The Atmanirbhar Bharat Abhiyan, introduced amid the COVID‐19 crisis, has become a cornerstone of India’s strategy to achieve self‐reliance by mobilizing domestic capabilities and transforming critical sectors. This paper presents a comprehensive study of the challenges and opportunities inherent in the Atmanirbhar Bharat initiative. Drawing on secondary data from government announcements, academic literature, and media reports, the study adopts a descriptive research approach to examine the initiative’s multifaceted dimensions-from economic stimulus and infrastructure development to policy reforms and social empowerment. The analysis focuses on five pillars-economy, infrastructure, system, demography, and demand-and evaluates the potential impacts on MSMEs, agriculture, healthcare, defence, and digital transformation. While the initiative offers significant opportunities for enhancing local production, reducing import dependency, and catalysing employment, several challenges remain. These include issues related to supply chain disruptions, regulatory bottlenecks, the need for skilling the workforce, and the risk of uneven growth across sectors. The paper concludes by proposing strategic measures to overcome these hurdles and outlines the implications for future policymaking aimed at creating a resilient and globally competitive Indian economy.