Self-reliant India Programme

Last updated: August 18, 2022

In his address to the nation on May 12, 2020, the Prime Minister expressed India’s resolve to turn the COVID-19 pandemic crisis into an opportunity to strive for self-reliance. For this, the Government introduced the Self-reliant India Programme (Atmanirbhar Bharat Abhiyan) to be built around five pillars of Economy, Infrastructure, Systems, Vibrant Demography, and Demand.

An extensive set of reform and relief measures is being enforced as part of the programme that will help boost equitable growth in post-Coronavirus India. Improved liberalisation, policy amendments, relaxed regulations, financial support, infrastructure investment, skill development, etc, are expected to attract larger counts of foreign investors to India build a future-ready global economy.

Summary of Stimulus Measures Announced by the Government of India till date

Sl. Item Rs. billion
1. Pradhan Mantri Garib Kalyan Package (PMGKP) + 1,928.00
2. Atmanirbhar Bharat Abhiyaan 1.0 11,026.50
3. PMGKP Anna Yojana – extension of 5 months from Jul – Nov 829.11
4. Atmanirbhar Bharat Abhiyaan 2.0 (12th October) 730.00
5. Atmanirbhar Bharat Abhiyaan 3.0 2,650.80
6. RBI measures announced till 31st Oct 2020 12,712.00
Total 29,876.41

Self Reliant India Programme Stimulus Package 1.0

On May 12 2020, the Government of India introduced a stimulus package worth nearly Rs.21 trillion (US$277 billion), equivalent to around 10% of India’s GDP, to aid the people worst hit by the Coronavirus (COVID-19) pandemic. Built around five pillars of Economy, Infrastructure, Systems, Vibrant Demography, and Demand, the package was aimed at and opening up new avenues of trade, investment, and employment in the post-pandemic economy.

The building of a strong and resilient nation can only happen with the active cooperation of India’s global partners. To that end, the Central Government has set up an “Empowered Group of Secretaries (EGoS) and Project Development Cells (PDCs)” in all Ministries and Departments to attract fresh investments into India.

The stimulus package 1.0 was announced in five parts. For more details, please refer:
Atmanirbhar Bharat Abhiyan Part 1: Businesses, including MSMEs Link
Atmanirbhar Bharat Abhiyan Part 2: Poor, including migrants and farmers Link
Atmanirbhar Bharat Abhiyan Part 3: Agriculture Link
Atmanirbhar Bharat Abhiyan Part 4: New Horizons of Growth Link
Atmanirbhar Bharat Abhiyan Part 5: Government Reforms and Enablers Link

Self Reliant India Programme Stimulus Package 2.0

Announced on 12th Oct 2020, the second part of the package included measures worth Rs 730 billion to stimulate consumer spending in the economy in an effort to fight the slowdown due to COVID-19 pandemic following the lockdown.

  • Cash payment and leave encashment in lieu of one LTC during 2018-21 according to entitlement
  • Special Festival Advance Scheme revived as a one-time measure for both Gazetted and non-Gazetted employees
  • Special interest free 50-year loans to States for capital expenditure for Rs. 120 billion
  • Additional budget of Rs. 250 billion, in addition to Rs. 4.13 trillion given in Union Budget 2020, provided for Capital Expenditure

For more details, please refer here

Self Reliant India Programme Stimulus Package 3.0

The third stimulus package, amounting to Rs. 2.65 trillion, announced by the Finance Minister on November 12, 2020, has been designed to increase employment opportunities, support multiple sectors through Production-Linked Incentives (PLIs) as well as extension of the Emergency Credit Line Guarantee Scheme (ECLGS) to non-MSMEs as well.
For more details, please click here.

PLI Schemes are a cornerstone of the Government’s push for achieving a Self-Reliant India (Atmanirbhar Bharat).The objective is to make domestic manufacturing globally competitive and to create global champions in manufacturing. The scheme provides an incentive of 4% to 6% on incremental sales (over base year) of goods manufactured in India and covered under target segments, to eligible companies, for a period of five years subsequent to the base year. 

