PIB Summaries 08 April 2025

Content:

1. A Decade of Growth with PM Mudra Yojana
2. A Journey of Women Empowerment and Child Care

A Decade of Growth with PM Mudra Yojana

 Introduction:

• Launched on 8 April 2015, Pradhan Mantri MUDRA Yojana (PMMY) aimed at “Funding the Unfunded” – i.e., supporting micro, small, and non-corporate businesses excluded from formal credit systems.
• Seeks to promote financial inclusion, entrepreneurship, and self-employment, especially among women, SC/ST/OBCs, minorities, and rural communities.
• Operates under MUDRA Ltd., a refinancing agency supporting lending institutions.

Relevance : GS 2(Governance, Welfare Schemes ) ,GS 3(Economy)

Key Achievements (2015–2025)

Credit Outreach and Growth

• Over 52 crore loans sanctioned worth ₹32.61 lakh crore.
• Average loan size tripled: ₹38,000 (FY16) → ₹72,000 (FY23) → ₹1.02 lakh (FY25).
• 36% rise in loan disbursal in FY23 – signaling revival in grassroots entrepreneurial activity.

Expansion of MSME Credit Ecosystem

• MSME credit up 3.2x: ₹8.51 lakh crore (FY14) → ₹27.25 lakh crore (FY24).
• Share of MSME credit in total bank credit: 15.8% (FY14) → ~20% (FY24).
• Enhanced penetration in tier-2/3 cities and rural India, reducing urban-bias in lending.

Job Creation and Self-Employment

• PMMY helped shift India’s labor narrative from job-seekers to job-creators.
• Many micro-entrepreneurs now employ others, strengthening the informal economy’s backbone.
• Micro enterprises supported by PMMY employ nearly 10 crore people, second only to agriculture.

Promoting Inclusive Financial Access

Empowering Women Entrepreneurs

• 68% of PMMY beneficiaries are women.
• Per woman loan disbursement (FY16–FY25): CAGR of 13%; reached ₹62,679.
• Per woman incremental deposits: CAGR of 14%; reached ₹95,269.
• Women-led MSMEs associated with higher employment generation in states with high PMMY outreach.

Uplifting Marginalised Communities

• SC/ST/OBCs hold 50% of total Mudra accounts.
• 11% of loan holders from minority communities – indicating growing socio-economic equity.
• Broke traditional credit access barriers that restricted low-income and backward groups.

Progressive Credit Ladder: Shishu, Kishor & Tarun

•  Kishor loans’ share grew from 5.9% (FY16) to 44.7% (FY25) – indicating businesses are scaling.
• Tarun category gaining momentum, showing confidence in larger enterprises at the grassroots.

Geographical Spread: Leading States & UTs

Top States (Disbursal till Feb 2025):

• Tamil Nadu – ₹3.23 lakh crore
• Uttar Pradesh – ₹3.14 lakh crore
• Karnataka – ₹3.02 lakh crore
• West Bengal – ₹2.82 lakh crore
• Bihar – ₹2.81 lakh crore
• Maharashtra – ₹2.74 lakh crore

Top UT:

• Jammu & Kashmir – ₹45,816 crore across 21.3 lakh accounts – shows expansion in conflict-prone and remote areas.

Global Recognition

• IMF (2017–2024) consistently lauded PMMY:
  • Complemented PMJDY for financial access.
  • Played a key role in formalizing the informal.
  • Empowered women-led MSMEs (>2.8 million by 2023).
  • Cited as a model for inclusive credit access.

Salient Features of PMMY

• Collateral–free loans up to ₹20 lakh.
• Offered through:
  • Scheduled Commercial Banks
  • Regional Rural Banks
  • NBFCs
  • Micro Finance Institutions
• Backed by refinancing support through MUDRA Ltd.
• Emphasis on ease of credit, low interest, and simple procedures.

 Structural Impact & Future Outlook

Mindset Shift

• PMMY changed perception of credit from a liability to an opportunity.
• Encouraged millions to start small salons, stalls, repairs shops, agri-based units.

Strengthening Bottom of Pyramid

• Focus on scaling enterprises, not just starting them.
• Encouraged discipline in repayment and instilled credit culture among first-time borrowers.

Challenges Ahead

• Ensuring loan quality and monitoring defaults.
• Need to improve skill training, market access, and digital financial literacy.
• Integration with schemes like Skill India, Digital India, and Startup India for holistic growth.

Conclusion: A Decade of Impact

• PM Mudra Yojana has democratized entrepreneurship, empowered underrepresented groups, and redefined India’s credit architecture.
• It embodies the philosophy: “Sabka Saath, Sabka Vikas, Sabka Vishwas”—where even the smallest idea gets a chance to thrive.

A Journey of Women Empowerment and Child Care

Background & Rationale

• Increasing participation of women in workforce created demand for quality day care.
• Nuclear family structures reduce traditional support for childcare.
• Lack of crèche facilities restricts women’s access to paid employment.
• Palna scheme formalizes child care responsibilities, aligning with SDG-8 (Decent Work).

Relevance : GS 1(Indian Society ) , GS 2(Governance, Social Justice)

Administrative & Financial Framework

• Launched in 2022 by revamping the erstwhile National Crèche Scheme.
• Sub-scheme under “Samarthya” of Mission Shakti.
• Centrally Sponsored Scheme (CSS) with varying funding ratios:

Objectives

• Provide crèche facilities to children aged 6 months to 6 years.
• Support nutrition, health, cognitive development, and safety.
• Includes all mothers regardless of employment status.
• Ensure compliance with Section 11A of Maternity Benefit Act (mandatory crèche facilities for establishments with ≥50 employees).

Integrated Package of Services

• Day-care + Pre-school education + Early stimulation
• Supplementary nutrition, sourced locally.
• Health check-ups, immunization, and growth monitoring.
• Linked with Mission Poshan 2.0 and ICDS.

Types of Crèches

• Standalone Crèche: One worker + one helper.
• Anganwadi-cum-Crèche (AWCC): Uses existing Anganwadi staff with added crèche-specific personnel.
• AWCCs target last-mile service delivery.
• Target for FY 2024–25: Establish 17,000 new AWCCs.
• As of March 2025: 11,395 AWCCs approved in 34 States/UTs.

Operational Details

• Creche Timings: 26 days/month, 7.5 hours/day, flexible as per local needs.
• Maximum Children per Crèche: 25
• Location: Within 0.5–1 km of mothers’ workplace or child’s residence.
• Honorarium (not salary) model:

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• States can provide additional top-up honorarium.

Progress and Impact (as of early 2025)

• AWCCs Operational: 1,761 | Beneficiaries: 28,783
• Standalone Crèches: 1,284 | Beneficiaries: 23,368

Budget & Fund Utilization

Legislative & Institutional Convergence

• Converges with Labour & Employment Ministry, ICDS, Poshan 2.0.
• Ensures implementation of Maternity Benefit Act.
• States/UTs encouraged to launch portals for employer compliance reporting.

Significance

• Enhances women’s economic participation.
• Provides structured, monitored childcare.
• Promotes inclusive growth, especially in rural/underserved regions.
• Supports maternal well-being and reduces burden of unpaid care work.