Yojana 2020: Self-Reliant India

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Five Pillars

5 Pillars of Self-Reliant India
Self-Reliant India Campaign

Ethical Wealth Creation

Self-Reliant Citizens for Self-Reliant India

  • A family of 130 crore Indians.
  • Earning livelihood using skills.
  • Skilling opportunities needs to be provided.
  • Active govt. support for self-reliant citizens.
  • Utilization of expenditure (spent on subsidies) for education and continuous skill development.
  • Equipping the economy with modern techniques.
  • Technologically training the nation՚s youth.

Growth through Employment

  • Central to inclusive growth.
  • Jobs in the formal sector need to be boosted.
  • Contributes to mobility of future generations.
  • Leaving large fractions of the labour force underutilized or unutilized is inefficient.
    • Output remains untapped.

Wealth and Skill through Private Enterprise and Government

  • Recognising the complementary roles of the private sector and the govt.
  • Recognizing market forces and private enterprise.
  • Social prosperity and business profit cannot exist in isolation from each other.
  • Self-Reliance doesn՚t mean:
    • A return to the License permit Raj.
    • Govt. once again will occupy the Commanding Heights.

Riddhi (Wealth and Prosperity) and Siddhi (Skill)

  • Citizens learning skill.
  • Supporting MSMEs and SMEs by providing skilled labour.
  • Investment in R&D, Innovation like Digital Economy, Medical Research etc.
  • Judicious use of the earth՚s resources.
  • Aim to help the rest of the world.
  • Retaining economic presence:
    • Healthcare
    • Lifesaving medicines
    • Payment systems
    • Mobile communication and Defence
  • Enabling DBT to the poor and vulnerable through the Jan Dhan Yojana.
  • Swachh Bharat Programme is bringing an awareness regarding cleanliness.

Produce for the Bottom of the Pyramid

  • Indian firms focusing on producing goods and services.
  • Tailoring the product to the bottom of the economic pyramid.
  • Example
    • The Sachet revolution packaging the shampoo, toothpaste or hair oil in small sachets (could be easily afforded by the poor՚s) .
  • Producing goods and services meeting the needs of the large no. of consumers at the base of the income pyramid.
  • Creation of development models will help India occupy a rightful place as an economic power.

Importance of Agriculture for a Self-Reliant India

  • Increasing productivity and output in the agricultural sector.
  • Improving food security and valance of payments.
    • Through reduced food imports and increased exports.
  • Sustaining agro-processing.
  • Manufacturing of agricultural inputs.
  • Creating employment and boosting income.
  • Ample opportunities for non-labour saving innovations:
    • Better crop mix
    • Better fertilizers
    • Better seeds
    • Better planting patterns

Rediscovering Spiritual Ethos of Ethical Wealth Creation

  • Considering the climate change challenges.
  • Environment has been influenced detrimentally due to COVID-19.
  • Angus Madison research:
    • India accounted for more than one-third of the world՚s GDP till about 1750 A. D.
  • Economic Survey 2020:
    • India dominated the global economy.
    • Age-old traditions.
    • Commended ethical wealth creation.
    • A noble human pursuit.
  • Indian literature recognizes wealth creation as a worthy human pursuit. For e. g. Kautilya՚s Arthashastra, The Thirukural treatise on enriching human lives by Tamil Saint and Philosopher.
  • India needs to lead ‘Frugal innovation’ :
    • Using mother earth՚s resources as less as possible.
    • Maximizing welfare for a large proportion of humanity.

Self – Reliance is Not Doing Everything by Oneself

  • Self-reliant economy does not mean building an economy in isolation.
  • Building the necessary capabilities.
  • doesn՚t imply complacent self-sufficiency.
    • India cuts itself from rest of from the rest of the world.
    • Avoiding competing with the best in the world.
  • Self-reliance requires delineating sectors (strategically critical to the nation) .
    • Investing in these sectors.
    • Dependence during vulnerable time is minimised.

Aatmanirbhar Bharat Abhiyan

Aatmanirbhar Bharat Abhiyan

Making Farmers Self-Reliant

Making Farmers Self-Reliant

Mitigating Risks, Securing Livelihood

  • Steady surge in extreme weather events.
  • Vagaries of monsoon made Indian farmers vulnerable to frequent crop failures.
  • Migration of famers to non-farming sectors.
  • Crop insurance scheme 2016:
    • Provides coverage from pre-sowing to post-harvest.
    • Against natural non-preventable risks.

