India has embarked on an Atmanirbharta or self-employment mission, and we are aware that the journey cannot be completed if the path does not involve all parts of society – including those considered socially weaker. For years, the country’s growth has been centered on the socially advanced classes and genders, and as it goes on, it is safe to say that the country has recognized the need for inclusivity and collective growth.
What is Stand-Up India?
Movements like Stand-Up India These are the programs that help achieve the mission of sustainable and equitable growth. The program was first launched in 2016 by the Indian government to support and promote Entrepreneurship among women, Scheduled Caste (SC) and Scheduled Tribe (ST). This program was in line with the government’s goal of promoting entrepreneurship in the country in order to strengthen the manufacturing sector for the self-sufficiency goal or Aatmanirbharta mentioned, as well as the goal of achieving inclusive growth through special benefits to the weaker sections . These benefits included facilitating loans between Rs 10 lakh and 1 crore to at least one planned caste or planned tribal borrower and at least one female borrower per bank branch for starting a greenfield business.
What are Greenfield Enterprises?
Greenfield businesses refer to projects that are not constrained by prior work in the sense that there is no need to remodel or demolish an existing structure on the land on which the business is to operate. This company may be in the manufacturing process, Services, agricultural activities or the commercial sector. In the case of non-individual companies, at least 51% of the equity and control shares should be held by an SC or ST or an entrepreneur.
How have the results of this plan been so far?
Even so, the labor force participation of women in the country showed a decline in rural women and a stagnation in the labor force participation rate for urban women in 2020, which is not a good sign of a developing economy like India. While India has become the fifth largest economy in the world, The labor force participation of women has fallen sharply and is now compared to Arab countries.
Women’s participation in the labor force is declining in rural India and low and stagnating in urban India, mainly due to the decline in the agricultural sector. One noticeable reason for this was India’s 2019 unemployment crisis, which implied that most of the country’s women were white-collar workers as opposed to employers and / or business owners. According to a 2019 report by Google and Bain & Company, women have already been hit hardest by India’s unemployment crisis. While the Indian unemployment rate was 7 percent before India closed in March, it was already 18 percent for women. A preliminary study found that Indian women have already lost more jobs than men during the COVID-19 pandemic. This distinction between male and female workers in the workplace and the still stagnating gender pay gap have been one of the main reasons for the stagnation in the labor force participation of women in developing countries. The rate is the lowest in all of South Asian countries where four out of five women do not work in the country. The labor force participation rate for men is four times that of women, which paints a bleak picture of female employment prospects in the country.
What is the latest improvement in the Stand Up India movement?
As a result, earlier this Sunday the Treasury Department announced an extension of the Stand-up India program for the next four years until 2025. “Banks have sanctioned Rs 25,586 billion to approximately 1,14,322 beneficiaries under the Stand-Up India program over the past five years to promote entrepreneurship among women and SC & STs. This program, which has been extended to 2025, includes planned castes or planned tribes and / or entrepreneurs over the age of 18, “the Treasury Department said while speaking about the extension of the program. The expansion is designed to further promote the initiative of women entrepreneurship in 2016 and help them start a business in the commercial, manufacturing and service sectors of both apprentices and willing borrowers. The program, which started on April 5, 2016, benefited 93,094 women entrepreneurs with an outstanding loan of Rs 21,200 billion as of March 23. The extension and increase in funding would also help support those job seekers who became unemployed during the pandemic year, who look for alternative sources of income as the Indian economy heads for a recovery in 2021.
“In the case of non-individual companies, 51 percent of the equity and control shares should be held by either SC or ST and / or entrepreneurs and borrowers should not be in default with a bank / financial institution,” said the Treasury Department. The increase in the allocation and expansion of the program is expected to come at an opportune time, as the country’s growth is expected to be accelerated by experts in the current fiscal year, directly indicating the possibility of meeting increased demand or, ultimately, increasing income through the Increase production in line with the government’s Atmanirbhar initiative, which opens doors to entrepreneurship opportunities. “We could consider picking up growth in India, so it would make sense to have some cyclicals in our portfolio, including industrial cyclicals and to some extent consumer cyclicals, and this is different from what we are seeing in other emerging markets right now. “Said Jonathan Garner, chief equity strategist, Asia and Emerging Markets, Morgan Stanley.