How to achieve the ‘Atmanirbhar Bharat’ dream of the PM

Gopabandhu Mohapatra

While addressing the Nation on 12.05.2020, Hon’ble PM expressed his concern over the economy, terming COVID19 crisis as unprecedented. Each and every country in the world is preparing to fight this pandemic and to protect their economy. He has categorically alerted the country that we must save lives and move forward.

Addressing the nation before the fourth phase of the nationwide lockdown, Prime Minister Narendra Modi said the fourth phase of the lockdown will be in a new form. It is told that the novel corona virus will be a part of our lives for a very long time. But we can’t let our lives remain confined around it. We will wear masks and maintain social distancing but we will not let it (the virus) affect us.

The Prime Minister emphasised on achieving self-reliance for the country at a time when the pandemic brought the economy to a standstill. This era of self-reliance will be our new pledge; we have to move on with new resolve.  In his address to the nation, the Prime Minister has announced an overall economic package worth Rs 20 lakh crore or 10% of India’s GDP, to deal with the economic crisis due to the COVID-19.

Aatmanirbhar Bharat will build 21st century India. Every big product, branded product will be based on five pillars – (i) economy, (ii) infrastructure, (iii) technology-driven system, (iv) vibrant demography and (v) demand. This special economic package is for our labourers, farmers, honest taxpayers, MSMEs and cottage industry. The details of the package will be announced in the coming days. “Special economic package will have emphasis on land, labour, liquidity and laws.”

In this hour of crisis, local suppliers have to meet our demands; Indians have to be ‘vocal about local’ and buy products from them. The Covid-19 pandemic has taught us the importance of local supply chains very well. The global brands we see today were once local; they grew after their countrymen supported them. From today, all Indians should become vocal for our local products.

Prime Minister also stressed to give prominence/promote to products manufactured in India. Request to all to buy products manufactured in India. Respect and honour to all the people who are helped/ helping to fight COVID19.

He said India has resources and talent and it will make best products, improve quality and supply chain. PM says India can improve quality and modernise supply chain. Before the outbreak, not a single PPE or N95 masks were made in India, but now we are making at least 2 lakh of PPE and 2 lakh N95 daily. When India talks of self-reliance, its focus is not on a capital-centric world order, but on the welfare of humanity at large, based on Vasudhaiva Kutumbakam. Our responsibility is to ensure that the 21st century belongs to India.

The Rs 20 lakh crore package includes Rs 1.7 lakh crore package of free foodgrains to poor and cash to poor women and elderly, announced in March, as well as the Reserve Bank’s liquidity measures and interest rate cuts. The Finance Minister on 13.05.2020, unveiled projects and schemes worth about 16 lakh crore and together with the earlier announcements made by the finance minister and the Reserve bank of India (RBI) the total size of the package came to Rs 20 lakh crore.

RBI’s cut in interest rates and liquidity boosting measures to 3.2 per cent of the GDP (about Rs 6.5 lakh crore). It will cater to various sections, including cottage industry, MSMEs, labourers, middle class, and industries. But going by the previous figures, it would seem that an additional Rs 12 lakh crore will be pumped into the economy.

But the question is “Where is money“? Whether there can be another additional budget possible? Given the central government’s fiscal constraints, it is unlikely that a large part of this stimulus package will be borne by the government. RBI may further announce liquidity infusion measures and there could be other measures like banks offering additional working capital and term loans, a part of which will be guaranteed by the government.

The comprehensive economic stimulus package would provide cash support to the poor, credit guarantee to the industry and far-reaching policy announcements for sectors such as agriculture, insurance, banking and power sectors. States will get benefit on matters of economic planning and mobilising financial resources. But they will have to commit reforms, particularly in the agricultural and power sector.