In March 2020, the cabinet approved Production Linked Incentive (PLI) Schemes in the following sectors: 

  • Large Scale Electronics Manufacturing (mobile phone and specified electronic components) – Rs. 409.95 billion
  • Manufacturing of critical Key Starting Materials, Drug Intermediates and Active Pharmaceutical Ingredients – Rs. 69.40 billion
  • Manufacturing of Medical Devices – Rs. 34.20 billion

The PLI Scheme for Large Scale Electronics Manufacturing (mobile phone and specified electronic components) was notified on 1 April, 2020 (Link). 16 applications from global and domestic mobile phone and electronic components manufacturing companies have been approved. The scheme is expected to lead to total production worth Rs. 11.5 trillion, and create 300,000 direct jobs, over the next five years. The companies approved under the PLI Scheme have made investments of approximately Rs. 30 billion, since 1 April 2020.

The Department of Pharmaceuticals issued detailed guidelines for the PLI Schemes for Key Starting Materials, Drug Intermediates and Active Pharmaceutical Ingredients; and Medical Devices on 27 July 2020, and the Revised Guidelines on 29 October 2020.  

PLI Scheme for Key Starting Materials, Drug Intermediates and Active Pharmaceutical Ingredients: In the first round, 215 applications made by 83 pharmaceutical manufacturers were received of which 42 applications with committed investment of Rs. 43.47 billion and expected employment generation of around 8,792 persons were approved. Since a few slots remained unfilled for certain products, applications were invited again, and in the second round, further 24 applications were received. In the 9th Meeting of the Empowered Committee held on 25 November 2021, the applications of 8 companies were approved bringing the total approvals to 50, with committed investment of Rs 44.98 billion and employment generation of about 10,743. More details. On 27th January 2022, the ministry issued an invitation for applications for vacant slots (10 APIs), with an extended timeline for filling of application upto 31 March 2022.

Under the PLI Scheme for Medical Devices, 28 applications were received from 23 applicants in the first round. Out of these, 13 applications with committed investment of Rs.7.99 billion were approved with expected employment generation of around 3,812 persons. Since a few slots remained unfilled for certain products, applications were invited again, and a total 14 applications were received. In the 9th Meeting of the Empowered Committee held on 25 November 2021, applications of 8 companies have been approved, bringing the total approved applications to 21, with committed investment of Rs 10.59 billion and employment generation of about 6,411. More details .

Further, under the Atmanirbhar Bharat 3.0 stimulus package, announced in November 2020, the Government has included ten more Champion Sectors for coverage under the PLI Scheme to boost the global competitiveness of domestic manufacturing.

Sector  Estimated Expenditure on

new PLI Schemes (Rs. billion)

Advance Chemistry Cell Battery  181.00
Electronic/Technology Products  50.00
Automobiles & Auto Components  570.42
Pharmaceuticals Drugs  150.00
Telecom & Networking Products  121.95
Textile Products  106.83
Food Products  109.00
High Efficiency Solar PV Modules  45.00
White Goods (ACs & LED)  62.38
Specialty Steel  63.22
Total  1,459.80

PLI Scheme for an additional sector, Drones and Drone Components, was approved by the Union Cabinet in September 2021.  

The above PLI Schemes have been already been approved/operationalised by the Government of India, as per details below:

  • PLI Scheme for Telecom and Networking Products: The scheme, approved on 17 February 2021, is effective from 1st April 2021, with an outlay of Rs. 121.95 billion. The operational guidelines for the scheme were issued by Department of Telecom on 3rd June 2021, and registration process for the scheme commenced on 4 June 2021. 

As per the press release dated 14 October 2021 by Ministry of Communications, a total of 31 companies comprising 16 MSMEs and 15 Non-MSMEs (8 domestic and 7 global companies), received approval under the Scheme. The scheme is expected to result in Incremental production of around Rs. 1.82 trillion and attract investment of around Rs. 33.45 billion in the sector over 4 years, boost to local R&D and create additional employment for more than 40,000 people. More details.

