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ATMANIRBHAR BHARAT ABHIYAN: AN ANALYTICAL REVIEW

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Abstract

Atmanirbhar Bharat Abhiyan is the new version of 'Make in India' which was announced by Hon'ble Prime Minister on 12 th May 2020 with new vision. The detailed announcements were madein five days relief packageby the Finance Minister Nirmala Sitaaraman to mitigate the negative effects of the COVID-19 pandemic. She clarified that it doesn't aim to adopt protectionism against other countries. Those sectors which requires FDI and foreign technology are always welcome. In the critical situation of pandemic when international movements of goods and services prohibited, India showed the independent skill of manufacturing PPE by growth of this sector from zero to 1,50,000 pieces a day by the beginning of May, indicatingthe capacity of Self-reliance.The paper focuses on those sectors and areas which have potential to achieve self-reliance in the future. It tries to analyse the limitations and bring out the various suggestions to utilize the existing capacity for becoming a global supplier. Objectives: 1. To find out the capacity of some sectors to achieve self-reliance 2. To find out the problems on the way to Atmanirbhar Bharat. 3. To suggest remedies for existing loopholes.
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ATMANIRBHAR BHARAT ABHIYAN: AN ANALYTICAL REVIEW
Dr. Smita Dubey
Dept. of Business Economics, SSMSs Degree Night College, Bhiwandi
Dr. Harish K. Dubey
Dept. of Physics, B. K. Birla College (Autonomous), Kalyan
Abstract:
Atmanirbhar Bharat Abhiyan is the new version of Make in India which was announced by
Honble Prime Minister on 12th May 2020 with new vision. The detailed announcements
were madein five days relief packageby the Finance Minister Nirmala Sitaaraman to mitigate
the negative effects of the COVID-19 pandemic. She clarified that it doesnt aim to adopt
protectionism against other countries. Those sectors which requires FDI and foreign
technology are always welcome. In the critical situation of pandemic when international
movements of goods and services prohibited, India showed the independent skill of
manufacturing PPE by growth of this sector from zero to 1,50,000 pieces a day by the
beginning of May, indicatingthe capacity of Self-reliance.The paper focuses on those sectors
and areas which have potential to achieve self-reliance in the future. It tries to analyse the
limitations and bring out the various suggestions to utilize the existing capacity for becoming
a global supplier.
Keywords: Covid-19, Atmanirbhar Bharat Abhiyan,Organic Farming, APIs.
Objectives:
1. To find out the capacity of some sectors to achieve self-reliance
2. To find out the problems on the way to Atmanirbhar Bharat.
3. To suggest remedies for existing loopholes.
1. Introduction:
Due to COVID-19 pandemic India experienced declining international trade which gave an
idea to achieve self-reliance in some sectors and to become a global supplier. In 1991 fiscal
crisis, BOP crisis, hyperinflation led to launch new policy called LPG i.e.Liberalisation,
Privatisation and Globalisation. Similarly since March, 2020 whatever situation was faced by
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world as well as India due to COVID-19 gave a new concept to emerge that is self-reliant
India. With the impactof COVID-19, many countries are adopting protectionist policies.India
is a developing country; therefore, it is very difficult to adopt protectionism. But in some
sectors in which we have potential to achieve self-reliance, we can impose trade barriers to
protect and develop domestic industries. As mentioned by government, 12 sectors including
auto components, textiles, industrial machinery and furniture, food processing, organic
farming, iron, aluminium and copper, agro - chemicals, electronics, leather and shoes. Masks,
sanitizers and ventilators have been identified to give more focus to become a global supplier.
It has been seen that these products have comparative advantage asthey can be produced
domestically at low cost. India has huge potential in Agro-chemicals, Pharma & APIs(active
pharma ingredients) too.
Foreign secretary Shringala said that The idea behind self-reliance or Atmanirbhar is not to
become isolated country but on the contrary it is to ensure that India can emerge as the global
nerve centre of the complex modern multinational supply chains. Pandemic situation gave
India a new opportunity to become demonstrated and leading country in front of the world by
localising their product and by improving supply chains to meet internal demands. Foreign
Secretary while addressing the Federation of Indian Chambers of Commerce and Industry in
New Delhi said that India now have opportunity to diversify global supply chains. In these
changing times with an integration of supply-demand basics with highly diversified value
chains, emerging technologies and artificial intelligence, present us with an important
opportunity for other country and mitigate the supply chain disruptions with the increased use
of innovative digital platforms and applications.
2. Research Methodology:
The present study is based on secondary data collected from different
journals,magazines,various books and websites which are clearly mentioned in the
bibliography.
