Atmanirbhar Bharat Schemes and their State-Level Impact
The Atmanirbhar Bharat package, initially valued at ₹20 lakh crore (approximately 10% of India's GDP at the time), covered five pillars: Economy, Infrastructure, Technology-driven systems, Vibrant Demography, and Demand.
What it is: A direct welfare package primarily focused on food security and financial support for the most vulnerable.
PMGKY: Encompassed various measures like insurance cover for healthcare workers, direct cash transfers (e.g., to Jan Dhan account holders, senior citizens, widows), and free LPG cylinders under Ujjwala scheme.
PMGKAY: Provided free food grains (5 kg per person) and 1 kg of chana (pulses) per family to beneficiaries covered under the National Food Security Act (NFSA). This scheme was crucial during the pandemic and has been extended multiple times, demonstrating its sustained importance as a social safety net. As of July 2025, the PMGKAY is active and providing free food grains to over 80 crore beneficiaries until December 2028, making it the world's largest food security program.
Beneficiaries:
Individuals: Below Poverty Line (BPL) families, Antyodaya Anna Yojana (AAY) households, Priority Households (PHH), women Jan Dhan account holders, senior citizens, widows, migrant workers not covered under NFSA, and healthcare workers.
State Participation & Livelihood Improvement:
State Governments are directly responsible for the identification of beneficiaries (PHH), the procurement and distribution of food grains through the Public Distribution System (PDS) network (Fair Price Shops), and facilitating cash transfers.
Rural & Urban Impact:
Food Security: Ensures basic sustenance for millions, preventing hunger and malnutrition, especially for daily wage earners and migrant laborers in both rural and urban areas who faced income shocks. States actively manage the logistics and last-mile delivery.
Financial Stability: Direct cash transfers provide immediate liquidity for essential needs.
Healthcare Access: Insurance for frontline workers boosts morale and offers financial protection during health crises.
This is the broader package that includes various measures impacting different sectors, with states being key implementers and beneficiaries.
Support for Micro, Small, and Medium Enterprises (MSMEs):
Measures:
Emergency Credit Line Guarantee Scheme (ECLGS): Provided 100% collateral-free automatic loans to MSMEs (and other businesses) with a government guarantee. This was crucial for liquidity and preventing bankruptcies.
Fund of Funds: Equity infusion for MSMEs to help them grow and expand.
Revised MSME Definition: Broadened the criteria for MSME classification, allowing more businesses to avail benefits.
No Global Tenders: For government procurement up to ₹200 crore, promoting domestic MSMEs.
Udyam Registration: Simplified online registration for MSMEs.
Beneficiaries: All registered MSMEs across India.
State Participation & Livelihood Improvement:
States facilitate awareness campaigns for MSMEs, work with banks for loan disbursement, and provide a conducive environment for business growth. State industrial development corporations play a key role.
Rural & Urban Impact: MSMEs are significant employers in both rural and urban areas. These measures safeguarded existing jobs, encouraged new business formation, and facilitated economic recovery, boosting local economies and livelihoods.
Agriculture Infrastructure Fund (AIF):
What it is: A ₹1 lakh crore financing facility for creation of post-harvest management infrastructure and community farming assets. It provides medium- to long-term debt financing with interest subvention (3% for up to ₹2 crore loan) and credit guarantee support.
Beneficiaries: Farmers (individual and collectives), FPOs (Farmer Producer Organizations), PACS (Primary Agricultural Credit Societies), SHGs (Self-Help Groups), entrepreneurs, startups, state agencies, and PPP projects.
State Participation & Livelihood Improvement:
State Agriculture Departments and allied agencies (like state APMCs) are crucial in identifying viable projects, promoting the scheme, and supporting beneficiaries. State and District-level Monitoring Committees oversee implementation.
Rural Impact: Directly benefits farmers by reducing post-harvest losses, improving market access (warehouses, cold storage, processing units), increasing their income, and creating rural employment opportunities. Punjab, for instance, has fully utilized its AIF allocation and even received additional funds for further expansion, showcasing successful state-level implementation.
Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA):
What it is: India's flagship rural employment guarantee program. Under Atmanirbhar Bharat, its allocation was significantly increased (an additional ₹40,000 crore), and efforts were made to enhance job creation.
State Rural Development Departments and Panchayati Raj Institutions are the primary implementers, responsible for job card issuance, demand generation, work allocation, wage disbursement, and social audits.
Rural Impact: Provides a crucial safety net for rural families, especially returning migrant workers, ensuring 100 days of wage employment and creating durable assets (e.g., water conservation structures, rural roads), thereby boosting rural demand and economic activity. States like Rajasthan have been proactive in job generation under MGNREGA.
PM SVANidhi (Pradhan Mantri Street Vendor's Atmanirbhar Nidhi):
What it is: A micro-credit scheme providing collateral-free working capital loans (initially ₹10,000, with subsequent tranches of ₹20,000 and ₹50,000) to street vendors, along with interest subsidy and incentives for digital transactions.
Beneficiaries: Street vendors in urban areas.
State Participation & Livelihood Improvement:
State Urban Local Bodies (ULBs) and Municipal Corporations are central to identifying street vendors, issuing Letters of Recommendation (LoRs), facilitating loan applications, and promoting digital literacy. Banks and MFIs are crucial lending partners.
Urban Impact: Formalizes the urban informal economy, provides financial stability to street vendors, helps them restart/expand businesses post-pandemic, and reduces their dependence on informal moneylenders, thus improving urban livelihoods.
One Nation, One Ration Card (ONORC):
What it is: A technology-driven system enabling portability of ration cards, allowing NFSA beneficiaries to claim subsidized food grains from any Fair Price Shop (FPS) across India using Aadhaar authentication.
Beneficiaries: All NFSA beneficiaries, especially migrant workers and their families.
State Participation & Livelihood Improvement:
State Food and Civil Supplies Departments implemented the necessary ePoS (Electronic Point of Sale) devices at FPSs, linked Aadhaar with ration cards, and managed the backend infrastructure. All 36 States/UTs have successfully implemented ONORC.
Rural & Urban Impact: Revolutionized food security for migrant workers who often move between states for work. It ensures that they are not deprived of their food entitlements due to change of residence, significantly improving the food security and well-being of a highly vulnerable segment of both rural (source) and urban (destination) populations. It also helps in identifying duplicate ration cards and reducing leakages.
Affordable Rental Housing Complexes (ARHCs):
What it is: A sub-scheme under Pradhan Mantri Awas Yojana – Urban (PMAY-U) to provide affordable rental housing to urban migrants/poor. This involves converting existing government-funded houses into ARHCs under PPP mode or encouraging industries/institutions to develop ARHCs on their private land.
State Urban Development Departments and ULBs identify suitable land/buildings, invite bids for PPP, and facilitate the development of rental housing.
Urban Impact: Addresses the housing needs of migrant laborers and the urban poor, providing them with dignity of living, reducing living costs, and improving their quality of life in cities.
Reforms in Agriculture Marketing and Governance:
Measures: Amendments to the Essential Commodities Act, promotion of the Farmers' Produce Trade and Commerce (Promotion & Facilitation) Act (though some of these laws faced repeal later), and the Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act. These were aimed at freeing farmers from restrictive market practices.
Beneficiaries: Farmers.
State Participation & Livelihood Improvement:
States were expected to adapt their agricultural policies and market regulations in line with these reforms. While some reforms faced challenges, the overall intent was to give farmers more choices in selling their produce and engaging in contract farming, potentially improving their income.
How States Facilitate Implementation:
States are not just recipients; they are active partners in the Atmanirbhar Bharat vision. Their role includes:
Policy Adaptation: Aligning state-specific policies and schemes with central guidelines.
Resource Mobilization: Leveraging central funds and allocating their own budgets.
Administrative Machinery: Utilizing district administrations, block-level offices, and local bodies for scheme implementation, outreach, and grievance redressal.
Awareness Campaigns: Informing citizens and businesses about the schemes and eligibility criteria through local languages and media.
Monitoring & Evaluation: Tracking progress, identifying bottlenecks, and reporting to central ministries.
Innovation: Some states have innovated within the framework to suit their unique demographic and economic conditions.
