Page 24 - IMDR JOURNAL 2020-21

IMDR’s Journal of Management Development and Research 2020-21

of entrepreneurship development is an important Phase-III: Agriculture
aspect of the economy. It aids for both existing Phase-IV: New Horizons of Growth
entrepreneurs as well as aspiring ones to develop and Phase-V: Government Reforms and Enablers
manage a successful venture. (Source: https://www.india.gov.in/spotlight/
building-atmanirbhar-bharat-overcoming-covid-19)
Aatma Nirbhar Bharat Campaign: The various government reforms that will help to
Aatma Nirbhar Bharat campaign- a post pandemic boost the entrepreneurial opportunities are:
financial package was announced by prime minister
to boost up the economy and make the country Policy Highlights
self- reliant. and to mitigate the negative impact Privatization of Public Sector Enterprise (PSEs):
of COVID-19 -19 pandemic on the economy. The A new PSE policy has been announced with plans
government issued the economic package of Rs. to privatize PSEs, except the ones functioning in
20 lakh crores on 12th May, 2020. Subsequently, certain strategic sectors which will be notified by the
two more Aatma Nirbhar Bharat packages were government. In strategic sectors, at least one PSE
announced on 12 October and 12 November 2020, will remain, but private sector will also be allowed.
bringing the total economic stimulus to ₹29.87 lakh To minimize wasteful administrative costs, number
crore. The aim is to make the country and its citizens of enterprises in strategic sectors will ordinarily be
independent and self-reliant in all senses. The five only one to four; others will be privatized/ merged/
pillars of Aatma Nirbhar Bharat are Economy, brought under holding companies.
Infrastructure, System, Vibrant Demography and
Demand. Due to the pandemic and strict lockdowns Collateral free loans for businesses: All
imposed by the government, there was a huge decline businesses (including MSMEs) will be provided
in the international trade. The Country was facing with collateral free automatic loans of up to three
the shortage of goods that were imported from lakh crore rupees. MSMEs can borrow up to 20%
several countries. Hence, this later on came as an of their entire outstanding credit as on February
opportunity for the country to produce such goods 29, 2020 from banks and Non-Banking Financial
within the country and become the global suppliers of Companies (NBFCs). Borrowers with up to Rs 25
such goods. Government mentioned 12 sectors, viz., crore outstanding and Rs 100 crore turnover will
auto components, textile, industrial machineries, be eligible for such loans and can avail the scheme
food processing, electronics, agro-chemicals, organic till October 31, 2020. Interest on the loan will be
farming, aluminum and copper, leather and shoes, capped and 100% credit guarantee on principal and
masks and sanitizers have been identified to give interest will be given to banks and NBFCs.
more focus in order to become global suppliers. The
Prime Minister had also urged people to adopt Made Schemes for NBFCs: A Special Liquidity Scheme
in India products to benefit domestic businesses and was announced under which Rs 30,000 crore of
that “every Indian must become vocal for local”, investment will be made by the government in
thus creating more entrepreneurial opportunities for both primary and secondary market transactions
the budding entrepreneurs of the nation. in investment grade debt paper of Non-Banking
Financial Companies (NBFCs)/Housing Finance
Entrepreneurial Opportunities with special Companies (HFCs)/Micro Finance Institutions
reference to Aatma Nirbhar Bharat Campaign: (MFIs). The central government will provide 100%
The traditional avenues classified into guarantee for these securities. The existing Partial
Manufacturing, Trading, Agriculture and further Credit Guarantee Scheme (PCGS) will be extended
leading to Services have always been the potential to partially safeguard NBFCs against borrowings of
avenues. Now with the campaign in place and the such entities (such as primary issuance of bonds or
additional push from the government has created commercial papers (liability side of balance sheets)).
a further wave. The Five phases of Aatma Nirbhar The first 20% of loss will be borne by the central
Bharat campaign are stated below: government. The PCGS scheme will facilitate
Phase-I: Businesses including MSMEs liquidity worth Rs 45,000 Crores for NBFCs.
Phase-II: Poor, including migrants and farmers

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