International Journal of Financial Management and Economics
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E-ISSN: 2617-9229|P-ISSN: 2617-9210
International Journal of Financial Management and Economics
Printed Journal   |   Refereed Journal   |   Peer Reviewed Journal
Vol. 2, Issue 1 (2019)

MUDRA scheme in India: An in-depth analysis of its performance

Dr. Surinder Kaur and Parminder Kaur

The Mudra scheme, officially known as Pradhan Mantri Mudra Yojana (PMMY), was launched in 2015 by the Indian government with the aim of facilitating financial support to micro and small enterprises (MSMEs) by offering affordable loans. This study evaluates the scheme's impact on access to finance, loan disbursement, targeted beneficiaries, job creation, challenges, and long-term sustainability. The study aims to assess the scheme's effectiveness in empowering entrepreneurs, promoting inclusive growth, and addressing the financial needs of marginalized sections of society. The key objectives of the study include examination and evaluation of the four dimensions of MUDRA scheme i.e., performance of various product offerings, category wise performance, bank wise performance, and state wise performance. The study is based on analysis of secondary data available on MUDRA portal (, its annual reports, various journals, newspaper articles and magazines. The study is descriptive and analytical in nature. The study is limited to Mudra Banks schemes only covering a time period is 2015-2019.
The findings highlight the Mudra scheme's success in reaching many beneficiaries and promoting inclusive growth. It has created opportunities for self-employment, and facilitated job creation, particularly in rural and semi-urban areas, contributing to a more inclusive and sustainable economy. Mudra Yojana has also been successful in promoting entrepreneurship among women, minorities, and new entrepreneurs and thereby instrumental in bridging the financial gap and promoting inclusive economic development. However, the study pointed out certain challenges that need to be addressed, such as credit risk, loan repayment defaults, the need to enhance entrepreneurial skills among marginalized sections of society, and the establishment of effective support mechanisms
The paper concludes with recommendations for enhancing the scheme's effectiveness and ensuring its continued positive impact on the Indian economy. Through a balanced assessment of the Mudra scheme's achievements and challenges, this research aims to provide valuable insights for policymakers, researchers, and stakeholders in assessing the scheme's performance and identifying areas for improvement.
Pages : 94-104 | 630 Views | 247 Downloads
How to cite this article:
Dr. Surinder Kaur, Parminder Kaur. MUDRA scheme in India: An in-depth analysis of its performance. Int J Finance Manage Econ 2019;2(1):94-104. DOI: 10.33545/26179210.2019.v2.i1.217
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