Prime Minister Mudra Yojana and Economic Development of India by Ajay Gautam
A large part of the Indian population lives in the rural areas of the nation and is excluded from the financial services available in the urban areas. Many people in India do not have access to farmland despite India being an agriculture-dominant country. Owing to limited job opportunities, most of the people are left to their own devices to earn a livelihood. Moreover, many such people belong to scheduled castes, scheduled tribes and other backward classes, who lack proper education, training and financial support. They initiate a micro enterprise or any retail trading activity, which has the potential to expand and grow. If this potential could be harnessed with some guidance, financial support, and training, it could be a huge milestone in the economic growth of the country.
The Honourable Prime Minister Shri Narendra Modi recognized the potential of the under-privileged section of the society and launched this Mudra scheme. This scheme has the potential to be a game changer; it can boost a whole new generation of entrepreneurs who can succeed. Pradhan Mantri Mudra Yojana or Prime Minister Mudra scheme aims to provide financial support to micro/small entrepreneurs by meeting their credit aspirations and by offering an opportunity to grow and expand business. In the Union Budget of 2015-16, the Mudra scheme was proposed by the Finance Minister of India. The primary goal is to “fund the unfunded”, banks are required to provide hassle-free loans under this scheme as per the requirements of the borrower. The end users of this scheme are entrepreneurs in rural hinterlands, women entrepreneurs, micro manufacturers, artisans, small-scale businessmen and tradesmen. This study is primarily focused on analyzing the pros and cons of this scheme in order to analyze its impact on the economic development of the country. The methodology of the study will be based on empirical reviews that are based on the available literature related to the Prime Minister Mudra Scheme. It will focus on understanding the usefulness of the scheme to the citizens. (Read Full Paper)