With the objective to build a strong ecosystem for 5G, the guidelines for the Scheme have been amended with effect from 1st April 2022 to introduce Design- led Manufacturing with additional 1% incentive. The extended last date for submission of applications under the amended scheme is 25th August 2022. More details

  • PLI scheme for high-efficiency solar PV modules, with a committed investment of Rs. 45 billion is expected to spur investments of over Rs. 140 billion and build a manufacturing capacity of 10 GW. The Ministry of New & Renewable Energy (MNRE) has issued the Scheme Guidelines on 28 April 2021, and IREDA has been appointed as the implementing agency for the scheme. More details.
  • PLI Scheme for Electronic/Technology Products (IT Hardware), was notified on 3 March 2021. A total of 19 global and domestic companies applied under the scheme, of which 14 eligible applicants have been approved by Ministry of Electonics and IT. Over the next 4 years, the scheme is expected to lead to total production of about Rs 1,600 billion, of which 37% (Rs. 600 billion) will be contributed by exports. The scheme will bring additional investment in electronics manufacturing to the tune of INR 25.17 billion, while generating over 36,000 direct employment opportunities along with additional indirect employment of nearly 3 times the direct employment. For details please refer here
  • PLI Scheme for Pharmaceutical drugs was notified on 3 March 2021, with an approved outlay of Rs. 150 billion. The government issued Operational Guidelines for the scheme on 1 June 2021. The scheme has estimated the export generation potential of Rs 1.96 trillion over a period of 6 years in all the three categories of products under the scheme which includes high value products as well. A total of 239 applications were received for 36 products spread across the 4 target segments in two rounds of applications. Out of these, 49 applications have been approved by the Government till 29 March 2022. More details
  • Production Linked Incentive Scheme for the Food Processing Industry: After the Union Cabinet approval on 31 March 2021, the Ministry of Food Processing Industries (MoFPI) issued detailed operational scheme guidelines and launched an online portal for the scheme on 3 May 2021. The scheme has an outlay of Rs. 109 billion to support creation of global food manufacturing champions commensurate with India’s natural resource endowment and support Indian brands of food products in the international markets. More information.  In all, 91 companies had responded to the MoFPI invitation for Expression of Interest (EOI), of which 60 investment proposals have been approved on 5 November 2021. In addition 12 SMEs have been selected for incentivizing Innovative/ organic products, and 71 applicants shall be provided support for branding and marketing abroad to incentivize the emergence of strong Indian brands.
  • PLI scheme for White Goods (Air-conditioners, LED lights): Rs. 62.38 billion scheme to incentivize the domestic manufacturing of components of White Goods (Air conditioners and LED lights), was approved by the cabinet on 7 April 2021. After the scheme was notified on 16 April 2021, Scheme guidelines were issued on 4 June 2021.  Of the 52 applications received (31 for AC components and 21 for LED components), 42 applicants with committed investment of Rs 46.14 billion were selected as beneficiaries under the scheme (26 for Air Conditioner manufacturing and 16 for LED Lights manufacturing). Over the next 5 years, the Scheme is expected to lead to net incremental production of around Rs. 812.54 billion and direct employment for about 44,000 people. Further, in view of the high level of interest displayed by the industry, the government reopened the application window for the scheme. Of the 19 companies that applied under the second round of PLI Scheme for White Goods, 15 companies (6 for AC components and 9 for LED components) have been selected, with committed investment of Rs 13.68 billion, and projected production worth Rs 255.83 billion over next 5 years, creating additional direct employment for about 4,000 persons.Overall, 61 companies have been approved under the PLI Scheme for White Goods to bring investments of Rs 66.32 billion, production worth Rs 1.23 trillion and create 46,368 additional direct employment. Further, the domestic value addition is expected to grow from the current 15-20% to 75-80%. More details
  • PLI Scheme for Advanced Chemistry Cell Battery – The PLI Scheme ‘National Programme on Advanced Chemistry Cell (ACC) Battery Storage’ was approved by the Cabinet on 12 May 2021. The scheme aims to achieve manufacturing capacity of 50 GWh of ACC and 5 GWh of “Niche” ACC with an outlay of Rs. 181 billion. After due bidding process, 4 companies were selected for incentive under the scheme and allotment made for 50 GWh of battery capacity to the successful bidders, who have committed direct investment of around Rs. 450 billion in ACC Battery storage manufacturing projects. Of these, 3 companies have signed the Program Agreement under the scheme. More details  
  • PLI Scheme for Specialty Steel: The Union Cabinet approved the Rs 63.22 billion scheme on 22 July 2021. Guidelines for the Scheme were notified on 20th Oct 2021, by Ministry of Steel. The scheme is expected to attract an additional investment of about Rs 450 billion during the five-year scheme period and enhance India’s manufacturing capacity of such grades to 42 million tonne per annum (MTPA) from around 18 MTPA now. The scheme will also provide employment to about 5,25,000 people of which 68,000 will be direct employment. On 25 October 2021, Ministry of Steel organized a day long Seminar to provide a platform to the stakeholders for brainstorming key features of the PLI scheme, to leverage the opportunities and resolve the challenges that the industry may foresee. The application window for the scheme has been extended up to 31 July 2022. Meanwhile, it is reported that the Government has already received 10 applications and 58 registrations up to 31 May 2022.

