Dr Sunil Bhardwaj
Aatmanirbhar campaign announced by Prime Minister Narendra Modi, to address the basic issue of abysmally low market demand and economic slowdown induced by Covid-19 crisis. The main thrust of the programme is to boost growth and stimulate demand by undertaking reforms and increasing liquidity in the market. The government has envisioned the Aatmanirbhar Bharat campaign to make India self-reliant and resilient during both normal and crisis times. It does not mean isolation of Indian economy from the rest of the world or going back to license and permit Raj, rather all efforts need to be focused on efficiency and efficacy of the Indian enterprises and the government. The program is keen on resolving supply chain issues for making the country self-sufficient, resilient and sustainable by reducing dependence on imports, building domestic supply chains, and promoting the use of local resources and brands, which can help India achieve higher growth targets in the times to come.
Covid-19 crisis has demonstrated that our domestic market is unable to respond to the huge demand for face masks, sanitisers, PPE kits and other protective equipment, due to the disruption of the global supply chain. The slogan ‘Vocal for Local’ carries a wider and holistic perspective, if interpreted in the context of the Prime Minister’s speech in which he said that all global brands of today were local brands at a point of time. India is blessed with vast natural resources and the local people have mastered the skills to judicially use these resources to earn their livelihoods, viz. Sitalpati Mat in Goalpara (Assam), Phad Paintings in Shahpura (Rajasthan), Kharad craft in Kukma (Gujarat) and Chamba Rumal in Chamba (Himachal Pradesh), Glass Bangles in Firozabad (Uttar Pradesh) and the list can go on and on. Even in the union territory of Jammu and Kashmir, we find numerous products which enjoy competitive advantage but remained limited to local markets. Local products of Jammu and Kashmir like Kalarri of Udhampur, Paintings of Basoli, Rajmah of Bhaderwah, Handicrafts and Saffron of Kashmir, Pickles of Jammu have a potential to emerge as global brands if promoted enthusiastically. Broadly speaking, self-reliance implies the identification of such sectors and to boost their manufacturing and marketing capabilities. In the beginning, these ventures may have less efficiency but will be more reliable during emergency times like war, economic slowdown, health crisis etc.
Let me recall David Ricardo, who argued in the ‘Theory of Comparative Advantage’ that a nation should produce only those goods, in which it has comparative cost advantage or efficiency. But in the present scenario, in order to choose between efficiency and reliability, later is the obvious choice to make country resilient to sudden shocks. Many countries around the world have gained the competitive advantage of producing sophisticated products by dint of their hard work, commitment and government’s support over a period of time, viz. the Swiss watches, the German cars, the Chinese electronics, the Italian wines, the Japanese technology etc. Quite recently, India has achieved self-reliance in manufacturing of mask and PPE kits, which has happened in less than two months. Such transformations are required in all the sectors of the economy.
The over-dependence on China for the imports of Active Pharmaceutical Ingredients (APIs) has to be reduced to make the pharmaceutical industry aatmanirbhar. It is the right time for the government to think of making imports substitution and export promotion as a national priority, especially when the disruption of the global supply chain can deprive the country of critical products and inputs. Import substitution and export promotion are two sides of the same coin, which implies developing domestic capabilities that invariably suit our self-reliant campaign.
A robust, quality, reliable, sustainable and resilient infrastructure is a ‘national identity’ and a prerequisite for the country’s economic prosperity. Such a thrust on infrastructure building requires the commitment of huge capital and an effective longterm strategy. Lack of sufficient investments in infrastructure is not a recent phenomenon in India, besides the problem of poor operation and maintenance, which has caused much damage to the productivity and competitiveness of the economy. In order to become a USD 10 trillion economy by 2032, India needs to invest 7 to 8 per cent of its GDP on infrastructure which amounts to approximately USD 200 billion per annum. But, due to constraints of funds and cumbersome process of land acquisition, payment of compensation and environmental clearance, the country is able to spend only USD 100 to 110 billion annually, leaving a deficit of dollar 90 billion per annum. The huge funding gap needs to be managed through innovative funding strategies and by roping in private investments including FDIs. Investment in infrastructure has a very high correlation with the country’s gross domestic product (GDP) and will not only create backward and forward employment but also provide a fresh impetus to the ailing manufacturing and service sector in the long-run. We have a lesson to learn from China, which has emerged as a world leader in infrastructure by completely transforming its manufacturing sector multi-folds in the last two decades.
The provision of technology-based solutions for the problems is critical for self-reliant Bharat. Digital technology makes the delivery of public goods faster and governance efficient, by bringing in the element of transparency and accountability. Aarogya Setu app and JAM Trinity (Jan Dhan-Aadhar-Mobile) has been acting as cornerstones in fighting the Covid-19 pandemic, besides assisting in economic recovery process. The Aarogya Setu app, JAM Trinity and Kisan credit cards present appropriate examples of effective technology adoption at a mass scale. Through the Jan Dhan scheme, the Government has been able to transfer Rs.28,256 crores to more than 31 crore beneficiaries across the country, under Prime Minister Garib Kalyan Yojana. Similarly, the Government has been successful in transferring Rs.15,841 crores to 7.92 crore farmers, under Pradhan Mantri Kisan Samman Nidhi ( PM-KISAN) scheme, since 24 March 2020 to abate the impact the Covid-19 pandemic. The adoption of technology-based solutions will not only enhance the efficiency of the delivery system but also bypass cumbersome paperwork, hierarchies and incidents of corruption which should have no place in a progressive nation.
India is the world’s biggest democracy and vibrant demography, which if harnessed properly, can act as the strongest pillar of the Aatmanirbhar Bharat. As per World Bank, India’s working-age population is growing by approximately 1.3 million every month during the years 2015-2025, which necessitates the creation of millions of jobs every year to reap the benefits of being a young nation. An ignited mind can play a critical role in providing exposure, education and the market-ready skills to their family members and create new ventures, which has many tangible and intangible socio-economic outcomes. The main responsibility of the government is to create a skill development ecosystem in the country. The programmes like Pradhan Mantri Kaushal Vikas Yojana (PMKVY), Skills Acquisition and Knowledge Awareness for Livelihood (SANKALP) and the Skills Strengthening for Industrial Value Enhancement (STRIVE) are the steps in a right direction. Economists believe that tremendous opportunities and potential lie at the base of the pyramid (BoP), where 80% of the Indian population belongs and without their participation, Aatmanirbhar Bharat will remain a distant dream for India. A focused, target-based bottom-up approach can act as a potent strategy to exploit the full potential of the demographic dividend for achieving Aatmanirbhar Bharat Mission.
(The author is a faculty of Business Studies University of Jammu)
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