Pradhan Mantri Fasal Bima Yojana

Pradhan Mantri Fasal Bima Yojana
  • Increasing farmer՚s income.
  • Crop insurance claims of over ₹ 8,000 Cr disbursed to farmers across 19 states during lockdown.
  • Small fragmented and dispersed landholdings are recognized.
  • Nearly 85 % of land holdings belong to small and marginal farmers.
    • Being unrecognized unable to realize good value for their produce.
  • Small producers do not have the volume individually to get the benefit of economies of scale.
  • Covers all food grains, oilseeds and annual commercial/horticultural crops.
  • One season one rate:
    • Max 2 % for Kharif
    • Max 1.55 for Rabi
    • 5 % for Annual Commercial/Horticultural Crops
  • Covers all risk of crop cycle:
    • Preventive sowing
    • Risks to standing crops
    • Post harvesting losses
  • Losses due to hailstorm:
    • Landslide and inundation assessment.
    • Yield losses at individual field level.
  • Post-harvest losses for cut & spread crops:
    • Upto 14 days
    • Due to cyclone, cyclonic rains and unseasonal rains
  • On account Payment:
    • Upto 25 % of sum insured due to prevented sowing or mid-season adversity.
    • Upto 25 % of likely claims due to mid-season adversity balance after report of crop cutting experiment based yield date.

AatmaNirbhar Desh

AatmaNirbhar Desh

Procurement & Support

  • Recommendation to hike Minimum Support Price (MSPs) .
  • One and half times of the cost of production (2018 - 19) .
  • MSPs of all mandated kharif, Rabi and other commercial crops were increased with a return of 1.5 times.
  • For the season 2020 - 21 MSPs of 14 kharif crops were increased to the tune of 50 % to 83 % .
  • Under new MSP regime cost of production:
    • Maximum for pearl millet (83 %)
    • Urad (43 %)
    • Tur (58 %)
    • Maize (53 %)
    • For rest of the crops usual 50 % return over the cost of production.

Kisan Credit Card Scheme

  • To provide institutional credit to the farmers.
  • To meet the various needs related to farming.
  • A liberal scheme that supports small and marginal farmers, share croppers, oral lessees and tenant farmers.
  • Scheme has been expanded recently:
    • Govt. has waived processing fee.
    • This also includes fee for inspection, ledger folio charges and other service charges.
    • For short term crop loans up to ₹ 3 lakh.
    • Interest subvention for 1 year in case of timely repayment.
      • Interest rate of 7 % per annum gets reduced to 4 % .
  • PM-Kisan beneficiaries have been brought under the ambit of KCC.
    • A flexible limit of ₹ 10,000 to ₹ 50,000.
    • Provided to marginal farmers.
    • Based on land holdings and their credit needs.
  • KCC has been extended to dairy farmers and fishers.
  • Aatmanirbhar Bharat Package:
    • A special drive.
    • Launched to provide KCC to 1.5 crore dairy farmers.
    • Associated with milk unions and milk producing companies within two months (1st June -31stJuly, 2020) .
  • Aims to cover 2.5 crore new farmers under the new KCC scheme.
  • PM-Kisan initiative by the GOI provides income support to all farmer families across the country.

Trade and Marketing

  • To ensure better returns to the farmers.
  • Especially to the small and marginal ones.
  • Pan-India electronic trading portal was launched for business and marketing of agricultural commodities in India on 14th April, 2016.

ENAM

Types of ENAM
  • Popularly known as Electronic National Agriculture market.
  • Aims to integrate existing agricultural mandis.
  • An online platform to realize the vision of ‘One Nation, One Market’ .
  • In phase I 585 mandis were integrated and in Phase II 415.
  • Three new modules of eNAM:
    • Launched during COVID-19 lockdown.
    • Deemed Market or Sub Market Yards (own collection centres) .
    • Warehouses for Electronic Negotiable Warehouse Receipts (eNWRs) trading.
    • Logistics module facilitates transportation of commodities from farm to mandis.
  • Agriculture Export Policy:
    • Aimed at doubling agricultural exports.
    • Integrating Indian farmers and agricultural products.
    • To promote and facilitate export of Indian agri-produce at new destinations.
    • Import duties have been raised and provision of MSP was imposed on selected commodities.

FPOs

  • Farmer Producer Organizations.
  • Have better bargaining power.
  • 383 FPOs registered during 2014 - 17.
  • 223 FPOs registered during 2011 - 14.
  • Total increase of 71.74 % towards collectivization of farmers.
  • They are motivating workers even in non-farming sectors to Organise themselves into Producer Organizations.

Other Welfare Schemes Launched by Various State Governments

  • The ‘KALIA’ scheme of Odisha.
    • “Krushak Assistance for Livelihood and Income Augmentation” .
    • To accelerate agricultural prosperity and reduce poverty.
    • Around ₹ , 10,180 crores will be spent over three years until 2020 - 21.
  • Mukhya Mantri Krishi Ashirwad Yojana of Jharkhand.
    • Includes all small and marginal farmers of the state.
    • Having arable land up to max of 5 acres.
    • A grant-in-aid at the rate of ₹ 5000 / – per acre per year.
  • Rythu Bandhu of Telangana.
    • A support scheme for farmers in Telangana.
    • Gives every beneficiary farmer ₹ 4,000 per acre as “investment support” before every crop season.