 

  • PLI Scheme for Textiles: The Government of India, on 8 September 2021, approved the PLI Scheme for Textiles with a budgetary outlay of Rs. 106.83 billion. The scheme will promote production of high value MMF Fabric, Garments and Technical Textiles in India. The scheme, notified on 27 September 2021, will benefit manufacturing companies registered in India, undertaking processing and operation activities in their own factory premises. A total of 61 applicants  have been approved under the scheme, out of 67 applications received. Total investment expected from applicants is Rs. 190.77 billion with a projected turnover of Rs. 1849.17 billion, and employment of 240,134. More details
  • PLI Scheme for Auto Industry and Drone Industry : The Government of India, on 15 September 2021, approved the PLI Scheme for Automobile Industry and Drone Industry with a budgetary outlay of Rs. 260.58 billion.The PLI Scheme for the Auto sector will lead to fresh investment of over Rs. 425 billion, incremental production of over Rs. 2.3 trillion and will create additional employment opportunities of over 750,000 jobs. Together with the already launched PLI scheme for Advanced Chemistry Cell and Faster Adaption of Manufacturing of Electric Vehicles (FAME) (Rs. 100 billion), the scheme will enable India to leapfrog from traditional fossil fuel based automobile transportation system to environmentally cleaner, sustainable, advanced and more efficient Electric Vehicles based system. A total of 115 companies applied for availaing the incentives under the Scheme, at the close of 60 day application window on 9 January 2022. Of these, 95 applicants have been approved under this PLI scheme – 20 applicants for Champion OEM Incentive scheme, and 75 applicants under Component Champion incentive scheme. The proposed investment from approved applicants is Rs. 748.50 billion against the target estimate of Rs. 425 billion over a period of five years. More details
  • The PLI Scheme for the Drones and Drone components industry, notified on 30th September 2021, addresses the strategic, tactical and operational uses of this revolutionary technology. The Central Government is providing an incentive of Rs 1.20 billion under the scheme, which will, over a period of three years, lead to investments worth Rs. 50 billion, increase in eligible sales of Rs. 15 billion crore and create about 10,000 jobs. A provisional list of 23 PLI beneficiaries was released on 6th July 2022. The beneficiaries include 12 drone manufacturers and 11 drone component manufacturers. More details

The Minister of Commerce & Industry has said that there has been a very positive industry feedback about the various the PLI schemes in various sectors, and that these schemes have induced post-Covid industrial and economic recovery.

Ministry of Electronics and Information technology has announced the Design Linked Incentive (DLI) Scheme in December 2021, to enable the domestic industry involved in semiconductor design, to not only move up in value-chain but also strengthen the semiconductor chip design ecosystem in the country. CDAC is responsible for implementation of the DLI Scheme as Nodal Agency.

