Gist of Yojana December 2021: Atmanirbhar Bharat

Yojana Magazine is an important source of material for the UPSC exam. The monthly magazine provides details of major government schemes and programmes in various domains. Moreover, coming from the government, it is an authentic source of information for the UPSC Exam. Here, we provide the Gist of Yojana, exclusively for the IAS Exam.
TABLE OF CONTENTS

1. GI Tagging of Rural Products
2. Capacity Building of PSUs
3. Farm to Fork
4. Har Ghar Jal
5. Self Reliance in Energy Sector
6. Recharging Economy
7. Reviving MSMEs
8. Direct to Consumer Model
9. Women Entrepreneurship
10. Police Reforms

Chapter 1: GI Tagging of Rural Products

Introduction:

A Geographical Indication (GI) tag is essentially an assurance that the product is from that particular location. GI Tag provides increased competitiveness, productivity, and national reputation in the global market.

What are Geographical Indications (GIs)?

  • A geographical indication (GI) is a label given to products with a specific geographical origin and characteristics or a reputation associated with that origin.
  • GI is a sort of IPR that identifies a product as being from the territory of a given country, or a specific area or place inside that territory.

Know more about Geographical Indications in the link.

What are the Issues with GI Tagging?

  1. Policy Challenges: Tariffs, export limitations, export taxes, anti-dumping duties, and import licensing are all used extensively in India’s trade policy. India is under increasing global pressure to streamline its export promotion initiatives.
  2. Defining Geographical Boundaries: Determining the exact geographical borders of a product, particularly in the case of non-agricultural items is difficult.
  3. Prone to Misuse: The misuse of GI tagging occurs when certain unlicensed merchants, dealers, or producers generate duplication and engage in unlawful selling, therefore misleading and misrepresenting the quality and goodwill of the approved goods in the market.
  4. Competition amongst States: Since the majority of the tags have been issued to official entities rather than representative groups of the producers, state governments appear to be the most affected by the GI craze.
  5. Adding to Cost of Products: The added cost of a GI mark is problematic in a country that is extremely price-conscious.
  6. Technical Challenges: Technical problems include the complexities of the registration procedure in numerous foreign countries, the high costs of hiring a watchdog agency to gather information on theft, and the financial resources required to pursue legal fights, among others.

Efforts by the Indian Government

Scheme Description
GI Tagline The Department for Promotion of Industry and Internal Trade (DPIIT) issued a tagline “Invaluable Treasure of Incredible India” and a common tri-colour logo for GI certified products.
GI of Goods (Regulation and Protection) Act In India, the Geographical Indications (GI) of Goods (Regulation and Protection) Act was passed in 1999 to facilitate the registration and protection of intellectual property in relation to goods.
GrapeNet GrapeNet by APEDA is an internet-based residue traceability software system, for monitoring fresh grapes exported from India to the European Union.
HortiNet HortiNet is an integrated traceability system developed by APEDA for providing Internet-based electronic services to the stakeholders for facilitating farm registration, testing and certification of grapes.

Way Forward:

  1. A GI tag must be issued after a thorough examination of historical and empirical evidence in the event of a controversy regarding the place of origin.
  2. Foodstuffs with GI tags should be limited to those that have traditionally been produced solely in a given place and are not the same when produced elsewhere.
  3. The government should examine the issues and make changes to defective orders that contradict the core principles of global commerce.
  4. In addition, effective advertising techniques are required to popularize GI-tagged items and capitalize on their commercial potential.
  5. Also, GI tags should not be given to generic food recipes because they may be copied anywhere in the world.
  6. Building capacity and understanding of GIs among all stakeholders, including consumers, is also an ongoing requirement.

Chapter 2: Capacity Building of PSUs

Introduction:

PSUs (public sector undertakings) are critical players in India’s economic recovery. These enterprises provide services that benefit the entire community.

What is a Public Sector Undertaking (PSU)?

  • In India, a state-owned company is known as a public sector undertaking or PSU.
  • The national or state government owns 51 percent or more of the shares in a PSU corporation.

Need for Capacity Building of PSUs:

  1. PSUs play a multifaceted role in India, laying a solid platform for industrial growth. These firms have contributed to economic prosperity by focusing on infrastructure development and expansion.
  2. Many people have found work as a result of these businesses. PSUs want to boost exports while lowering imports.
  3. Modern procedures and capacity building in the form of functional competencies, knowledge, and attitudes will encourage a culture of efficiency and competitiveness.

