GS Paper 3 : Infrastructure
Qn. What do you understand by ‘Atmanirbahar Bharat’ in manufacturing sector?Enumerate the different initiatives recently taken by the union government to attract investments in the manufacturing sector. (250 words)
Why this Question ?
The question has been asked in the backdrop of theUnion Governments announcement to extend the PLI (Production Linked Incentive )scheme to more sectors.
Demand of the Question:
The questions is very straightforward as it attempts to bring more clarity to the term “Atma Nirbahar Bharat” – a commonly used term these days.It is by clearly putting forward what Atma Nirbahar means, the recent steps taken by the Union Government to promote domestic manufacturing should also be highlighted. This is a straightforward factual question.
The introduction can state in general terms the slowdown faced by the manufacturing sector as a result of the COVID-19. The introduction can point out to the contraction in the GDP in the last quarter due to the lockdown. The negative GDP growth rate of -23% can be brought in the introduction.
It should also be pointed out in the introduction that the Union Government has responded to the slowdown by launching a series of steps ranging from the postponement of interest re-payments to fiscal incentives in terms of tax cuts.
The first part of the question deals with the definition of the term “Atmanirbahar Bharat”. Atmanirbahar bharat though a commonly used term has to be rightly understood. While it indicates self reliance, it does not mean breaking off from the global interconnections of trade. Atma Nirbahar must be understood in terms of the Union Government’s initiatives to boost domestic production of manufactured items so that India becomes less dependant on China for the majority of its manufactured items.
‘Atmanirbahar Bharat’ is an attempt by the Union Government to attract Foreign Investments into various manufacturing activity. This can bring in the critical technologies that can boost growth and jobs in India. The philosophy of atma nirbahar bharat is never inward looking but rather outward looking so as to be a part of the global supply chain.
The second part of the question expects the different recent initiatives of the Union Government to be listed out.
- Production Linked Incentive (Extension to different sectors)
- Extended Credit Guarantee Scheme
- Liberalization in private sector participation in defense and space sector.
- Labour Code Bill 2020
These initiatives should be expanded at least upto a length of one sentence so as to point out the benefit of these initiatives. The content part of the answer need not elaborate in detail the various steps taken by the Union Government. Just mentioning the different steps would suffice since the question only mentions “Enumerate” as the directive word and not “Explain”
The Conclusion can point out the seriousness of the government’s intent to make India emerge as a hub of manufacturing. As a result of these initiatives government aims to reduce dependency on China in terms of bulk drugs, automotive components and electronic items.
These sectors are hugely labour oriented and hence any augmentation of domestic manufacturing capacity in these sectors can only result in increased gains to India in terms of growth and development in India.