Prime Minister Narendra Modi has introduced Atmanirbhar Bharat Abhiyan(ABA) in his fifth address to the country. The goal of this ‘Self-Reliant India Mission’ is to introduce a truly unique economic package that can provide relief measures throughout all nation’s sectors.

The declared package is expected to be 10% of India’s GDP. At the same time, since Covid-19 it is a crucial help for all companies.

The relief packages declared with the cumulative sum of whooping Rs.20 lakh crore in order to restore economic strength following the pandemic. Minister of Finance, Nirmala Sitaraman, talked about the fiscal policies and relief measures that fall under this program.

With the ongoing economic implications, the ABA strategy ensures that no sector is unaffected by the revival, particularly in the core of the economy, MSMEs.

Who are eligible for Atmanirbhar Bharat Abhiyan

This Abhiyan set out a simple Micro, Small, and Medium Enterprise (MSME) program. Such companies employ nearly 40 percent of all Indian workers. Therefore, the new ABA policies greatly support all the owners, farmers, and employees who are part of the Indian MSMEs.

This will also include the businesses of production and services, but not restricted to the industries, plants, and management based on machinery. Importantly, the scheme involves even stressed enterprises.

Thus, with the new changes, the MSMEs are now enjoying the benefits and increasing in number. Below are the five main takeaways from ABA’s elaboration of relaxation steps.


The government has updated MSME defination and its concept that will offer better support and advantages. The MSMEs were previously only specified on the basis of the investments.

In comparison, they will now be represented as a composite matter of both investment and turnover considerations.

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The variations set out in the table below.


Extension of Emergency Credit Line for MSME

The Government is providing Rs.3Lakh crores as extra funding to launch all post-pandemic activities. It is an unconditional collateral-free loan given to MSMEs with a 4-year term, along with a 12-month moratorium on the principal.

No guarantee premium is charged on extra collateral and there is 100 percent loan credit provided by the government via banks. Approximately 45Lakh business units in India are expected to benefit, and the scheme will be open until 31 October 2020.

Debt Value to NPA or Stressed MSMEs

Atma-Nirbhar Bharat Abhiyan supports MSMEs with extra Rs.20000 crores loans, that are either classified as NPA or under stress. A partial credit guarantee is provided to the banks with the Rs.4000 crores taking into consideration the valuables given to the Micro and Small Enterprises Credit Guarantee Fund Trust (CGTMSE). Banks are required to provide this support for the equity provided to the companies as infused capital.

Equity Infusions

The government is providing equity financing for future growth under the implemented reform program called “Fund of Funds.” The Mother Fund and Daughter Funds are leveraged for MSMEs with the pooled sum of Rs.10000 crore. This gives businesses the ability to report them on the stock exchange

Global Tenders Dissolved

By implementing adjustments to the General Financial Rules, the Government has excluded up to Rs.200 crores from the Global tender. This strategy is now one of the key agenda under ABA as a step to encourage Make-India and also to save Indian projects from international competitors