JAIN UNIVERSITY

CMS BUSINESS SCHOOL

SUBJECT – IEPR
SECTION-LSCM-2
CASE STUDY- 7
TEAM NO- 7

SUMMARY
In the year 2020, Major cities around the world were placed under lockdown as a result of the unexpected
innovative COVID outbreak, which caused complete halt in economic activities for a few months and
resulted in an economic recession in global markets. The cyclical flow of money in numerous economies
has been disrupted by the pandemic. India, as one of the largest economies of world, also introduced and
announced various fiscal and monetary measures to combat the global slowdown. In that, one of the
effective measures was “Atmanirbhar Bharat Abhiyaan” introduced by the Prime Minister of India
Narendra Modi , which is stimulus package that contains 20 billion rupees (10% of India's GDP). The
main objective of the “Atmanirbhar Bharat Abhiyaan” is to make India self-reliant by strengthening the
economic system of the country and to give a new direction to the development journey of the country
and by reducing our reliance on foreign imports by increasing our capacity to produce most items locally.
However, in order to achieve this result, one must focus on improving the 'Ease of Doing Business in
India and this is essential to realize this vision of Atmanirbhar Bharat.

PROBLEMS AND SOLUTION

Aatma Nirbhar, also known as self-reliant India, was an economic campaign launched by the Indian
government in 2020 to promote self-sufficiency and reduce the country's dependence on imports. The
campaign was aimed at boosting local businesses, creating jobs, and improving the overall economic
growth of India.

However, despite its noble intentions, the Aatma Nirbhar campaign faced a significant amount of
backlash, which is mainly due to the following reasons:

CRITICISM OF GOVERNMENT POLICIES: Many experts criticized the government's policies as

being inefficient, inconsistent, and failing to provide adequate support to small businesses. Some also
pointed out that the government's support was limited to a few sectors and did not cover the majority of
the businesses.

INSUFFICIENT FUNDING: The government's allocation of funds for the Aatma Nirbhar campaign
was not sufficient enough to address the needs of the businesses, particularly in the small and medium-
sized enterprises (SMEs) sector.
LACK OF CLARITY IN POLICIES: Many businesses and experts complained about the lack of
clarity in government policies, making it difficult for businesses to access funding and other support.

SHORTAGE OF GOODS AND MATERIALS: The lockdown measures and restrictions on imports
resulted in a shortage of goods and raw materials, leading to supply chain disruptions and increased
prices.

LACK OF COMPETITIVENESS: many businesses found it challenging to compete with imported

goods, which are often cheaper and of better quality.

Overall, the Aatma Nirbhar campaign faced significant criticism, with experts pointing out the lack of
effective policies, insufficient funding, and shortage of goods and materials, among other challenges.

Bibliography:

"The Economics of Aatma Nirbhar Bharat" by Manoj Kumar, published by Sage Publications, 2020.

"The Promise of Aatma Nirbhar Bharat: Opportunities and Challenges" by Rajesh K. Nayyar, published
by Routledge, 2021.

SOLUTION
To address the problems and backlash faced by the Aatma Nirbhar program, the Indian government and
industry experts have proposed the following solutions:

REFORMS IN GOVERNMENT POLICIES: The government needs to undertake reforms in its

policies to ensure that they are more effective and provide better support to businesses, particularly in the
small and medium-sized enterprises (SMEs) sector. The policies should be transparent, consistent, and
provide adequate funding to businesses.

INVESTMENT IN TECHNOLOGY: The government should invest in the latest technology to support
local businesses, particularly in the manufacturing sector. This would help local businesses to improve
their competitiveness and reduce their dependence on imports.

STRENGTHENING THE SUPPLY CHAIN: The government needs to focus on strengthening the
domestic supply chain to reduce the dependence on imports and ensure that businesses have access to the
raw materials they need.

ENCOURAGING ENTREPRENEURSHIP: The government should encourage entrepreneurship by

providing financial and other support to start-ups and small businesses. This would help to create jobs and
boost the economy.

PROMOTING LOCAL BUSINESSES: The government should promote local businesses by providing
tax benefits and other incentives. This would help local businesses to compete with imported goods and
improve the overall competitiveness of the Indian economy.

