The document discusses how India's Atmanirbhar Bharat initiative is helping small businesses and startups in tier 2 cities. It provides examples of how businesses have adapted during the pandemic by becoming self-reliant and developing new products like sanitizers and masks. The initiative aims to support street vendors through affordable loans. Online marketplaces have also helped small businesses expand. The MSME sector plays a key role in achieving Atmanirbhar Bharat through contributing to the economy and creating jobs across India. Government policies aim to strengthen MSMEs to help revive the economy.

1. https://www.entrepreneurindia.co/blog-
description/8974/atmanirbhar+bharat+abhiyan+(self-
reliant+india+mission)
https://www.forbesindia.com/article/weschool/innovation-
entrepreneurship-and-an-atmanirbhar-bharat/65611/1
https://www.businessworld.in/article/Atma-Nirbhar-Bharat-
And-Other-NEP-2020-Highlights/30-07-2021-398676/
Boost for small businesses! How PM Narendra Modi's Atma
Nirbhar Bharat initiative is helping tier 2 city startups
With Covid-19, many businesses had to stop their ventures, and later left on no other option than being “atma-nirbhar”.
While there was an era when one business coordinated with another and the chain continued with making India a hub of business.
Nevertheless, cities to cities began connecting with one another till we could see an economic rise in the nation. But with Covid-19,
many businesses had to stop their ventures, and later left on no other option than being “atma-nirbhar”.
"Surely, this lockdown has given a hit to many businesses, but some have also considered this as an opportunity, because there is no
other option left than doing the most for filling the pockets to survive. Amongst this, the notion for being independent yet working out on
the business ideas has become successful among businesses to an extent. Here are a few examples for it to relate. Health and
sanitization have become very important in the past two years. Considering this, many vendors have also started business for sanitizers
and masks as it has become an essential commodity. So, apart from Dettol and lifebuoy which were the prominent brands for sanitizers,
many people began manufacturing and selling their own after the shortage of sanitizers across the nation. Somehow it gave a hike to
their business entities.
"The idea for elaborating businesses began with online buying and selling of products. Since moving out became a crime, online
sources got a hike in their business. For this, brands began joining popular online sites like Amazon, Flipkart, Myntra etc. These online
portals have given rise to many small ventures as they could resell in a way that could not be done with retail outlets. Secondly, many
online manufacturing sites too got their boost after their online hike in the market,
"The initiative of atma nirbhar abhiyan has also benefitted in many ways. Government had initiated several policies, including which is
Rs. 5,000 Crores credit facility for street vendors. These credits would be available on affordable loans with an initial capital loan of
minimum Rs. 10,000. The scheme will cover both rural and urban areas. The idea is to benefit upto 50 lakh vendors with initiating a
credit flow of Rs. 5,000 crores across the nation. With online boost, liberal bank loans and development of e-commerce market flow,
people can definitely get their poise within these hard times. Talking about city to city growth, the online market is extended to a wide
range across the country. Therefore, B2B as well as B2C can be relied on when it comes to city to city affiliation. For this, courier
services are still liberal to make it easy for people to buy and businesses to grow,"
AATMAMIRBHAR BHARAT: HOW MSMES AND SMALL BUSINESSES CAN HELP TO ACHIEVE THIS?
Read more at: https://yourstory.com/smbstory/aatmamirbhar-bharat-msmes-small-businesses
The global pandemic brought about a sluggish period for the country’s economy. However, in order to ensure its revival, Prime Minister
Narendra Modi announced various initiatives, including an incentive package of Rs 20 lakh crore as a part of the Atmanirbhar Bharat
scheme.
This was done with an aim to expedite reformations across sectors including MSMEs, labourers, middle-class population, etc.
The present landscape of Indian MSMEs Indian MSMEs have always treaded on the traditional route, catering to domestic markets via
the D2C path or by being a part of the value chain of B2B giants. However, with the ever-evolving customers' needs and preferences,
they are increasingly making efforts to cope with industry dynamics by coming up with innovations and customisations in their offerings.
As reported by IBEF, the number of registered MSMEs grew to 2.5 million units in 2020 due to the launch of the Udyog Aadhaar
Memorandum Policy. Presently, there are approximately 6.3 crore MSMEs in the country as per IBEF’s data. The industry body also

