By: Aditi Sharma & Sanket Ghodeswar

Introduction

During the coronavirus pandemic in India, the lockdown, and an existing slowdown in the growth of the domestic economy and the economic impact of the pandemic, the government issued an adapted idea of self-reliance. The concept of Atmanirbhar bharat (Self-Reliant India) was introduced by Prime Minister Narendra Modi in May 2020, aiming to transform India into a self-sufficient and globally competitive economy. Rooted in the idea of Vocal for Local, Atmanirbhar Bharat envisions a resilient nation capable of sustaining itself while also contributing to the global economy. By promoting entrepreneurship, strengthening MSMEs, and encouraging indigenous production, this vision aspires to make India a key player in various sectors, from technology and defense to agriculture and healthcare. The Atmanirbhar Bharat Abhiyan stands on five key pillars: economy, technology-driven systems, infrastructure, vibrant demography, and demand & supply chain. Additionally, under India Vision 2047, the nation is committed to emerging as a global powerhouse. This initiative goes beyond social and economic progress—it underscores India’s significance and the role of its citizens in shaping global development.

Key Pillars of Aatmanirbhar Bharat: –

1] Economy: –

As the outbreak of Covid 19 has clearly demonstrated that the world including India was not fully prepared to tackle the crisis without any external help. So government of India under Aatmanirbhar Bharat economy pillar focuses on achieving sustainable growth. The goal is to develop a strong financial ecosystem that supports industries, attract foreign investment and promote local production. A lot of initiatives like Production Linked Incentive and Corporate Tax Reduction have been introduced to boost domestic manufacturing. At the same time reforms in banking sector aims to improve efficiency and strengthen economic stability.

2] Infrastructure: –

Absence of robust infrastructure further escalated India’s problem during covid 19 pandemic. However, the second pillar which is infrastructure is very vital for any country’s economic development as it enhances industrial efficiency and ease of doing business. In regards of this Government of India has launched ambitious project like National Infrastructure Pipeline which involves an investment of 100 lakh crores to develop roads, ports and railway. To strengthen transportation and logistics government also came up with Bharatmala and Sagarmala projects. Additionally, with the launch of Smart cities mission it also aims to create sustainable urban spaces with advanced technology integration.

3] System: –

System which is third pillar talks about modernizing governance and creating transparent business environment. The main reason behind this is to streamline governance and simplify regulatory process so that business can evolve in more amicable way without bureaucratic hurdles. Government has taken prominent step toward digitalization by expanding e-governance, simplifying tax structure through GST and introducing start up friendly policies.

4] Vibrant Demography: –

Government introduced Vibrant Demography as 4^th pillar with vision to leverage India’s young and dynamic workforce for economic growth. According to MoSPI report titled ‘Youth in India 2022’, by the year 2036, those above the age of 30 will form the majority of population. To extract benefit, initiative like Skill India Mission and Pradhan Mantri Mudra Yojana are being explored. At the same time National Education Policy 2020 ensure that youth are better prepared for the job market by bridging gap between skills and academic education.

5] Demand & Supply Chain: –

The demand and supply chain pillar focuses on strengthening local market and mitigating dependency on imports. Through initiative like ‘Vocal for Local’ and ‘Make in India’ government tries to promote domestic industries and boost export. The government has also introduced reforms which support MSME, improve agriculture logistics through e-NAM and enhance infrastructure to facilitate faster goods movement.

Government Initiatives on Atmanirbhar Bharat

The Atmanirbhar Bharat Abhiyan, launched in May 2020, represents India’s strategic push towards self-reliance across various sectors. With a financial package of ₹20 lakh crore (approximately 10% of India’s GDP), the initiative aims to strengthen domestic industries, enhance economic resilience, and reduce dependency on imports. Several key government initiatives have been introduced under this mission to promote self-sufficiency in manufacturing, technology, defense, infrastructure, and financial sectors.