What are the challenges faced by the PSUs in India?

  1. Inefficient Management: The majority of PSUs do not engage in effective management. Managers are hired based on a set of certain requirements. As a result, the managers of such businesses have failed to clarify their employees’ roles and obligations.
  2. Low Capacity Utilization: Most public sector firms established in India during the plan period were unable to employ their complete capacity, which had been built at a significant cost.
  3. Faulty Manpower Planning: The majority of public-sector enterprises have not planned for their workforce. As a result, in a lot of circumstances, personnel exceed real requirements.
  4. Labour Problem: Labour issues or poor industrial relations have also harmed public-sector enterprises. Indiscipline among workers has been one of the causes of such firms’ low performance.
  5. Over-Capitalisation: It is frequently asserted that most public-sector initiatives share a common feature, namely, over-capitalisation. In other words, most public-sector initiatives have an inefficient input-output ratio.
  6. Political Interference: In most situations, political considerations, rather than business considerations, affect project placement selections. PSUs are being built in certain states without any cost-benefit analysis in order to appease political authorities.

Recommendations for Capacity Building of PSUs

  1. Collaborate Facilities: There is a need to bring about collaboration between training facilities of various PSUs and create a pool of shared resources. It will create cross-synergization and develop a vibrant pool of common resources to be shared.
  2. Centres of Excellence: Resource training should be institutionalized and two or more training institutes should be designated as “Centres of Excellence”.
  3. Geographic Clusters: Identify geographic clusters where several training institutes from separate fields are located.
  4. Thematic Clusters: There are different institutes offering similar core competencies. Tie-ups between such centres could help create Thematic Centres of Excellence.
  5. Ethics and Moral Values: PSUs need to be built as agents of socio-economic growth in society. Training inputs can help in developing a sense of responsibility towards nation-building.

Conclusion:

PSUs and banks need to collaborate on capacity building, share resources, identify and strengthen the core competencies. This will optimize resource utilization and have benefits of specialization.

Chapter 3: Farm to Fork

What is a Farm to Fork Model?

  • ‘Farm to fork’ is a model that tries to reduce the number of stages between the farmer and the retailer.
  • A farm-to-fork strategy either establishes a logistical chain that is held by the retailer or outsources it to a logistics firm.
  • Small wholesale marketplaces, or mandis, are part of the network, where farmers may come and obtain a decent price for their goods.
  • Production, Post-Harvest Infrastructure (PHI), processing and value addition, distribution, marketing, and consumption are all components of a farm to fork value chain.

Strategies Farmers can adopt for Efficient Farm to Fork Implementation:

  1. Production Phase:
  1. Increase Productivity: NITI Aayog has recommended improving farm productivity by focusing on six broader aspects which are Quality Inputs, Technology, Land Fragmentation, Irrigation & Electricity, Farm Credit, and Crop Insurance.
  2. Proper Implementation of Government Initiatives: Soil health management initiatives, such as the Pradhan Mantri Krishi Sinchayee Yojana (PMKSY), are being implemented with the goal of making agriculture more productive, sustainable, and adopting comprehensive soil health management methods, among other things.
  3. Use of Technology to Empower Farmers: The combination of high-quality certified seeds, neem-coated urea, and bio-stimulants has resulted in a massive increase in yield per hectare and higher nutritional quality of the food.
  4. Effective Use of Irrigation: Irrigation used well at the field level may enhance on-farm water utilisation, minimise water waste, and increase the cultivable area under guaranteed irrigation.
  1. Post-Harvest Phase:
  1. Post Harvest Infrastructure (PHI): There is a lack of provision of post-harvest infrastructure (PHI), resulting in massive losses. Promoting and establishing PHI can decrease post-harvest losses, and improve local and international horticulture commerce.
  2. Reduce Post-Harvest Losses: Minimizing post-harvest losses through value-added goods and an effective value chain can help farmers avoid distress sales while still providing high returns.
  3. Promote Food Processing: To improve India’s manufacturing capacity and exports, the government has introduced the Production Linked Incentive (PLI) Scheme in 13 critical industries, including food processing.
  4. Implement Scientific Methods: Farmers may make educated judgments to employ diverse scientific procedures at the farm level using knowledge-based inputs, and efficient post-harvest management strategies.