Overall, these solutions aim to address the challenges faced by the Aatma Nirbhar program and promote
self-sufficiency and economic growth in India.
QUASTION AND ANSWER

1. EXPLAIN THE GOVERNMENT’S INITIATIVE- “ATMANIRBHAR BHARAT.”

under the self-reliant india (atmanirbhar bharat abhiyan), the government implemented the following
schemes:

INTRODUCED PRODUCTION-LINKED INCENTIVE (PLI) SCHEME: To establish India’s

manufacturing global leadership and boost the Atmannirbhar Bharat Abhiyan (self-reliant India) scheme,
under the Union Budget 2021-22, the government launched a production-linked incentive scheme (PLI)
across 13 sectors, at ~Rs. 1.97 lakh crore (US$ 27.02 billion), for the next five years.
o The allocated budget is an additional fund of Rs. 40,951 crore (US$ 5.45 billion),
which was for PLI electronics manufacturing schemes.
o In addition, these PLI schemes have attracted foreign players to invest in India. For
example, in February 2021, Amazon announced the establishment of a manufacturing plant for its
electronic devices in India; in March 2021, Apple started assembling iPhone 12 in India.
        
STRENGTHENED HEALTHCARE INFRASTRUCTURE: In the Union Budget 2021-22, the
government introduced a new central healthcare scheme that will be implemented over the next six years
to improve the country's healthcare infrastructure.

Under Pradhan Mantri Atmanirbhar Swasth Bharat Yojana (PMANSY), the government allocated funds
worth Rs. 64,180 crores (US$ 8.80 billion) over six years to strengthen the existing ‘National Health
Mission’ and develop capacities of primary, secondary & tertiary care and healthcare systems &
institutions to detect and cure new and emerging diseases.
          
STRENGTHENED OTHER INFRASTRUCTURE: Under the Union Budget 2021-22, The
Government pushed for higher capital expenditure to focus on infrastructure upgrades for roads, rail, and
power delivery. The government aims to improve 8,500 km of highways by March 2022; this will boost
India’s competitiveness by lowering transportation costs and improving the network between production
and consumption markets, both domestic and international.
    
INCREASED FOCUS ON WOMEN ENTREPRENEURSHIP: In 2015-16, the government, under the
Department of Science & Technology’s ‘Science & Technology for Women’ scheme, launched women
technology park (WTP) programs to empower women by training them in skills to set up their own
microenterprises and become self-reliant. In the last five years (until March 2021), ~10,000 rural women
have benefited from this program, 28 WTPs have been successfully completed and 12 parks are under
progress across the country.
The Defence Production and Export Promotion Policy 2020 (DPEPP 2020) highlights a framework to
achieve a turnover of Rs. 1 lakh 75 thousand crores (US$ 25 billion), including exports of Rs. 35
thousand crores (US$ 5 billion), in the aerospace and defense goods and services by 2025.

ACHIEVING SELF-RELIANCE IN THE DEFENSE SECTOR: Under the Atmanirbhar Bharat

Abhiyan (self-reliant India) scheme, the government launched policies to promote self-reliance in defense
manufacturing. For example, the government increased the FDI limit to 74% in defense manufacturing,
placed an ‘import embargo’ on 101 military items, and introduced the Defence Production and Export
Promotion Policy 2020.
As part of the Self-reliant India (Aatm Nirbhar Bharat Abhiyan) mission, the Ministry of Food Processing
Industries launched the 'PM Formalisation of Micro Food Processing Enterprises (PMFME)’ scheme to
provide financial, technical, and business support to upgrade the existing micro food processing
enterprises. The government allocated funds worth Rs. 10,000 crores (US$ 1.34 billion) for this scheme,
which will be implemented between FY21 and FY25.

2.EXPLAIN THE REFORMS UNDER THE HEADING MAKE IN INDIA

Make in India is an initiative launched by the Indian government in September 2014 to encourage
companies to manufacture their products in India. Its main goal is to increase the share of manufacturing
in India’s Gross Domestic Product (GDP) and to create employment opportunities for the millions of
people in the country. The initiative covers 25 sectors, including automotive, aerospace, electronics,
textiles, pharmaceuticals, and renewable energy. The reforms associated with the Make in India initiative
include tax incentives, easier land and labor laws, and improved infrastructure. The government has also
made efforts to simplify the processes of setting up and doing business in India by launching a dedicated
website and a mobile app to make it easier for investors to understand the regulations, procedures, and
processes involved. The government has also launched the ‘Make in India’ brand to promote local
manufacturing, and the ‘Digital India’ program to facilitate the use of technology in business processes.