One of the flagship programs under this initiative is the Production-Linked Incentive (PLI) Scheme, which provides financial incentives to domestic manufacturers across 14 key sectors such as electronics, pharmaceuticals, and automobiles. With an outlay of ₹1.97 lakh crore, the scheme is designed to enhance India’s export competitiveness and boost local manufacturing. Complementing this effort is the Make in India 2.0 program, which focuses on 27 champion sectors, including defense, renewable energy, and textiles. By attracting foreign direct investment (FDI) and improving domestic production capabilities, this initiative has already garnered over $81.72 billion in FDI inflows during FY 2021-22.

To support small and medium enterprises, the government launched the Emergency Credit Line Guarantee Scheme (ECLGS) with an allocation of ₹5 lakh crore, benefiting over 1.14 crore MSMEs. This scheme has played a crucial role in ensuring the sustainability of these enterprises, particularly during economic downturns. Infrastructure development has also been a key priority, with the PM Gati Shakti – National Master Plan launched at an investment of ₹100 lakh crore to improve multi-modal connectivity through enhanced transport networks across roads, railways, and ports. Additionally, the Pradhan Mantri Mudra Yojana (PMMY) has sanctioned loans worth over ₹22.5 lakh crore to promote entrepreneurship among small businesses.

Recognizing the importance of digital transformation, the Digital India initiative, with an investment of ₹1.13 lakh crore, has been instrumental in bridging the digital divide. Under the BharatNet program, over 1.5 lakh Gram Panchayats have been connected with high-speed broadband, enabling greater digital penetration in rural India. Another crucial aspect of self-reliance is defense manufacturing, which the government has strengthened through the Defence Indigenization Policy. A negative import list has been introduced to restrict imports of over 310 defense items, prioritizing indigenous production. As a result, the defense sector received a record ₹1.62 lakh crore capital outlay in Budget 2023-24 to further boost local manufacturing.

The One District, One Product (ODOP) initiative has been another key driver of self-reliance, promoting region-specific products with marketing, branding, and financial assistance. Over 700 products across 733 districts have been identified under this scheme, significantly boosting rural employment and exports. Additionally, to foster entrepreneurship, the Startup India initiative has facilitated the recognition of over 90,000 startups, with more than 100 unicorns emerging from India as of 2023. The Standup India scheme has also sanctioned loans worth ₹40,710 crore to promote business ownership among women and SC/ST entrepreneurs.

The Atmanirbhar Bharat initiative, backed by robust policies and substantial financial commitments, is driving India’s journey towards economic self-reliance. By fostering local industries, enhancing infrastructure, and supporting innovation, these initiatives are positioning India as a global manufacturing and digital powerhouse, paving the way for sustained economic growth and resilience.

Case Study: Mobile Manufacturing in India

India has rapidly become the world’s second-largest mobile phone manufacturer. Before 2014, 78% of mobile phones were imported, but with the Make in India and PLI schemes, domestic production now exceeds 300 million units annually. Major global brands like Samsung, Apple, and Xiaomi manufacture in India, creating jobs and reducing import dependency. In 2022, India exported ₹45,000 crore worth of mobile phones, showcasing the success of targeted policy interventions in promoting self-reliance.

Challenges in Implementing Atmanirbhar Bharat

Despite its ambitious vision, Atmanirbhar Bharat faces several challenges. Infrastructure and supply chain inefficiencies, including high logistics costs and outdated transportation networks, hinder smooth production and trade. Financial constraints, especially for MSMEs, remain a concern, as many small businesses struggle with access to affordable capital despite government support schemes.

A shortage of skilled labor is another obstacle, with gaps in industry-specific expertise affecting productivity and innovation. While Skill India aims to bridge this gap, more efforts are needed in advanced technology training. Additionally, India’s dependence on imported raw materials, particularly in sectors like electronics and pharmaceuticals, limits self-sufficiency. Strengthening domestic R&D and incentivizing local production of critical components can help reduce this reliance.