Recommendations to Increase the Efficiency of the Farm to Fork Model in India: 

Conclusion:

The farm to fork idea emphasizes the need to not only live with eco-friendly items but also consume food that is fresh and helpful to our health.

Chapter 4: Har Ghar Jal

Jal Jeevan Mission: 

  • The Ministry of Jal Shakti has launched the Jal Jeevan Mission with a goal to provide piped water to every household in India.
  • By 2024, the programme hopes to deliver clean and sufficient water to all rural Indian families via individual household tap connections.
  • The Jal Jeevan Mission’s Har Ghar Nal Se Jal programme is an important component.
  • Jal Jeevan Mission is collaborating with a number of states to deliver drinkable water in sufficient quantities and of required quality on a consistent and long-term basis.

Know more about the Jal Jeevan Mission in the link.

Significance of the Jal Jeevan Mission (JJM)

  1. Collective Ownership and Action:
  • JJM is based on the 73rd Amendment that empowers Gram Panchayats with administrative control of water.
  • JJM is a decentralized demand-driven and community-managed water supply programme.
  • It also plans water source augmentation, greywater treatment and reuse of treated greywater. It also provides tap water supply in quality affected areas.
  1. Boosting Rural Economy
  • The Village Water and Sanitation Committee (VWSC) prepares Village Action Plans (VAPs) which provide 60% total grants to local rural bodies.
  • Village communities became water surplus and this brought ease of living.
  1. Children’s Health and Well-being:
  • Good water quality and potability had helped households keep check on water borne health concerns in rural areas.
  • During COVID-19 pandemic, the need for frequent handwashing was possible due to the availability of tap water supply provided under JJM.
  1. Women Empowerment: 
  • Jal Jeevan Mission has been empowering women of the country by saving their time and efforts which was earlier consumed in covering long distances to fetch drinking water.
  • VWSC gave an opportunity to rural women to become self-reliant or Atma Nirbhar by becoming village water managers.
  • Women played a significant role as custodians of water quality in villages.
  1. Technologically Sound Infrastructure:
  • JJM showcases ongoing sensor-based IoT pilot projects in different villages which show the status of daily water supply in terms of quality, quantity and regularity.
  • Village-level IT support is being provided to monitor everyday water supply along with a public grievance redressal mechanism.

Conclusion: 

JJM flows from a larger philosophy and an integrated approach to water-related issues based on two approaches of the ‘value of water’, and the ‘water footprint’ of human and economic activity.

Chapter 5: Self Reliance in Energy Sector

Introduction:

Self-sufficiency in the energy industry is critical to fulfilling Atmanirbhar Bharat’s aim.

To achieve sustainability, people must be conscious of climate change. Self-sufficiency in the energy industry is critical to fulfilling the goal of Atmanirbhar Bharat.

Renewable Energy in India:

  • In 2021, India is ranked third in the renewable energy country attractive index.
  • The government has set an ambitious goal of achieving 175 GW of renewable energy capacity by the end of 2022, with the goal of increasing to 450 GW by 2030.
  • Renewable energy presently accounts for nearly 24% of the country’s installed power capacity and 11.62 percent of total electricity output.

Renewable Energy Initiatives:

  1. National Solar Mission (NSM): The National Solar Mission (NSM) was founded in 2010 with the goal of making India a global leader in solar energy.
  2. PM-KUSUM: The PM-KUSUM Scheme is a three-part initiative aimed at providing farmers with water and energy security while also increasing their revenue by converting Annadata to Urjadata.
  3. AJAY Scheme: The Ministry of New and Renewable Energy (MNRE) announced the Atal Jyoti Yojana (AJAY) to enlighten dark areas by installing solar street lights.

Hydrogen Energy

  • Hydrogen is becoming a more essential source of energy since it comprises zero carbon and is non-polluting.
  • Hydrogen can be produced commercially from hydrocarbons such as natural gas, oil, and coal using processes such as steam methane reforming and coal gasification.

