Prime Minister Narendra Modi on Monday celebrated a landmark moment for India’s entrepreneurial journey as the Pradhan Mantri Mudra Yojana (PMMY) completed ten years since its launch on April 8, 2015. Marking the occasion, PM Modi interacted with beneficiaries of the scheme at his official residence in Delhi, highlighting the growing spirit of self-employment and financial independence in the country.
What is the Mudra Yojana?
The Pradhan Mantri Mudra Yojana is one of India’s most impactful financial inclusion schemes, offering collateral-free loans to non-corporate, non-farm small and micro enterprises. Loans are disbursed under three categories:
- Shishu (up to Rs. 50,000)
- Kishor (Rs. 50,000 to Rs. 5 lakh)
- Tarun (Rs.5 lakh to Rs.10 lakh)
According to government data, over 52 crore loans worth Rs.32.61 lakh crore have been sanctioned in the last decade.
Empowering Entrepreneurs Across India
During his interaction, Prime Minister Modi listened to inspiring stories of small business owners who launched or expanded their ventures using Mudra loans. Many shared how the absence of collateral requirements gave them their first real opportunity for self-employment and job creation within their communities.
Also Read: Breather for Bengal: SC halts CBI probe into posts created to accommodate 25,000 sacked teachers, says HC order untenable
Women Entrepreneurs Lead the Way
A remarkable feature of PMMY’s success has been its impact on women entrepreneurs, who account for nearly 70% of total loan accounts. According to the Finance Ministry:
- The average loan per woman borrower grew at a CAGR of 13%, reaching Rs. 62,679 by FY25
- Their average incremental deposits rose at 14% CAGR, reaching Rs. 95,269
The IMF, in its 2024 report, acknowledged the scheme’s role in driving self-employment and formalisation of businesses, especially for women. It noted that India now has over 2.8 million women-led MSMEs, thanks in part to PMMY.
Expanding Businesses and Creating Jobs
The Mudra Yojana has not only supported new businesses but has also helped existing enterprises scale up. For instance:
- Kishor loans, used to expand operations, jumped from 5.9% in FY16 to 44.7% in FY25
- Tarun loans, meant for larger expansions, are also growing steadily
In regions like Jammu and Kashmir, over 20.7 lakh loans have been sanctioned, boosting local economies and employment.
MSMEs at the Core of India’s Growth
India’s Micro, Small, and Medium Enterprises (MSMEs) have seen a dramatic rise in credit accessibility due to PMMY. Key statistics include:
- MSME lending surged from Rs 8.51 lakh crore in FY14 to Rs 27.25 lakh crore in FY24
- The MSME share in total bank credit increased from 15.8% to nearly 20% over the decade
- Lending is projected to cross Rs 30 lakh crore in FY25
A Decade of Mudra: Driving Inclusive Growth
As PM Modi commemorated ten years of the Mudra scheme, he emphasized that it is a reflection of India’s grassroots entrepreneurial revolution, powered by access to formal credit and government support.
With over 52 crore beneficiaries and a loan book of Rs. 32.61 lakh crore, the Pradhan Mantri Mudra Yojana stands as a beacon of inclusive development, transforming livelihoods and accelerating India’s journey towards a self-reliant economy.