1. IMPROVE INFRASTRUCTURE: The Make in India initiative seeks to boost the manufacturing
sector by improving the infrastructure. This includes providing better roads and transportation networks,
as well as investing in modernizing and upgrading the power sector.

2. CUT RED TAPE: The Make in India initiative seeks to make it easier for businesses to set up and
operate in India by reducing red tape and simplifying the bureaucratic processes. This includes
streamlining the registration process and providing easier access to licenses and permits.

3. FOSTER INNOVATION: The Make in India initiative seeks to promote innovation and technology
in order to make India a global leader in the manufacturing sector. This includes encouraging research
and development, as well as providing incentives for new businesses and entrepreneurs.

4. PROMOTE SKILL DEVELOPMENT: The Make in India initiative seeks to promote skill
development in India by providing education and training opportunities. This includes providing technical
and vocational training, as well as improving access to higher education.

5. IMPROVE LABOUR LAWS AND REGULATIONS: The Make in India initiative seeks to improve
labour laws and regulations in order to ensure that workers are better protected. This includes revising
the minimum wage law, introducing social security benefits, and ensuring that workplace safety standards
are met.
3. ACCORDING TO YOU SUGGEST MEASURES THAT GOVERNMENT OF INDIA SHOULD
DO UNDER ATMANIRBHAR BHARAT TO FIGHT THE PANDEMIC LIKE SITUATION ?

STRENGTHENING THE HEALTHCARE SYSTEM: The government can allocate more resources
towards building better healthcare facilities and infrastructure, providing essential equipment and
supplies, and investing in research and development for vaccines and treatments.

PREPARING A COMPREHENSIVE CONTINGENCY PLAN: The government can create a

comprehensive pandemic preparedness and response plan that outlines the necessary steps to be taken in
the event of a future pandemic.

IMPROVING PUBLIC HEALTH AWARENESS: The government can launch campaigns to raise
awareness among the public on preventative measures such as hand hygiene and vaccine uptake, which
are critical in controlling the spread of infectious diseases.

PROMOTING DOMESTIC PRODUCTION OF ESSENTIAL MEDICAL SUPPLIES: The

government can promote the production of essential medical supplies such as masks, gloves, and PPE
within the country to ensure better preparedness and reduce dependence on imports.

ENCOURAGING DIGITIZATION: The government can promote digitization in the healthcare sector,
which will help to reduce the spread of the virus and improve access to healthcare services.

BUILDING ROBUST LOGISTICS AND SUPPLY CHAINS: The government can develop a robust
logistics and supply chain infrastructure to ensure that essential medical supplies are transported and
distributed in a timely and efficient manner.

DEVELOPING A VACCINE MANUFACTURING CAPACITY: The government can promote the

development of a vaccine manufacturing capacity within the country to ensure timely availability of
vaccines and reduce dependence on imports.

INCREASING INTERNATIONAL COOPERATION: The government can increase international

cooperation to share information and resources in the fight against pandemics

CONCLUSION
In conclusion, Atma Nirbhar Bharat is a crucial initiative taken by the Government of India to promote
self-reliance and reduce the dependence on other countries. The initiative aims to strengthen the domestic
production and manufacturing capabilities of India, creating a more resilient and sustainable economy. In
light of the current pandemic situation, Atma Nirbhar Bharat has taken on an even greater significance.
By investing in healthcare, promoting domestic production of essential medical supplies, and improving
public health awareness, the government can better prepare for future pandemic-like situations. By
fostering a strong and self-reliant economy, India can take a lead role in addressing global challenges and
ensure its citizens have access to the resources they need to thrive.
REFERENCES:
"Self-Reliant India: Challenges and Opportunities" by KPMG India.

"Aatma Nirbhar Bharat: A road map for a self-reliant India" by Confederation of Indian Industry (CII)

"Aatma Nirbhar Bharat: The way forward" by the Federation of Indian Chambers of Commerce and
Industry (FICCI)

India Brand Equity Foundation (IBEF) is a Trust established by the Department of Commerce, Ministry
of Commerce and Industry, Government of India

Dr.Richa Srivastava 2019 – impact of making India in Indian economy.