PIB Summaries 08 April 2025
Content: A Decade of Growth with PM Mudra Yojana 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 Category Loan Range Purpose Shishu Up to ₹50,000 Business initiation Kishor ₹50,000 to ₹5 lakh Business expansion Tarun ₹5 lakh to ₹10 lakh Business scaling Tarun Plus ₹10 lakh to ₹20 lakh For those with clean repayment record 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: Region Centre State/UT General States 60% 40% NE & Special Category States 90% 10% UTs with Legislature 60% 40% UTs without Legislature 100% 0% 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: Type of Crèche Creche Worker Creche Helper Standalone ₹ 6,500 ₹ 3,250 AWCC ₹ 5,500 ₹ 3,000 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 Year Allocation (Cr.) Released (Cr.) 2022–23 ₹ 35 ₹ 4.68 2023–24 ₹ 85 ₹ 64.15 2024–25* ₹ 150.11 ₹ 43.66 *As of Dec 19, 2024 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.