The scheme has three components – Chip Design infrastructure support, Product Design Linked Incentive and Deployment Linked Incentive,adopting a graded and pre-emptive approach towards achieving import substitution & value addition in strategic & societal sectors. More details

The Union of Cabinet of India has set up the Empowered Group of Secretaries (EGoS) to provide investment support and facilitation to global investors. The Empowered Group will also coordinate with various departments and ministries to ensure timely clearances. For more details, click here.

Project Development Cells (PDCs) in various ministries and departments of state and central governments, to develop investible projects with complete Detailed Project Reports including details of land which will be in turn picked by various investors.  PDCs will also identify various issues that need to be settled to attract investments. These issues will be in turn put up to EGoS for further action. For more details, click here.

‘Ease of Doing Business’ reforms

Department for Promotion of Industry and Internal Trade (DPIIT), since 2014, has been releasing Business Reform Action Plan (BRAP) for steering business reforms to create an investor-friendly ecosystem across the country. So far 4 editions of the assessment of States/UTs have been released, and the latest edition Business Reforms Action Plan (BRAP), 2020 was released by the Minister of Finance on 30th June 2022. BRAP 2020 includes 301 reform points that cover 15 business regulatory areas such as Access to Information, Single Window System, Labour, Environment, Sectoral Reforms and other reforms spanning across the lifecycle of a typical business. More details

Also, as part of the Self Reliant India package, the Government had announced a number of measures to enhance ease-of-doing-business. Several Bills were passed during the Parliament session in September 2020 in this regard.

Corporate Law measures to boost Measures for Ease of Doing Business 

  • Integrated Web based Company Incorporation – Simplified Proforma for Incorporating Company Electronically Plus (SPICe +) 
  • Databank of Independent Directors launched 
  • Withdrawal of more than 14,000 prosecutions under the Companies Act, 2013.
  • Rationalization of Related Party Transaction related provisions 
  • Reduced compliance burden under various provisions of the Companies Act,2013 

For more details on Ease of Doing Business reforms, please refer here:

The Companies (Amendment) Bill 2020

  • to allow public companies to directly list certain prescribed classes of securities in foreign jurisdictions
  • to decriminalise certain offences under the Companies Act, 2013, in case of defaults which can be determined objectively and which otherwise lack any element of fraud or do not involve large public interest.

The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Bill, 2020

  • to extend compliance-related timelines for taxpayers while offering significant relief to foreign investors.

The Insolvency and Bankruptcy Code (Second Amendment) Bill, 2020

(replacing the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2020, introduced in response to the Covid-19 pandemic, which had created uncertainty and stress for businesses for reasons beyond their control.)

  • no initiation of insolvency proceedings, by either the corporate debtor or any of its creditors, for defaults arising during the six months from March 25, 2020 (extendable up to one year).

In addition, in May 2020 the Government had raised the threshold for initiating insolvency proceedings to Rs 10 million (from the present threshold of Rs 100,000) to protect MSMEs from an adverse fallout of the pandemic and lockdown. A special insolvency framework for MSMEs is under preparation, to be notified under section 240A of the IBC.

The Factoring Regulation (Amendment) Bill 2020

  • To help Micro, Small and Medium Enterprises (MSMEs) by providing additional avenues for getting credit facility.

Industrial Relations Code Bill, 2020, Code on Social Security Bill, 2020, and Occupational Safety, Health and Working Conditions Code Bill, 2020

  • to increase the ambit of social security benefits, by including gig workers and inter-state migrant workers.
  • to provide greater flexibility to employers through an increased threshold of 300 workers, for closure, lay off and retrenchment without government permission.

The Government has launched the DGFTTrade Facilitation’ Mobile App, for promoting ease of doing business and providing quick access of information to importers/exporters. More information.

