AATMA-NIRBHAR BHARAT: POSSIBILITIES AND REALITY- (Blog)


Background

The idea of Atma-nirbhar India or self-sufficiency is at the heart of Prime Minister Narendra Modi. There are parallels between Prime Minister Modi’s message and Mahatma Gandhi’s concept of a self-reliant India, the bed of his indigenous philosophy. Self-sufficiency is woven into India's journey from the Swarajya movement itself. Atmanirbhar India's new initiative sows the seeds for a new course of long-term development and serves as an emerging pivot for India as a manufacturing and investment hub. To achieve this vision, India must focus on holistic and sustainable development.

Introduction

The government has announced the "Atma Nirbhar Bharat Abhiyan" to revive every sector of the economy from demand, supply to manufacturing and to make India self-sufficient to sustain and resolve any future Black Swan incident.

Some call self-sufficient India a re-packaged version of the Make in India movement using new taglines such as 'Vocal for Local'.

Even for some, the so-called Atmanirbhar Bharat means India to boycott Chinese products, but the truth is that Atmanirbhar Bharat is promoting goods made in India, making it practically difficult for India in the short term as India imports $ 75 billion worth of goods from China every year. Parts of the Indian industry depend on China. [1]

What the government is doing?

There are some things a country can do better than others. If it focuses on doing more of what makes it better - by draining resources without doing less efficient things - it will improve its well-being.

The government has identified 12 sectors, including auto components, textiles, industrial machinery, furniture, where the focus is on making, India a self-sufficient country and a global supplier, while a self-sufficient India can ensure the production of quality products to meet India's needs and surplus production on a large scale. These sectors have been identified as India’s competitive and comparative advantage compared to other countries. For this reason, India can not only be ‘self-sufficient’ (self-sufficient) but also run a global supply chain. [3]

As part of the Atmanirbhar Bharat package, several government decisions were taken to change the definition of MSMEs, increase the opportunity for private participation in many sectors, and increase FDI in the defense sector; and received support for vision in many areas, such as the solar manufacturer's sector. [2]

Self-sufficient India does not mean that we are isolated from the world, it will lead to an increase in India’s share in world trade.

Reality check

Let’s take the example of medicines, India is called "the world's pharmacy." In terms of export volume, India is currently the largest provider of generic medicines worldwide, supplying 18 percent of the world's generic medicines. India imports 70% of its raw material from China and during COVID 19 because the demand for global medicine is higher than usual, which has pushed China to raise prices. Prices of raw materials from 60% to 190%. [4]

India cannot even make vitamin C tablets from scratch and it has to change. There are around 53 bulk drugs that can be manufactured in India, India needs to set up bulk drug parks, invest in import technology on infrastructure for that.

The digital age has propelled the world to use electronics on an unprecedented scale. Worldwide device exports - PCs, tablets, and mobile phones - totaled 2.2 billion units in 2019. The US, Japan, Korea, China, Singapore, etc. are major producers of semiconductor chips and have a strong grip on the global economy leaving India Behind them. [5]

There have been challenges in setting up semiconductor wafer fabrication (FAB) units in India. This is due to several factors, including the lack of infrastructure in the country, including skilled workers. It is also difficult to compete with neighboring countries China and Vietnam, which are favorite destinations for global chipmakers due to improved cost-effectiveness. Intel said it was not interested in starting manufacturing in India in 2014 for these reasons.

India wants foreign companies to come here and invest in infrastructure, train Indians so that we can be ready for the future.

CONCLUSION 

We need to focus on innovations now and import only the technology that will help India become self-sufficient. Atmanirbhar Bharat does not mean that there are no imports, it means that buying goods made in India which associates with the phrase vocal for local. 

Example of recent success as self-reliant India.

India's protective equipment (PPE) sector grew from zero before March to 1,50,000 pieces per day by early May, setting a good example for a self-sufficient India. The PPE industry in India is $ 980 million in a single two months, the second largest after China.

In July 2020, Reliance Jio announced India's own 'Made in India' 5G network. In mid-July, Mukesh Ambani announced that "Geo has created a complete 5G solution from scratch, which will enable us to launch world-class 5G service in India, using 100 percent indigenous technologies and solutions". 

References

 [1] https://en.wikipedia.org/wiki/Atmanirbhar_Bharat

[2]https://www.india.gov.in/spotlight/building-atmanirbhar-bharat-overcoming-covid-19

[3] https://www.financialexpress.com/economy/aatmanirbhar-bharat-twelve-sectors

[4]https://theprint.in/health/azithromycin-

[5]https://analyticsindiamag.com/india-semiconductor-chip-manufacturing

-Muskan Gupta
Maharaja Agrasen Institute of Management Studies.

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