2. states in its data that the Micro Small and Medium Enterprises contribute 29 percent towards the nation’s GDP via both its national and
international trades.
The sector has played a major role in boosting the socio-economic development of the country. It has gained prominence over the years
due to its significant contribution to the nation's Gross Domestic Product value. Furthermore, the sector is flourishing in the semi-urban
and rural areas of the country as well.
MSMEs helping the Aatmanirbhar Bharat objective As per the PM, a self-reliant India will stand primarily on five major values —
economy, infrastructure, system, dynamic demography, and demand. MSMEs and small businesses in our country can contribute
majorly to making India aatmanirbhar by standing on all these five pillars and forming a robust foundation. Once this will be achieved,
reaching the destination of Aatmanirbhar Bharat won’t be far.
The MSME sector is indeed the growth engine of the nation. It is one of the dynamic sectors and has been identified as the bedrock for
economic regrowth by the Indian government. Strengthening the segment, on one hand, would further boost the country’s economy and
employment market. On the other hand, this process will help reduce the issues of migrating unskilled, skilled, and professionals to
metro cities.
Though the prospects with the campaign look promising, the road ahead is not easy. With limited resources and stringent government
rules and regulations, Make In India is certainly not a cakewalk. As a country, we need to integrate responsibility in the sheer DNA of
manufacturing. The need of the hour is to focus on innovation and find ways to create more in less. Such empowering initiatives have
the power to create ample job opportunities and growth for the development of the nation, though factors like environmental stability and
scarcity of resources are still there as roadblocks.
Pertinent to mention, the government needs to take the steps to empower MSMEs in order to make Aatmanirbhar Bharat come true.
Government policies should be created to ease out the entire process for the manufacturers. The purchase guidelines should be aligned
well with the industry requirements.
An ecosystem should be created with industry specific clusters to address specific requirements of different segments. Government
should be generous with the easy and cost-effective raw material availability for the local manufacturers. This will not only boost the
MSME economy but also help to challenge the dominancy of multinational brands. India certainly looks forward towards an encouraging
direction as adding to the Aatmanirbhar Bharat ongoing campaign, doubling of the budget allocation for the MSMEs in FY22 along with
other supportive and encouraging measures will give a major boost to the sector. Initiatives like these will further benefit the MSMEs
and will pave the way for the long-term sustainability and growth of the market in India.
Summing up
The government’s initiatives are paving the way for strong growth of the MSME sector and will also help Aatmanrbhar and vocal for
local campaigns gain popularity at the global levels as well. In order to achieve the long-term vision of reviving the nation's economy, we
first need to help MSMEs succeed.
For this, we would have to consider the three key attributes of MSME success- availability of skilled labour in MSME clusters, financial
stability as well as market competitiveness of products to achieve both import substitutions as well as exports.
If appropriate measures are taken and relevant initiatives are introduced, MSMEs can witness bolstered growth. In turn, they could play
a pivotal role in progressing the country’s economy and also in making the nation and its citizen self-reliant in the times to come.
Shift in focus
India’s privatisation drive in 1991 saw the emergence and rise of many large-scale private enterprises, and the country relied on them
for its growth. The MSME segment, largely ignored until then, saw a significant impetus in 2006 with the implementation of the Micro,
Small, and Medium Enterprises Development (MSMED) Act. These enterprises, primarily engaged in producing, processing, and
preserving goods and commodities, were and continue to be the growth driver of the economy. Focus on MSMEs has translated into
the growth of India’s cottage, khadi, village, and coir industries.
The Indian government has shown immense support in strengthening the sector through various initiatives, such as “Make in India,”
“Digital India,” and “Vocal for Local”. These initiatives are designed to ease investment, encourage innovation, develop skills, increase
employment opportunities, and construct a feasible ecosystem for the sector. The nation also celebrates August 30 as the National
Small Industry Day to promote awareness and build support.
Economic impact of MSMEs
The MSME sector has a massive impact on the global economy. Goods and services produced by it fulfil the needs of both the
domestic and international markets. It provides jobs to millions of people and enjoys numerous advantages over large-scale enterprises.
Low investment needs, flexible operations, and cheap labour give it the agility and scalability needed to survive in rough economic
conditions. The sector also works in tandem with ministries, governments, and concerned stakeholders to uplift rural and suburban
areas. It helps reduce regional imbalances and ensures an equitable national income and wealth distribution.
Government policies and initiatives

3. The government has been focusing on the growth and development of the MSME sector. Several schemes were created, expanded, or
updated to aid the small-scale industries in the run-up to the Amrit Mahotsav celebration. For example, the existing Prime Minister’s
Employment Generation Program (PMEGP) and Mudra Units have been expanded to provide financial assistance to MSMEs. The
Credit Guarantee Scheme for Micro and Small Enterprises is another scheme that encourages first-generation entrepreneurs by
facilitating loan guarantee support for collateral-free/unguaranteed loans. These schemes are not just limited to providing credit to
MSMEs; they also support them in other areas of entrepreneurship. The Procurement and Marketing Support (PMS) scheme helps
existing entrepreneurs with new market access. The micro and small enterprises cluster development program (MSE-CDP) resolves
fundamental issues like technology upgrades, skills access to markets, creation and modernisation of infrastructure facilities, etc.
Lastly, the entrepreneurship and skill development program (ESDP) was launched to support new businesses, build capacity for
existing ones, and build an entrepreneurial culture in the country.
Future prospects of small industries
India at 75 is an entirely different beast with a hunger for growth, high aspirations, and capabilities to not just accomplish but exceed its
own expectations. These capabilities extend down to the grassroots, and the MSME sector is embracing this change wholeheartedly.
Today, the sector comprises around 30 million units employing over 70 million people. They manufacture over 8,000 products and
contribute about 45% to India’s manufacturing output and about 40% to direct and indirect exports.
The MSME sector is already the second largest employment generator in the country after agriculture. What this sector needs to grow is
the reduction of red tape, simplified fiscal policies, and a transparent and supportive business ecosystem.
All of these are being created right now. India has been steadily climbing the ease of doing business rankings. The government’s
fiscal policies are improving credit availability for the sector, and digital adoption is creating a transparent and supportive business
ecosystem. With a focus on Atmanirbhar Bharat, the MSME sector has nowhere to go but up.