Government Schemes in our country are introduced by the government with the intention of addressing the societal and economic well-being of the inhabitants of this nation. These schemes play a pivotal role in resolving innumerable socio-economic issues that afflict the Indian society at large.
A little while back, Prime Minister Narendra Modi promulgated the Atma-nirbhar Bharat Abhiyan (or Self-reliant India Mission) to revive the economic activity of the country, inimically affected by the Covid-19 outbreak in differing ways, and further stated that in the days ahead his government would be revealing the details of an economic conglomeration- worth rupees twenty lakh crore or about ten percent of India’s GDP in the year 2019-20- striving towards accomplishing the mission. The conglomeration italicizes land, labor, liquidity and laws.
The purpose of this scheme is double-barreled. First being, ad interim manoeuvre such as liquidity infusion and direct cash transfers for the penurious, which will work as a buffer for those in grave stress (farmers, daily wage workers, vegetable vendors, and migrant workers etc.), and hopefully will lessen their burden. The second fragment of this scheme being, the longstanding reforms in growth-critical sectors (such as MSME, cottage industries etc.) to make them internationally vying and appealing. A number of ameliorations are set forth to make India a self-reliant economy and alleviate negative outcomes in coming times. A few of those ameliorations are: simple and comprehensible laws, rational taxation system, supply chain ameliorations in agriculture sector, competent human resources, and a resilient financial system. This stimulus package might be able to resuscitate the economic activity and generate a whole lot of opportunities for growth in sectors like agriculture, micro, macro, medium enterprises, power, coal and mining, defense, civil aviation etc., nevertheless there are numerous drawbacks that are required to be addressed in order to achieve the vision of this ‘abhiyan’.
The impact of this package will be as following on different sectors of the economy: first, the manoeuvre declared for the primary sector (agriculture and allied sectors) are particularly transformative. These measures are initiatives on the road to One Nation One Market, and will succour India to become the food factory of the world. Second, this conglomeration will aid the finance destituted sectors and will help in sustaining the labor intensive industries, therefore assisting in leveraging India’s comparative advantage. Third, government has launched various online education platforms, which shall facilitate schools and universities to stream online courses without further loss of teaching hours.
Corresponding problems that will be faced on implementing this scheme are: issues related to liquidity, lack of demand, lack of backward and forward linkages, burgeoning fiscal deficit, difficulty in mobilizing finances, etc. The measures that should be taken to resolve the above stated issues are, enhancing demand, mobilizing finances, making holistic reforms, etc.
The economic predicament set off by the Covid-19 pandemic is comparable with 1991 economic predicament, which was a herald paradigm shift through liberalization, privatization and globalization. The post Covid-19 aeon may usher in unprecedented opportunities provided that the implementation deficit is adequately addressed.
Track2Training 