Hydrogen Energy in India

  • In India, hydrogen is still in its early stages of use in the energy industry.
  • R&D initiatives involving hydrogen production, storage, use, power generation, and transportation applications are being funded by both government and non-government funding bodies.
  • India is taking part in the Mission Innovation Challenge for Clean Hydrogen, with the goal of accelerating the establishment of a global hydrogen market.
  • India is identifying and overcoming significant technological hurdles to gigawatt-scale hydrogen production, distribution, storage, and usage.

National Hydrogen Mission:

  • The National Hydrogen Mission seeks to reduce carbon emissions and enhance renewable energy consumption while aligning India’s efforts with worldwide best practices in technology, policy, and legislation.
  • The National Hydrogen Mission and the green hydrogen industry will help us achieve our climate goals in a big way.
  • Objectives: 
    • To scale up Green Hydrogen production and utilization.
    • To align India’s efforts with global best practices in technology, policy and regulation.
    • To produce low-cost green hydrogen and ammonia for export.

Key Challenges

  • Green hydrogen production is costly, with the electrolyser being the most expensive component.
  • Manufacturing on a larger scale might lower these costs, however, manufacturing capacity is currently constrained due to limited demand.
  • Hydrogen is also a costly fuel to transport.
  • It has enormous promise as a direct substitute for fossil fuels in the transportation industry.

Way Forward:

India may take advantage of increased investment in R&D, capacity growth, suitable laws, and the chance to create demand for Hydrogen energy among its enormous population by taking a measured approach.

Chapter 6: Recharging Economy

Introduction: 

Atmanirbhar Bharat Abhiyaan is a special economic and comprehensive package launched to combat the COVID-19 epidemic in India. The goal is to make the country and its residents self-sufficient in every way.

Highlights of Important Reforms Provided under Atma Nirbhar Bharat Abhiyaan

Support to MSMEs:
  • Emergency Credit Line to Businesses/MSMEs from Banks and NBFCs up to 20% of entire outstanding credit.
  • 100% credit guarantee cover to Banks and NBFCs on principal and interest.
  • Rs 20,000 crores Subordinate Debt for Stressed MSMEs.
  • Rs 50,000 cr. Equity infusion for MSMEs through Fund of Funds.
  • New Definition of MSMEs: Low threshold in MSME definition has created a fear among MSMEs of graduating out of the benefits and hence killing the urge to grow.
  • e-market linkage for MSMEs to be promoted to act as a replacement for trade fairs and exhibitions.
Support to Non-Banking and other Financial Institutes:
  • EPF contribution reduced to 10%: Statutory PF contribution of both employer and employee will be reduced to 10 percent from the existing 12 percent for all establishments covered by EPFO for the next 3 months.
  • Special Liquidity Scheme for NBFCs/HFCs/MFIs: The government will launch a Rs 30,000 crore Special Liquidity Scheme. Under this scheme, the investment will be made in both primary and secondary market transactions in investment-grade debt papers of NBFCs/HFCs/MFIs.
Tax-relates Measures:
  • Issued all the pending income-tax refunds up to ₹5 lakh, immediately benefiting around 14 lakh taxpayers.
  • Implemented “Special Refund and Drawback Disposal Drive” for all pending refund and drawback claims.
  • All pending refunds to charitable trusts and noncorporate businesses & professions including proprietorship, partnership, LLP and co-operatives shall be issued immediately.
  • The period of Vivad se Vishwas Scheme for making payment without additional amount will be extended to 31st December 2020.
Support to migrants, farmers and poor: Pradhan Mantri Garib Kalyan Package (1)

  • Rs. 1.70 Lakh Crore relief package for the poor to help them fight the battle against Corona Virus.
  • Insurance cover of Rs 50 Lakh per health worker.
  • Poor people given the benefit of 5 kg wheat or rice, 1 kg pulses for each household for free every month for the next 3 months.
  • 20 crore women Jan Dhan account holders get Rs 500 per month for the next 3 months
  • Increase in MNREGA wage to Rs 202 a day from Rs 182 to benefit 13.62 crore families
  • Ex-gratia of Rs 1,000 to 3 crore poor senior citizens, poor widows and poor Divyang.