3. An Extension of Make in India:
There is no previous literature on this topic as it is recently introduced by Prime Minister of
India to make India a self-reliant nation and make it a leading global supplier. There is some
previous literature on Make in India which is on the same line. A global perspective by
According to Dr. (Smt.) RajeshwariShettar, SM Sheshgiri (2017), Make in India program
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shows drastic change in many sectors like aviation, automobiles, biotechnology.Many
researchers tried to represent that Foreign Direct Investment and continuous increase in
investment in Research and Development will help in generating employment. PuneetAnejain
his paper focussed that Make in India campaign is an imaginative idea of our Prime
Minister to convert it into reality and to take some share from China in global manufacturing
we have to improve our infrastructure,ease of doing business, reform tax and labour laws.
Dr.RichaShrivastava in her paper explained that India has the capability to push its
manufacturing. Government had taken several steps to encourage domestic as well as foreign
investors by removing the business barriers and increase the purchasing power of average
person helps in boosting demand and generating employment.
4. Scope to boycott China:
The trade between India and China is falling almost 12.4% year on year and to USD 12
billion in the first two months.The declining trade was largely due to the slowdown of the
economies of the two countries. As a result of lockdown Indian pharma industry is
concerned as India is a big importer of the main raw materials APIs (Active pharmaceutical
ingredients) from China.Chinese investments in Indian start-ups-Zomato, Swiggy, Ola, Big
basket, Udaan, Policy Bazaar etc. In 2018, Alibaba invested $216million in online grocer
BigBasket, $21million in food delivery app Zomato. Tencent has $400million on Ola and
huge amount invested in Paytm and Byzus, an education start-up. Two-third of Indian start -
ups valued at $1 billion according to the data from think - tank Gateway house. It is not much
harmful to the country if the percentage of Chinese investment is lower. But if the percentage
goes upto 40% like in case of paytm then we should not use it. Also, it is dangerous if the
percentage of Chinese share becomes more than 50% as with this theChinese companies get
decision making power. NitiAayog member ShriV.K. Saraswat had said that UP firms in
Kanpur should avoid importing raw materials for manufacturing bullet proof jackets due to
consistent supply of low quality raw materials and switch to American and European
countries for importing raw materials.Indias leading multinational engineering, construction,
technology and financial services conglomerate L&T (Larsen & Toubro) committed to
reduce dependency on Chinese products.L&T CEO, ShriSN Subrahmanyam said that they
firmly stand with the policy of Make in India to develop local manufacturing and construct
ecosystem in producing efficient and cost effective substitutes for the global
markets.Company plays a significant role in producing key engineering and technological
products and construct almost all nuclear reactors for power generation over eight decades.
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India should negotiate with Australia and European Union on trade related aspect to
encourage trade with other rather than China.
5. Sectors having potential to achieve self-reliance in future
5.1 Textile Industry: Indian textile industry is a second largest industry after agriculture in
terms of economic contribution and employment generation. Textile and Apparel sector
contributes 14% to industrial production, 4% to Indias GDP, and constitutes 15% of the
countrys export earnings.India imports accessories and raw materials from China for
textile industry. Global suppliers are looking for alternatives for textile. China is the
largest exporter and leading importer of all products finished as well as raw materials.
Indian Textile industry is second largest producer of raw cotton, cotton yarn, cellulosic
fibre yarn, in silk production. It is also largest producer of jute and fourth producer of
synthetic fibre. India exports 25million kg cotton yarn per month to China. We have to
analyse both positive and negative side i.e.threats & opportunities. Textile production cost
increases by 3 to 5%. Closure of units in China has led to demand drop for textile. India
will be preferred market for sourcing of apparels. Garment industry also imported
synthetic fibre from the China. Therefore, garment importers have to switch to other
countries. This is the opportunity for the domestic manufacturer to supply the fabric to
garment exporter. Chinas share in the export market is around 40%. Not only India, but
other countries also like Vietnam, Bangladesh is importing from China. Therefore in case
if they are not getting from China these opportunities may get diverted to India. As a
recent report by India Brand Equity Foundation, Indias overall textile exports during FY
2017-18 stood at USD 39.2 billion and is expected to increase to USD 82.00 bn by
2021(up to Jan 19). Many textile industries started manufacturing PPE kits and Masks.
India has become the second largest manufacturer of PPE kit worth Rs 7000cr. 600
companies manufacturing PPE kit across the country. Polyester sportswear companies are
manufacturing 7-8 thousand PPE kit per day.Fabric for PPE kit comes from Nasik,
Zindal, Himachal, Gujarat,South India etc. Thus, India is a great manufacturing nation but
due to lack of quality and timely delivery of goods we will lose the opportunities in next
two-three months until we do not improve.
