing airspace restrictions
– Rationalizing MRO tax structure
Power & Atomic– Privatization of power distribution in UTs
– Research reactors in PPP mode for medical isotopes production

What are the Potential Benefits of Atmanirbhar Bharat Abhiyan?

The benefits of the Atmanirbhar Bharat Abhiyan are as follows:

  1. Job Creation: Employment through MGNREGA, MSMEs, and manufacturing initiatives.
  2. Credit Facilities: Easy access to loans for MSMEs, farmers, and small businesses.
  3. Liquidity Infusion: Ensures financial stability for businesses and banks.
  4. Private Sector Participation: Encourages domestic and foreign investment in strategic sectors.
  5. Health Infrastructure: Funding for COVID-19 vaccine development and public health initiatives.
  6. Agricultural Boost: Infrastructure and financial support for farmers, fishers, and livestock farmers.
  7. Education and Skill Development: Technology-driven learning platforms and skill enhancement programs.

What are the Challenges and Concerns of Atmanirbhar Bharat Abhiyan?

The challenges faced while implementing Atmanirbhar Bharat Abhiyan are as follows:

  • Impact on International Trade: Import substitution, increased tariffs, and non-tariff barriers may reduce trade and foreign investment.
  • Data Localisation Issues: Storing data within the country may limit global supply chain integration.
  • Defence Sector Constraints: Import embargo on 101 items could affect foreign collaboration.
  • Space Sector Clarity: Regulatory and procedural clarity needed for private sector participation.
  • Policy Enforcement: Intellectual property, pharmaceutical regulations, and governance challenges.

Why is Atmanirbhar Bharat Abhiyan Relevant Today?

Recent global developments emphasize the importance of self-reliance:

  • China Border Tensions: Galwan Valley clash highlights the need for indigenous defense capabilities.
  • Afghanistan Crisis (2021): Global political instability affecting India’s strategic interests.
  • Russia-Ukraine Conflict: Emphasizes the need for independent economic and defense strategies.

These developments show that Atmanirbhar Bharat Abhiyan is crucial not only for economic growth but also for strategic autonomy and security preparedness.

Key Takeaways

AspectKey Points
LaunchMay 2020, ₹20 lakh crore package
ObjectivesSelf-reliance, job creation, boost domestic manufacturing, reduce imports, strengthen economy
Five PillarsEconomy, Infrastructure, Systems, Demand, Vibrant Demography
Tranches1. MSMEs & financial support
2. Migrants, farmers, housing
3. Agriculture & trade reforms
4. Strategic sectors & privatization
BenefitsJob creation, credit facilities, liquidity infusion, private sector participation, health and agricultural infrastructure
ChallengesTrade restrictions, data localization, defense imports, regulatory clarity, policy enforcement
Steps ForwardStrategic planning, innovation, free trade, digital integration, sustainable policies, holistic reforms

Questions Based on Atmanirbhar Bharat Abhiyan

Q1. What is the total financial outlay of Atmanirbhar Bharat Abhiyan?
(a) ₹10 lakh crore
(b) ₹15 lakh crore
(c) ₹20 lakh crore
(d) ₹25 lakh crore
(e) ₹30 lakh crore

Q2. Which of the following is NOT one of the five pillars of Atmanirbhar Bharat?
(a) Economy
(b) Infrastructure
(c) Systems
(d) Democracy
(e) Demand

Q3. Which tranche primarily focused on migrant workers and farmers?
(a) Tranche 1
(b) Tranche 2
(c) Tranche 3
(d) Tranche 4
(e) None of the above

Q4. What is the primary aim of Atmanirbhar Bharat?
(a) Isolationist economy
(b) Self-reliance and economic revival
(c) Promote only foreign trade
(d) Privatization only
(e) Reduce employment

Q5. Which sector received ₹1.5 lakh crore for infrastructure under Tranche 3?
(a) Defense
(b) Agriculture
(c) Aviation
(d) Space
(e) Power

Q6. What does PMGKY stand for?
(a) Pradhan Mantri Garib Kalyan Yojana
(b) Pradhan Mantri Gram Kalyan Yojana
(c) Pradhan Mantri Ghar Kalyan Yojana
(d) Pradhan Mantri Gramin Kalyan Yojana
(e) None of the above

Q7. Which agency provides a level playing field for private companies in India’s space sector?
(a) ISRO
(b) IN-SPACe
(c) DRDO
(d) NABARD
(e) BHEL

Q8. What is the main focus of Atmanirbhar Bharat in agriculture?
(a) Import agricultural products
(b) Supply chain reforms and farm-gate infrastructure
(c) Reduce farmer credit
(d) Privatize irrigation
(e) Export subsidies

Q9. Which of these is a concern raised regarding Atmanirbhar Bharat?
(a) Promoting local products
(b) Curtailment of international trade and investment
(c) Strengthening MSMEs
(d) Boosting health infrastructure
(e) Providing jobs

Q10. Which recent international event highlighted the relevance of Atmanirbhar Bharat?
(a) Galwan Valley clash
(b) US elections
(c) Tokyo Olympics
(d) Climate Summit
(e) G20 Summit

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Pradhan Mantri Dhan Krishi YojanaStand Up India Scheme
All About GST 2.0National Green Credit Programme

Answer Key:

Question NumberAnswerQuestion NumberAnswer
Q1CQ6A
Q2DQ7B
Q3BQ8B
Q4BQ9B
Q5BQ10A

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