Pradhan Mantri Garib Kalyan Package (2)

  • Front-loaded Rs 2,000 paid to farmers under existing PM-KISAN.
  • Building and Construction Workers Welfare Fund allowed to be used to provide relief to workers.
  • 24% of monthly wages to be credited into their PF accounts for next three months for wage-earners below Rs 15,000 p.m. in businesses having less than 100 workers.
  • Five crore workers registered under Employee Provident Fund to get a non-refundable advance of 75% of the amount or three months of the wages, whichever is lower, from their accounts.
  • District Mineral Fund (DMF) to be used for supplementing and augmenting facilities of medical testing, screening etc.
Ease of Doing Business  (EoDB)
  • Corporate law measures to boost EoDB: Companies Act violations that involve minor technical and procedural defaults will be decriminalized.
  • The amendments will help in de-clogging the criminal courts and National Company Law Tribunal.
  • Direct listing of securities by Indian public companies in permissible foreign jurisdictions.
  • Private companies which list non-convertible debentures (NCDs) on stock exchanges are not to be regarded as listed companies.
  • Power to create additional/specialized benches for NCLAT
  • Lower penalties for all defaults for Small Companies, One-person Companies, Producer Companies & Start-Ups.
IBC-related measures
  • The minimum threshold to initiate insolvency proceedings increased from INR 1 Lakh to INR 1 crore.
  • Special insolvency resolution framework to be notified for MSMEs under Section 240A of IBC.
  • Depending upon the pandemic situation, fresh initiation of insolvency proceedings will be suspended for 1 year.
  • COVID 19 related debt to be excluded from the definition of “default” under IBC.

Conclusion: 

AatmaNirbhar Bharat became India’s overarching national strategy, vision, and goal for growth and development, all rolled into one. Our youthful workforce has the potential to turn current problems into possibilities and become strong pillars of ‘Atmanirbhar Bharat.’

Chapter 7: Reviving MSMEs

Introduction: 

During the Covid-19 pandemic, numerous MSME enterprises participated in their own unique ways to help society. They began mass-producing sanitisers, masks, PPE kits, and other Covid-essentials, establishing India as ‘Atmanirbhar’.

MSME Sector in India:

  • Over 11 crore people work in the MSME (Micro, Small, and Medium Enterprises) sector.
  • It accounts for 29% of India’s GDP and 48% of the country’s total exports.

Initiatives:

  1. Credit Guarantee Scheme (CGS): It enhances the credit delivery system and enables credit flow to the MSE sector, allowing the unserved, underserved, and poor to access money.
  2. Production Linked Incentive Scheme: It’s a programme that attempts to reward businesses for increased sales of items made in domestic facilities. PLIs might take the form of tax breaks, reduced import and export duties, or simpler land purchase arrangements.
  3. Startup India Seed fund Scheme: The programme intends to give financial support to companies in the early phases of development, such as proof of concept, prototyping, product testing, market entrance, and commercialization. The Seed Fund will be distributed to qualifying entrepreneurs through incubators throughout India.

Why Reviving SME & MSME Sectors Should Be Top Priority?

  1. MSMEs have been having a difficult time recovering from the shocks of demonetisation, GST, the recession, and the COVID waves.
  2. There is a scarcity of technology-based industrial activity in the MSME sector.
  3. These industries can’t compete because they don’t invest enough in research and development and don’t use technology.
  4. The state governments along with MSMEs face many issues as a result of the unexpected increase in the number of jobless workers following the lockdown.
  5. The compliance structure is very complicated, and there is an excessive amount of paperwork required.
  6. The majority of operators in the MSME sectors lack the necessary documents. They don’t even have the financial means to hire professionals.

Way Forward: 

  • The government should subsidize existing technologies so that MSME players have access to these resources. This will help them save money while also improving the quality of their products and increasing their profitability.
  • Larger manufacturers and industrial firms employ MSME sectors as suppliers. As a result, the government should invest in additional back-end services to assist them to enhance their performance.
  • According to the UK Sinha Committee, the MSME sector should reduce paperwork by making PAN a Unique Enterprise Identifier (UEI).
  • The MSME sector’s contribution is predicted to be multiplied by increased competitiveness, gradual strengthening, and quick change of the ecosystem.
  • The enterprise value chain must be strengthened if India wants to become a global value chain leader.
  • The reverse migration problem will be solved via skill mapping and revitalising MSME clusters.

Chapter 8: Direct to Consumer Model

What is the Direct-To-Consumer Model?

