Road to Self-Reliance | Gist of Rajya Sabha TV / RSTV (now Sansad TV) - UPSC PDF Download

Context

• In the wake of the pandemic, the Prime Minister of India introduced a futuristic initiative of Atmanirbhar Bharat with the prime objective of making India self-reliant in various sectors. 

The Background

• Under the Atmanirbhar Bharat initiative, a special economic and comprehensive package of rupees 20 lakh crores was announced to combat the disastrous effects of the pandemic. 
• The major objective of Atmanirbhar Bharat was to bolster the Indian economy and increase the competitiveness of Indian products in the global market with the underlying objective of self-reliance. 
• The five pillars of Atmanirbhar Bharat include: 
  • Economy
  • Infrastructure
  • System
  • Vibrant Demography 
  • Demand
• Various reforms have been undertaken by the government under the aegis of Atmanirbhar Bharat Abhiyan. For example:
  • Supply Chain Reforms for Agriculture
  • Rational Tax Systems
  • Simple and Clear Laws
  • Capable Human Resource 
  • Strong Financial System

The Atmanirbhar Bharat Campaign: Exploring Further

• The Swadeshi Steam Navigation Company was established in 1906 by freedom fighter V. O. Chidambaram Pillai to compete with the British India Steam Navigation Company's monopoly on the commercial route between Tuticorin and Sri Lanka.
• In spite of the economic difficulties, Chidambaram Pillai persisted in founding this indigenous business.
• The colonial era is where the futuristic ideology of self-reliance originated.
• The Atma Nirbharta (self-reliance) message gained traction with the start of the Atmanirbhar Bharat campaign, as have other notable movements of our freedom struggle, including the Swadeshi movement.
• It was emphasised that the difference between an independent and a self-centered India must be made.
• When India's commendable capacity for producing vaccines during the pandemic spoke the language of compassion and distributed the COVID-19 vaccinations to other countries that were in need, this message became more clear.
• With the help of "Vasudhaiva Kutumbakam," India's self-reliance in vaccine production has reached the borders of vaccine diplomacy (the entire world is one family).
• The Atmanirbhar Bharat objectives have advanced significantly thanks to the Production Linked Incentive (PLI) Scheme.

Challenges

• The Atmanirbhar Bharat Abhiyan has been criticised as a way to promote protectionism despite the clarification given by the government. This might affect the international trade interests of India and reduce the chances for international companies to carry out business in India. 
• It is alleged that the Atmanirbhar Bharat campaign is a revised version of the Make in India and lacks originality. 
• There is inadequate availability of capital for infrastructure development to actually boost self-reliance. 
• As the global economies were hit by the pandemic, the investments to promote business have been reduced. 
• The MSMEs, which are envisaged as an integral part of the vision of self-reliance, were major victims of economic slowdown and it will take a long time and effective policy interventions for their recovery.
• The slowdown of aggregate demand
• Multiple issues related to liquidity
• Widening fiscal deficit
• Difficulty in mobilising finances
• High import dependence on solar panels, Active Pharmaceutical Ingredients, semiconductors, chips for electronic devices and so on.
• Lack of skilled workforce
• The large gap between industry and academia

Heading towards self-reliance

• There have been considerable efforts put forward by the government to establish self-reliance in various sectors. The policies must prioritise to ensure resilience towards upcoming challenges to retain the competitiveness of India in the global supply chain. 
• The entire strategy of Atmanirbhar Bharat is perceived as a progressive step by the experts to encourage a supply-side push by enhancing the availability of capital on flexible terms and by supporting the agriculture and business sectors. 
• The purchasing power of the people for the increase of demand must be addressed to bring back the normal rhythm of liquidity. 
• It is recommended that the government must develop a meticulous approach to implement the policies in an effective manner that will enable the citizens to reap the benefits of a self-reliant India with sustainability, resilience and inclusiveness.