Transforming Agriculture Sector

Transforming Agriculture Sector

Amendment to the Essential Commodities Act

  • Commodities like cereals, pulses, oilseeds, edible oils, onion and potatoes will be removed.
  • Will put aside fears of private investors of excessive regulatory interference in their business operations.
  • Freedom to produce, hold, move, distribute and supply.
  • Lead to harnessing of economies of scale and attract private sector/foreign direct investment into agriculture sector.
  • Also will help drive up investment in cold storages and modernization of food supply chain.

Safeguarding Interest of Consumers

  • Agricultural food stuffs can be regulated in situations of war, famine, extraordinary price rise and natural calamity.
  • To ensure investments in agriculture are not discouraged:
    • Installed capacity of a value chain participant remain exempted.
    • Export demand of an exporter remain exempted.
    • From stock limit imposition.
  • Price stability will help both the farmers and the consumers.
  • Create a competitive market environment.
  • Prevent wastage of agri-produce that happens due to lack of storage facilities.

The Farming Produce Trade and Commerce (Promotion and Facilitation) Ordinance, 2020

  • Create an ecosystem where farmers and traders will enjoy freedom.
  • Choice of sale and purchase of agri-produce.
  • Also promote barrier-free inter-state and intra-state trade and commerce outside the physical premises of the markets.
  • Notified under State Agricultural Produce Marketing legislations.
  • More choices for the farmers.
  • Reduce marketing costs and help them on getting better prices.
  • Electronic trading in transaction platform to avoid scams.
  • Famers won՚t be charged any cess or levy for sale of their produce under this act.
  • A separate dispute resolution mechanism for the farmers.

One India, One Agriculture Market

  • Aims at creating additional trading opportunities outside the APMC market.
  • Market yards to help farmers.
  • Remunerative prices due to additional competition.
  • Will supplement the existing MSP procurement system.
  • Provides stable income to farmers.
  • Lay the foundation for ensuring golden harvests for hard working farmers.

The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Ordinance, 2020

  • Weaknesses such as weather dependence, Production uncertainties and Market unpredictability.
  • Agriculture becomes risky and inefficient in terms of both input & output management.
  • The Ordinance will:
    • Empower farmers for engaging with processors, wholesalers, aggregators, large retailers, exporters, etc.
    • Transfer the risk of market unpredictability from the farmer to the sponsor.
    • Enable the farmer to access modern technology with better inputs.
    • Reduce cost of marketing and improve farmer՚s income.
    • Act as a catalyst to attract private sector investment.
    • Engagement of farmers in direct marketing.
    • Eliminating intermediaries.
      • Resulting in full realisation of price.
      • Prohibition of Sale, lease or mortgage of farmers land.
      • Land is also protected against any recovery.

Gandhiji՚s Approach of Self-Reliance

  • Provided a distinct and alternative paradigm of development.
  • To strengthen rural economy and promote indigenous production to attain self-sufficiency.
  • Economic development is not about having more rather about being more.
  • Ensuring protection of the people and their rights in an equitable manner.
  • Future potential of India՚s growth depend on its current policies to strengthen the economy along with welfare of the people.

Hind Swaraj (1909)

  • Views about localism.
  • Grass root level participation.
  • Role of local community.
  • Capacity to produce, generate and provide to all.
  • Within a community sustainable living.
  • The Constructive Programme (1941) :
    • Construction of Poorna Swaraj.
    • Through truth and non-violent means.
    • Independence of each and every unit.
  • If national life becomes as perfect as to become self-regulated, no representation becomes necessary.

Purna Swaraj

  • Declaration of the Independence of India.
  • Promulgated by the Indian National Congress on 19 December 1929.
  • For Gandhiji, Swaraj of the people meant the sum total of the Swaraj (self-rule) of individuals.
  • He envisaged to build a strong civil society.
  • The benefits of independence could percolate down to masses.
  • He reached out to the historically marginalized and ignored sections of the society:
    • Untouchables
    • Women
    • Peasants
    • Labourers
    • Students

Futuristic Ideas About Self-Sufficient Villages Would Lead to

  • Villages becoming small units of production.
  • Using machinery which are labour facilitating and not labour replacing.
  • Protection of the artisan economy and dying of traditional handicrafts.
    • Potential to create a world market.
    • Revival of the agriculture and allied activities (agro-based and other non-farm activities) to generate livelihoods.
  • Generation of economic activities.
    • Not dependent on land.
    • Yet provide livelihoods.
  • Due to seasonal unemployment in agriculture check on village out migration.
  • Lessening of ecological impact on environment due to overutilization of resources.
  • Utilization of local specificities in terms of resources and traditional knowledge.
  • Self – sufficiency in terms of power through renewable sources and water through its own waterworks (science and technology serve in the villages) .
  • Lessening of the development divide and contrasts between the villages and cities.

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