5.2 Organic Farming: The World Organic Agriculture report of 2018 revealsIndia is third
amongst the organic food producers in the world. Indian organic food market is approx.
$1.5 billion out of $ 250 billion global organic food market. North east states of India
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have developedas a hub of organic farming with their efforts.Organic farming can
become a huge movement in the North-East and dominate the global market.Sikkim has
taken lead to convert their entire produce in organic cultivation. It is estimated that
Indian organic agriculture is growing at 25% a year. Enabavi,Telanganas first leading
organic or chemical free village is the best example of organic farming and shows huge
potential in Indian farming through which farmers can produce more than subsistence
level. A farmer from this village said that one farmers effort can do nothing; every
farmer has to do something to improve mother earths health which gets spoiled due to
excessive use of fertilizers.That is why everyone in the Enabavi village adopts natural
farming. Earlier there were large number of farmers who committed suicides due to
uncertain weather but after adopting natural farming their life has been changed.Now,
they have become debt-free and every farmer have bicycle and tractor and their life has
become easy.
5.3Automobile Industry: According to the Foreign Secretary, Indian automobile industry
particularly low cost automobiles including 2 and 3 wheelers will have an augmented
market in developing countries. India is already the fourth largest auto market in the
world. It contributes 7% of GDP, 40% of Indias manufacturing and engaging 45 million
Indian directly or indirectly. The Make in India initiative has played an important role
in uplifting countrys position. In the past 3-4 years India improved on nine out of ten
parameters for ease of doing business. Indias automotive industry transferred it from
traditional roles to digital environment to increase connectivity with its customers.India
has been known for frugal engineering and for low cost managerial talent. Many global
companies named it Jugaad to develop products at low cost, but have enough value to
attract demand. To make our country self - reliant in automobile industry our
manufacturers should not wait for outsiders because we are not only vehicle makers but
also component makers,technology and service providers. Workers are asset for any
industry so it will be better to make an Auto Industry workers benefit Fund and do more
investments to train them which can enable them to get job. There is need of significant
investment in research and development that while recognising Jugaad will set a clear
protocol that fosters innovation and solution. It is required to build a PAN - India supply
chain network for displaced workers and need to work out on low interest loans.
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5.4 Pharmaceutical Industry: In 1969 Indian pharmaceutical industry had a 5% share of the
global market. By 2020, it is the reverse,now Indian pharma is having an almost 85%
share of the global market.Over the last more than 50 years, India has been successful in
meeting the domestic market and has a potential to play the role of pharmacy of the
world. According to Pharmexil, India exported pharma products worth of $200.02
million in financial year 2018, with a recorded growth of 37.52%.Excess dependency on
China for APIs need to be reduced because continuous increase in import of raw
materials from China shows alarming situation for Indian Pharma industry. In 2015,
Dr.V.K.Subburaj, Secretary, Department of Pharmaceuticals highlighted to achieve self-
sufficiency in APIs.In 2018, Chemical and Fertilizer Ministry along with other ministries
joined hands to increase the production of APIs domestically to reduce dependency on
China. To grasp the real potential of the industry and to speed up the available
opportunities, Indian pharma industry is producing as per market demand and spending
more on R&D. Existing policies requires to be more friendly which enable local
industries to manufacture the core of the industry. Many of the top Pharma companies
already set up their plants in Vishakhapatnam for manufacturing APIs to access the sea
routes and airports and make it more focussed Centre of Excellence for Pharma sector.
The Indian Pharma industry has been growing steadily from the past few years as seen in
the following table:
Steady Trend Value Growth in %
2014
2015
2016
2017
2018
2019
Indian Pharma Market
8
15
11
8
7
9
National List of Essential Medicines (NLEM)
-9
10
5
-6
3
6
Non NLEM
11
16
12
10
7
10
Source: Value Growth of Indian Pharmaceutical Market (IPM) MAT July Ref (PwC API Paper)
6. MGNREGA:
Mahatma Gandhi believed that a self-reliant India would not be possible without self-reliant
villages.The MGNREGA is also one of the most important Rural Employment Programme
which provides opportunities to villagers to become self-reliant.Government has allocated an
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additional fund of Rs. 40,000 crore for the MGNREGA under Atmanirbhar Bharat Abhyan.
