Atmanirbhar Bharat Abhiyan
Prime Minister Narendra Modi in his address to the nation on 12th May 2020 spoke regarding the way to battle with COVID 19. He made an announcement of a stimulating package of Rs 20 Lakh Crore under the Atma Nirbhar Bharat Abhiyan.
Launch of Atmanirbhar Bharat Abhiyan 3.0
- To incentivize job creation, the Government of India has launched Atmanirbhar Rozgar Yojana under Atmanirbhar 3.0. The scheme applies to all the organizations that are registered under Employees Provident Fund.
- Organization. It is effective from October 1, 2020. It is beneficial for those who have lost their jobs in COVID 2019. This scheme will be effective till 30th June 2021.
- A total of 15 measures were taken to help boost the Indian economy along with offer extended guaranteed credit for MSMEs and collateral-free automatic loans for businesses. The government will also be offering Rs.90,000 crore to power distribution companies and state-run power finance companies.
India’s self-reliance will be based on five pillars
- Economy
- Infrastructure
- Technology-driven system
- Vibrant demography
- Demand
Eligibility Criteria to avail of the benefit under this scheme:
- Monthly salary less than Rs 15000
- EPF members with a monthly salary less than Rs 15,000 and exited from the employment from 1 March 2020 to 30th September 2020.
- Gets a job on or after 1 October 2020.
Eligibility of the Organizations to get a subsidy under this scheme:
- Should be EPFO registered organizations that recruit new employees compared to the reference base of employees as of September 2020. A minimum of five new employees if the reference base exceeded 50 employees.
- Any organizations registered with the EPFO after the scheme started will get subsidies for new employees.
- All those organizations who meet the eligibility criteria will get subsidy support from the government for 2 years for newly employed employees on or post-October 01, 2020.
How much will be the subsidy support?
- For organizations with up to 1,000 employees, subsidy support of up to 24% of wages (employee's contribution which is 12% of wages and employer's contribution which is also 12% of wages.
- For organizations with more than 1,000 employees, the subsidy support will be for the employee's EPF contribution which is 12% of the EPF wages.
- The subsidy support will be credited in the EPFO account (UAN) of the eligible new employee who is seeded with Aadhaar.
- More than 95% of all organizations and 65% of all employees in the formal sector will be covered in the category where EPF contributions are provided as subsidy support by the government.
Impact of announcing the Atmanirbhar Abhiyan Package
- By providing the relief package of 20 Lakh Crore as a measure taken by the government to tackle the adverse effects of Corona is the most positive step for the wellbeing of Indian citizens.
- The economic package is almost 10% of India’s current GDP at Rs.200 lakh crore will be aimed at helping the local markets with production along with supply chains.
- The Atmanirbhar Bharat Abhiyan will be focusing on the liquidity and Labour laws benefiting laborers, farmers, land, tax-payers along MSMEs, and the cottage industry.
- Post-COVID 19, almost each of the sectors was struggling to stay afloat with the agriculture sector that includes laborers and farmers. This economic package provides relief to even small businesses to stay stronger under MSME.
The Government of India made it clear with the scheme that the country's economy and its infrastructure will be the two main pillars of helping India become self-reliant. The focus will also be on the understanding of vibrant demographics and the adoption of a technologically driven system.
