Mansi Manek

FY BSC ECONOMICS
ROLL NO: 31013121010

AATMANIRBHAR BHARAT
PACKAGE

INTRODUCTION
Aatmanirbar Bharat means ‘self-reliant India’. The Atmanirbar
package was announced by Prime Minister Shri Narendra Modi on May
12, 2020. This is a special economic and comprehensive package of Rs.
20 lakh crores, which is equal to 10% of India’s GDP. This was done in
order to ght the COVID-19 Pandemic in India. He outlined the 5 pillars
of Aatma Nirbar Bharat packages as Economy, Infrastructure, System ,
Vibrant Demography, and Demand.

Some key points

1. state governments now have a rise in their borrowing limits. The
increase is from 3% to 5% of the gross state domestic product for the
annual year 2020-21. In this way, states have extra resources to spend
on health care, employment, and infrastructure
2. One Nation One Ration card: This universalization of ration card
will enable migrant workers and their families can access public
distribution bene ts from any Fair Price Shop in the country. They can
get the food grains at subsidized rates.
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 3. Collateral Free Business loan: All businesses such as MSMEs,

agriculture, and allied sectors can get collateral-free automatic loans. It
gives a nancial cushion to several businesses and encourages
entrepreneurs to produce maximum goods and services within the
country.

AATMANIRBAR PACKAGE - BOON

As the world grapples with ideas to address the adverse impact of
COVID-19 pandemic, Prime Minister Narendra Modi came out with a
catchphrase - "Atmanirbhar Bharat", and an economic package of 20
Lakh Crore Rupees. The special economic package focused on land, labor,
liquidity and laws and seeks to bene t all sectors of the economy and all
sections of the people, including labourers, farmers, honest tax payers,
MSMEs ( Ministry of Micro, Small & Medium Enterprises) and cottage
industries. This special economic package was announced to make India
independent against the tough global supply chain competition and help
empower the labourers, poor and migrants who had been severely affected
by the COVID-19 pandemic.
Some points which support the topic :
• It will increase India’s balance of payment will improve as our
import bill decreases. Our export bill also increase as we will start
exporting the nished products
• Supply chain will improve which will increase the GDP and GDP
per capita
• We will start getting products at cheaper rate as indigenous
industries will start making them
• There will be increase in employment
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 AATMANIRBAR PACKAGE - BAN

So the question now is will the aatmanibar package boost the Indian
economy and India towards self-reliant?
Some points and facts supporting the topic
• ‘The poor have suffered a lot, this will increase their strength.’ But
their sufferings peaked with the lockdown, which his government
imposed.
• Out of the Rs 21 lakh crore package, Rs 9.73 lakh crore has been
accounted for by the potential liquidity injection into the banking and
nancial system through various measures of the RBI (Rs 8 lakh crore)
and otherwise, and Rs 6.25 lakh crore for the expected collateral free or
partially guaranteed easy loans (even with lower credit ratings) to the
MSMEs, farmers and so on. he rest of the package is about off-budget
fund building of Rs 1.7 lakh crore, revenue foregone of Rs 58,000 crore,
Rs 40,000 crore extra allocation for the Mahatma Gandhi National
Rural Employment Guarantee Scheme (MGNREGS), and Rs 1.7 lakh
crore of PM Garib Kalyan Yojana for the mere survival of poor people
in the country.
Therefore, more than three-fourth of the ABA package is about
potential liquidity infusion and expected increase in the credit offtake at
aggregate level.

• The aggregate demand for credit would increase only if the

aggregate investment demand rises, which in turn, depends on the
expected pro tability of the investment projects. The pro tability of the
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 businesses/investments is subject to the demand for the products in the
market.
• Due to less competition in the market from foreign products quality
of products may decline.

CONCLUSION
A package can never boost the economy, the proper implementation
can.