In Madhya Pradesh farm bunds under MGNREGA had helped massive increase in
agricultural productivity. It has been observed that this scheme led to the 190% increase in
the income of the beneficiaries in Jharkhand. Recently, there has been a focus on the
construction of assets on private land. These include fruit orchards, farm bunds, farm ponds
and well for drinking and irrigation.This is the time for rural population including the migrant
workers who have returned to be engaged in such activities as the creation of small check
dams and gully plugging and many become enable to cultivate three crops instead of single
crop annually. Government increased the allocation of funds for MGNREGA but it is not
sufficient because in poor states due to corruption these funds are not properly allocated so it
is needed to go vocal for workers to implement it efficiently in local areas.
7. Conclusion:
Atmanirbhar Bharat Abhiyan is a long-term concept. In short-term it is very difficult to
achieve because since 1991 all economies are integrated under LPG policy. From the above
study it is concluded that Indian Economy have huge potential to achieve self-reliance but it
requires proper implementation of laws made by government and proper allocation of funds
allotted by the government. Not only in urban, but rural sector also have great capacity to
develop if proper policies are made and implemented.Government should give all the
facilities to develop those sectors which have potential to take innovative steps.This is not
only governments responsibility but also consumers responsibility to consume domestically
produced goods because demand is the main determinant to develop any sector. India is not
only capable of producing basic products but also have the capacity to produce highly
technical products.
8. Recommendations:
The objectives of the Abhiyan could be fulfilled by adopting some measures.As government
allotted huge amount for the development of many sectors and schemes but there is need of
the proper allocation of the funds generated and it should reach the actual hands. The poor
population affects severely by natural calamities and pandemic. Therefore, country should
be prepared for facing natural and economic challenges. Success of any idea and policy
depends on good governance and appropriate mechanism for implementation of that
policy.To become self-reliant and global supplier it is necessary to increase quantity as well
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as quality of the commodity, so that we can deploy the benefit from the opportunity diverted
from China. For the successful implementation of the schemes mentioned in Abhiyan, it is
must to recognize the actual potential of various sectors existing in urban and rural India and
provide them sufficient resource.
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1. Dr. (Smt.) Rajeshwari M. Shettar, Journal of Research in Business and
Management,Volume 5 ~ Issue 2(2017) pp: 01-06, ISSN(Online) : 2347-3002
2. Rishabh Bhatia and SarthaleAgrawalInternational Journal of Applied Research, Make
in India: A quantitative approach,ISSN: 2394-7500
3. PuneetAneja, Make in India: New Paradigm for Socio- Economic Growth in India
Indian Journal of Research.Paripex, Vol.5, Issue: 4, ISSN-2250-1991, Vol.5, Issue.4,
ISSN-2250 1991
4. Dr.RichaShrivastava, Hyderabad, Telangana India Impact of Make in India in Indian
EconomyInternational Journal of Trend in Scientific Research and Development (
IJTSRD) Vol:3, Issue:4,May-Jun 2019,ISSN 2456- 6470
5. https://www.mckinsey.com Article. July 18,2018, The Future of Mobility in Indias
Passenger Vehicle Market
6. livemint.com/news/India/self-reliant-India-can-be-global-nerve
7. http.//www.thehindubusinessline.com, Arvind Sahay, 6th May 2020
8. https://www.expresspharma.in/uncategorized/making-India,UshaSharma,
9. www.financial express.com, PTI May 21, 2000
10. https://m.economic times.com,auto.economic times.indiatimes.com,
May 21, 2020
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Background It’s been over a year now and Covid-19 is still among us and most of the countries are still in fight against Covid-19. Lockdown was the only possible solution but the impact of lockdowns on economies was devastated. Atmanirbhar Bharat (Self-Reliant India) a Covid-19 pandemic economic package of twenty lakh crore rupees was announced by Indian central government on the 12th of May, 2020. The package was released to make the country independent and to primarily empower the poor, labourers, and migrants who were adversely affected by Covid-19. Research Methodology The research paper is of qualitative type and the research methodology has two parts- in the first, the literature has been reviewed regarding the impact of Covid-19 on various sectors globally and in the second part- extracted tweets has been analysed using NVivo and the main parameters- themes, sentiment, word map and word cloud are noted down. Findings The paper extracted various themes under the Atmanirbhar Bharat and the top five themes are related to defence and products. Majority of the tweets are on the positive side as shown by the sentiment analysis. The majority of tweets are from Asia as shown by the word map. Conclusion Lack of beds in hospitals, lack of oxygen supply, and lack of basic facilities for Covid-19 patients have debunk the health system. Though the government made the announcement related to the Atmanirbharbharat very easily, it is going to be very difficult to make it accessible for the common man.
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Dr. (Smt.) Rajeshwari M. Shettar, Journal of Research in Business and Management,Volume 5 ~ Issue 2(2017) pp: 01-06, ISSN(Online) : 2347-3002