Regulatory and bureaucratic hurdles further slow business operations, making it difficult for investors to navigate complex approval processes. Simplifying regulations and ensuring policy stability are crucial to improving the ease of doing business. Global trade uncertainties and geopolitical tensions also pose risks to India’s self-reliance efforts, affecting supply chains and export markets. Additionally, climate change and environmental concerns demand sustainable practices within industrial growth, requiring a balance between economic expansion and ecological responsibility.

Addressing these challenges requires continuous reforms, infrastructure investments, and skill development initiatives. By tackling these issues, India can strengthen its Atmanirbhar Bharat mission and achieve long-term economic resilience.

Conclusion: –

Achieving self-reliance under Aatmanirbhar Bharat is not merely an economic policy but a bold vision for India’s transformation into developed economy. While significant progress has been made in strengthening these five pillar yet the journey of converting India into self-reliant nation is far to achieve. The major hurdles like infrastructure bottleneck, dependence on import for critical material like semiconductor, MSME financial constraint and skilled workforce limit India’s ability to manufacture high end product domestically. Also bureaucratic delay and complex law stop people from innovation and investment.

But the success of the Aatmanirbhar Bharat mission depends on synergy between government, citizens and private sector. By encouraging research and development, supporting MSME, investing in modern infrastructure and digital transformation can really help India to become self-reliant.  The path toward Aatmanirbhar bharat is challenging one but still achievable with robust leadership, strategic planning and collaborative effort of people.

CASE STUDIES: –

1] Manufacturing of PPE Kits: –

During covid 19 pandemic there was global crisis on exporting essential medical equipment like PPE Kits. In response to this India exported 23 million set of PPE Kits to countries like USA, UK, Senegal, Slovenia and UAE by the end of July 2020, when it’s domestic supply had outpaced domestic demand.

2] Arogya Setu App: –

World Bank in its report appreciated “Arogya Setu App” which is an effective way to trace and control covid. At the same time Bill Gates also praised India government for effective use of digital infrastructure to identify and connect people to health services for mitigation of corona virus.

3] Adivasi Women Initiative in Chhattisgarh: –

As hand sanitizer faces shortages during covid 19 pandemic, Adivasi women turned to manufacturing herbal hand sanitizer under brand name ‘Madhukam’. Samarth Jain, a scientist and researcher, helped these women for developing sanitizer from the base of traditional mahua brew, which is part and parcel of Adivasi culture. 

References

1. Ministry of Finance, Government of India. (2020). Aatmanirbhar Bharat Abhiyan: Economic Package and Reforms. Retrieved from https://www.finmin.nic.in
2. Ministry of Commerce & Industry, Government of India. (2021). Make in India Initiative. Retrieved from https://www.makeinindia.com
3. Ministry of Micro, Small & Medium Enterprises (MSME). (2022). MSME Growth and Government Initiatives. Retrieved from https://msme.gov.in
4. Ministry of Electronics and Information Technology (MeitY). (2023). Production-Linked Incentive (PLI) Scheme for Electronics Manufacturing. Retrieved from https://www.meity.gov.in
5. National Institution for Transforming India (NITI Aayog). (2021). India Vision 2047: Policy Framework for a Self-Reliant Economy. Retrieved from https://www.niti.gov.in
6. Ministry of Defence, Government of India. (2023). Defence Indigenization Policy and Import Restrictions. Retrieved from https://mod.gov.in
7. World Bank. (2021). India’s Digital Transformation and COVID-19 Response: Arogya Setu App Case Study. Retrieved from https://www.worldbank.org
8. Ministry of Skill Development and Entrepreneurship (MSDE). (2022). Skill India and Pradhan Mantri Mudra Yojana Reports. Retrieved from https://www.msde.gov.in
9. Economic Survey of India. (2022). Impact of Atmanirbhar Bharat on MSMEs and Local Manufacturing. Retrieved from https://www.indiabudget.gov.in
10. Gates, B. (2020). Remarks on India’s Digital Public Infrastructure and COVID-19 Response. Retrieved from https://www.gatesfoundation.org