{"id":237156,"date":"2023-04-10T20:54:57","date_gmt":"2023-04-10T15:24:57","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=237156"},"modified":"2023-04-13T13:09:44","modified_gmt":"2023-04-13T07:39:44","slug":"pradhan-mantri-mudra-yojana-credit-saturation-for-livelihoods","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/pradhan-mantri-mudra-yojana-credit-saturation-for-livelihoods\/","title":{"rendered":"Pradhan Mantri Mudra Yojana: Credit saturation for livelihoods"},"content":{"rendered":"\n

Source<\/strong>: The post is based on the article\u00a0\u201cPradhan Mantri Mudra Yojana: Credit saturation for livelihoods<\/strong>\u201d published in Live Mint <\/strong>on\u00a010th<\/sup> April 2023<\/strong>.<\/p>\n

Syllabus: GS 2 \u2013 Government Policies & Interventions in Various Sectors<\/strong><\/p>\n

Relevance: <\/strong>About <\/strong>Pradhan Mantri Mudra Yojana<\/p>\n

News<\/strong>: Pradhan Mantri Mudra Yojana (PMMY) has completed eight years. The article analyzes the scheme and provides its achievements.<\/p>\n

About <\/strong>Pradhan Mantri Mudra Yojana<\/strong><\/a> (PMMY)<\/strong><\/h2>\n

It is one of the flagship schemes of the Union government to encourage self- employment<\/strong>. The scheme targets micro and own-account enterprises<\/strong> that are mostly engaged in manufacturing, processing, trading and services.<\/p>\n

These units were largely self-financed or relied on moneylenders because the country’s formal architecture was unable to reach out to them and meet their financial requirements.<\/p>\n

Hence, the PMMY was launched to bridge the gap between a large unbanked sector and formal lenders.<\/strong><\/p>\n

The scope of the scheme has widened with the time. For example,<\/strong> initially it covered income-generating activity only in the sectors of manufacturing, trading and services.<\/p>\n

However, since 2016-17,<\/strong> activities allied with agriculture and their support services promoting livelihoods<\/strong> have been brought under its ambit.<\/p>\n

Read More: <\/strong>Reserve Bank flags rising bad assets from Mudra loans<\/strong><\/a><\/p>\n

What has been the social impact of PMMY?<\/strong><\/h2>\n

On Social Groups:<\/strong> The PMMY has benefitted all segments of Indian society such as General, SC\/STs and OBCs. There has been an increase in the participation of OBCs and SCs in availing the loans.<\/strong><\/p>\n

On Women:<\/strong> The scheme has given impetus to women\u2019s entrepreneurship. Disbursements to women entrepreneurs registered an average growth of 23% in the scheme\u2019s first four years.\u00a0In 2022, it surpassed its pre-covid level, registering a robust growth of 28%.<\/p>\n

On Minority Communities:<\/strong> The scheme has been able to cater to the requirements of minorities. Loans to members of minority groups touched an all-time high in 2022<\/strong>, with their overall share at 10%. Shishu and Kishore loans accounted for 85% of total cumulative disbursement.<\/p>\n

How has the scheme performed across different states?<\/strong><\/h2>\n

One of the objectives of India\u2019s growth policy has been to bridge the divide between the thriving western and lagging eastern parts of the country.\u00a0As per a report, there has been a significant dispersion of the loan amount across states.<\/p>\n

For example,<\/strong> states such as Uttar Pradesh, Odisha and Bihar<\/strong> have recorded all-round gains from the PMMY. West Bengal and Tripura<\/strong> have also seen a rise in their total share, indicating an eastward flow of beneficiaries.<\/p>\n

Developed regions such as the national capital region, Maharashtra, Karnataka and Goa<\/strong> have seen their shares decline, even though they dominate the scheme in absolute terms.<\/p>\n

What has been the overall performance of PMMY?<\/strong><\/h2>\n

As per a survey, the scheme had helped in generating 11.2 million net additional jobs during the period 2015 to 2018.<\/strong><\/p>\n

Data as on 24 March 2023 puts the scheme\u2019s cumulative disburse amount at \u20b922.65 trillion.\u00a0The share of Shishu loans is the highest, at 40%,<\/strong> suggesting that the PMMY has largely supported first-time entrepreneurs.<\/p>\n

What can be the way ahead?<\/strong><\/h2>\n

It is crucial that PMMY reap the benefits of 5G technology and e-commerce with popularization of Mudra cards<\/strong>.<\/p>\n

Encouraging the registration and formalization of own-account enterprises could be another way of taking this scheme to new levels.<\/p>\n

\"\"<\/p>\n

Source: Mint<\/strong><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Source: The post is based on the article\u00a0\u201cPradhan Mantri Mudra Yojana: Credit saturation for livelihoods\u201d published in Live Mint on\u00a010th April 2023. Syllabus: GS 2 \u2013 Government Policies & Interventions in Various Sectors Relevance: About Pradhan Mantri Mudra Yojana News: Pradhan Mantri Mudra Yojana (PMMY) has completed eight years. The article analyzes the scheme and… Continue reading Pradhan Mantri Mudra Yojana: Credit saturation for livelihoods<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[212,10501,3192],"class_list":["post-237156","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-2","tag-live-mint","tag-pradhan-mantri-mudra-yojana-pmmy","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/237156","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=237156"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/237156\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=237156"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=237156"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=237156"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}