Atmanirbhar Bharat - Boost For Manufacturing Industry In India

By Author: Neel Rao
Total Articles: 103
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Introduction
The Indian government has launched the 'Atmanirbhar Bharat' policy, which means 'self-sufficient India' or 'self-reliant India'. This scheme aims to make the country a more significant part of the international economy. Under this policy, the industries would pursue efficient policies to become self resilient and competitive.

This would help India to become self-generating and self-sustaining. This would have a positive impact on India's ability to recover from the Covid-19 crisis and the eventual economic fallout. Therefore, it is crucial to boost the Indian industries, making government interventions and reforms to make them competitive.

Manufacturing Amidst Covid-19
India has so far faced the pandemic with self-reliance. This is reflected from the fact, that before March 2020, the country did not produce any PPE (Personal Protection Equipment). However, the country is presently producing around 2 lakh kits daily. Of course, India has gained self-reliance through its indigenous industries. In just three months, the PPE industry in India has assumed the size of INR 10,000 crore, and it ...
... is the second-largest in the world after China.

Government Reforms For Better Business Environment
The Government has consistently worked to ensure a sound business environment in India. Besides, it is working on the Ease of Doing Business Reforms, which would ensure fast disposal of business disputes, seamless property registration, and a simpler regime of tax. All these measures would foster a better business environment in India.

Automatic Loans (Collateral-Free) For MSMEs
The government has helped the MSMEs to restart the business, providing them with emergency credit lines. This amount is up to 20% of the overall outstanding credit, as recorded on 29th February 2020. Borrowers having a turnover of INR 100 crore and an outstanding of INR 25 crore are eligible to get this loan. These loans come with a tenor of 4 years. The moratorium on repaying the principal is 12 months. The NBFCs and banks get a 100% credit guarantee cover on interest and principal. This loan is likely to benefit as many as 45 lakh units would be available till October 21, 2020. The government's credit guarantee to the bank ensures that if the MSME falters, the government would pay the loan amount.

The Manufacturing Sector Gets A Boost
The Indian government has urged the nation to purchase products that the Indian companies have manufactured locally. Therefore, the domestic manufacturing sector would benefit in the coming years. Besides, innovation in India's manufacturing industry is likely to boost India's growth. The pandemic has created uncertainty. For India, the allocation of a relief package presents different verticals with numerous opportunities. The ultimate goal is to strengthen domestic manufacturing, taking local products to the global level.

For example, India has now banned importing incense sticks to boost the industry in India. Besides, the government has restricted the import of colour TVs and rubber tyres. Some policy reforms at the broader level were revised for sectors like mineral, coal, mining, civil aviation, and defence. This would also attract foreign investments in the country.

Conclusion
The manufacturing sector in India has responded speedily to products related to Covid. With the right steps, the MSMEs can get a boost, which would eventually strengthen the entire economy. A strong economic success is awaiting the nation in the coming years. The Atma Nirbhar Bharat Abhiyan would make India self-reliant, besides boosting exports.

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