With an aim to further improve ease of doing business, on 28 July 2021, the Government launched the Secured Logistics Document Exchange along with a Calculator for Green House Gas Emissions. The digital initiative is expected to further improve ease of doing business through improved logistics efficiency, reduced logistics cost, and promoting multi-modality and sustainability. More information

Setting up of an Investment Clearance Cell (ICC) was announced in the Budget 2020-21 with the objective of making India self reliant and enhancing ease of doing buisness. The Ministry of Commerce and Industry launched the  ICC / National Single Window System for Investors and Businesses (www.nsws.gov.in) on 22 September 2021 to provide ‘End to End’ facilitation, and bring transparency, accountability & responsiveness in the ecosystem. Currently, approvals of 32 Ministries/ Departments of the Central Government, and Single Window Systems  of 14 States and 1 Union Territory have been on-boarded on the NSWS Portal. More details

Launching the Ease of Logistics’ portal on 27 September 2021, the Minister for Commerce and Industry said it will bring in transparency and further facilitate Ease of Doing Business.

A big exercise is being carried out by Central Ministries & States/UTs to reduce compliance burden and the aim of this exercise is to simplify, decriminalize & remove redundant laws. More than 22,000 compliances have been reduced by Union Ministries, States & UTs so far under the initiative and about 13,000 compliances simplified while more than 1,200 processes have been digitized. Further, that during last fee years 103 offences have been decriminalized and 327 redundant provisions/laws removed. More details.

Other measures for enhancing Ease of Doing Business

  1. Exemption from Integrated Goods & Service Tax and Compensation Cess under Advance Authorizations (AA)/ EPCG, EOU scheme extended up to 31st March 2022.
  2. IT systems of DGFT revamped with API based message exchange with community partners on export promotion schemes.
  3. The common eCoO portal has been extended for issuing non-preferential certificates of origin also.
  4. Information on Foreign Trade Policy Updates, Import/Export Policy, Export/Import Statistics, status of applications, 24×7 virtual assistance has been made available through the DGFT Trade Facilitation App that was launched in April 2021.
  5. More than 25,000 compliances have been reduced the government, to ease the compliance burden and to promote Ease of Living and Ease of Doing Business.

 

 

During the Budget Speech on 1 February 2021, the Finance Minister announced the policy of strategic disinvestment of public sector enterprisesproviding a clear roadmap for disinvestment in all non-strategic and strategic sectors. 

Further, the Finance Minister also stated that Monetizing operating public infrastructure assets is a very important financing option for new infrastructure construction. 

On 23 August 2021, the Finance Minister launched the ‘National Monetisation Pipeline (NMP Volumes 1 & 2)’, developed by NITI Aayog, in consultation with infrastructure line ministries. NMP estimates aggregate monetisation potential of Rs 6.0 trillion through core assets of the Central Government, over a four-year period, from FY 2022 to FY 2025. More details

On 8 October 2021, the Government of India approved the sale of 100% equity shareholding of Government of India in Air India (along with equity shareholding of Air India in AIXL and AISATS) to Talace Pvt Ltd, a wholly owned subsidiary of M/s Tata Sons Pvt. Ltd. More details.

In May 2022, the government of India has sold 3.5% stake in Life Insurance Corporation (LIC), through IPO route, to raise a total of Rs 205.57 billion from primary investors. The issue was subscribed nearly 3 times on the last day of bidding. The Minority Stake sale was facilitated through amendment of FDI policy. Link

On 4 July 2022, Government announced another successful completion of strategic disinvestment of Neelachal Ispat Nigam Limited at an enterprise valuation of Rs. 121 billion.

The strategic transfer of ownership of Air India has since been completed in January 2022. Further, as announced by the Finance Minister during the Budget 2022-23 speech on 1 February 2022, a strategic partner for Neelanchal Ispat Nigam Limited has been selected, and public issue of LIC Ltd. is expected shortly.

On 9 March 2022, the Union Cabinet approved the setting up of National Land Monetization Corporation (NLMC) as a Special Purpose Vehicle (SPV) for undertaking surplus land monetization. NLMC will undertake monetization of surplus land and building assets of Central Public Sector Enterprises (CPSEs) and other Government agencies. More details 

Transactions worth Rs. 1 trillion have been completed under the National Monetisation Pipeline (NMP) in FY 2021-22, surpassing the programme’s first-year target of Rs. 880 billion, Niti Aayog CEO Amitabh Kant said on Tuesday. The sectors which contributed in a big way to the asset monetisation include roads, power and mining of coal and minerals.