  • Direct-to-consumer (D2C) businesses make and transport their goods directly to customers, bypassing traditional retailers and other intermediaries.
  • This enables D2C businesses to sell their products at cheaper prices while maintaining complete control over the manufacturing, marketing, and distribution of their goods.

Significant Aspects of the Direct-to-Consumer Model

  1. When sellers have the capacity to make instantaneous changes in the customer interaction setting, the D2C model makes it easier to differentiate products.
  2. The direct-to-consumer (D2C) approach allows firms to experiment with distribution strategies and adapt them to changing societal and economic demands.
  3. The D2C model makes it simple to liquidate a firm in the event of failure, giving entrepreneurs a relatively quick exit.
  4. The direct-to-consumer (D2C) approach has decreased the cost side of the equation for businesses, allowing them to generate rapid profits.

Conclusion:

Atmanirbhar Bharat has ushered in a more individual-level shift in the Indian economy, with consumer and producer preferences shifting one by one, resulting in a bigger economic phenomenon known as the Indian Direct to Consumer revolution.

Chapter 9: Women Entrepreneurship

Introduction:

Women make a substantial contribution to entrepreneurship and economic growth by creating new employment and boosting GDP, which has a favourable influence on poverty reduction and social exclusion.

Women’s Entrepreneurship Opportunity:

  1. Women entrepreneurs are pioneering new markets and solving unmet customer demands. Platforms for beauty items, women-focused business schools, and so forth are examples.
  2. Investing in women creates economic and social success by allowing a gradual social transition away from high reproduction, low education, and bad health and toward more deliberate reproductive choices, higher education, and better health for families.
  3. Women are more likely to increase the workforce when they have more financial freedom, autonomy, and authority as entrepreneurs.

Challenges faced by Women Entrepreneurship in India:

  1. Due to a lack of investor equity and the complexity of negotiating complicated financial products, unequal access to finance exists.
  2. Due to restricted involvement in official and informal networks, as well as the absence of co-founders, there is a lack of professional support.
  3. Many women entrepreneurs are put off by the banking system’s cumbersome and time-consuming paperwork and protracted approval timeframes.
  4. Scaling is hampered by a lack of organized knowledge and abilities.
  5. Lack of established out-station incubators and other organized avenues for skill development.
  6. Struggle with excessive risk aversion and poor self-confidence as a result of a lack of expertise, cash, or other income-generating options.
  7. Another barrier to women’s work or business is limited mobility due to the caring obligations in the family and safety concerns.

Way Forward:

  1. Level the playing field for high-impact entrepreneurs.
  2. Aspire to go beyond creating employment and income for themselves.
  3. Business ideas have been market-tested and proven to be scalable.
  4. Encourage entry by demonstrating better outcomes for self and family, simplifying access to opportunities and skills.
  5. Targeted interventions to create more vibrant, financially viable, attractive and hence aspirational agri-business models.
  6. Integrated policy framework for accelerating entrepreneurship amongst women, with an emphatic inclusion of semi-urban and rural India.

Chapter 10: Police Reforms

Introduction:

Police reforms strive to change police organisations’ principles, culture, rules, and procedures so that officers can carry out their tasks while respecting democratic ideals and human rights.

Background of Police Reforms:

  1. “Police” is a State subject in the Seventh Schedule of the Constitution of India.
  2. The 1861 Police Act applies to practically the whole of India. The colonial administration believed that “police service, machinery, and labour conditions must be reasonably consistent across India.”
  3. The Police Commission created by Lord Curzon in 1902 determined that Act V of 1861 did not apply in the provinces of Madras and Bombay, and recommended that it be implemented there as well.
  4. The states enacted their own police regulations, although they mostly followed the structure established by the Central statute.

Why are the Police Reforms needed?

Read more on police reforms in the linked article.

Way Forward:

  1. Division of Duties: Police departments should be organised into several areas, such as homicide, robbery, traffic, cyber, women’s molestation, intelligence, state border customs, coast guards, and combat forces.
  2. Continuous Evaluation: A specific performance criterion should be established, and all employees should be required to take a performance test to see whether they are capable of handling the responsibilities.
  3. Technological Advancement: Innovative methods, such as the use of drones and unmanned aerial vehicles (UAVs) to monitor the whole city, should be employed.
  4. Delinking of Security from Politics: There should be no political interference in security matters.

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