The Pradhan Mantri Mudra Yojana (PMMY) initiated on 8th April, 2015, has completed a decade of empowering small business aspirations and consolidating the grass-root economy of India. The statistics presented by the government indicate that over 52 crore loans worth ₹32.61 lakh crore have been disbursed under the scheme, showcasing its pervasiveness of reach across micro, small, and medium enterprises (MSMEs) and first-generation entrepreneurs across the country.
The plan, conceived by the Narendra Modi government, provides collateral-free finance to micro and small entrepreneurs falling into three groups—Shishu (of up to ₹50,000), Kishor (of ₹50,000–₹5 lakh), and Tarun (of ₹5–10 lakh). Conceived as a vehicle of self-employment and financial inclusion, Mudra has grown into one of the strongest pillars of support for the government’s entire program of “Sabka Saath, Sabka Vikas.”
A top official said the program has been a key catalyst to bringing business activity into small towns and villages across India, enabling first-generation entrepreneurs to “take charge of their destinies.”
Women Lead the Way
Another of the success stories of the PM Mudra Yojana has been its empowerment of women entrepreneurs. Women have accounted for nearly 70% of Mudra loans, leading to both economic independence as well as gender equality.
Finance Ministry statistics indicate that over the past nine years, average amount lent to a woman borrower increased 13% CAGR to ₹62,679 and average incremental deposit to a woman increased by 14% CAGR to ₹95,269.
Global Recognition
International Monetary Fund (IMF) has recognized the scheme’s contribution, citing that it facilitates women-owned MSMEs—currently over 2.8 million—to grow. The IMF 2024 report indicated that India’s policy environment, which comprises PMMY, has witnessed increasing self-employment and formalization through low-cost credit.
Employment Generation and Economic Expansion
The total of 5.14 crore person-years of jobs was generated yearly since 2014, as the SKOCH Group report Outcomes of ModiNomics 2014–24 states. Interestingly, PMMY alone generated 2.52 crore person-years of durable jobs yearly, which shows its colossal job-generating role.
Jammu and Kashmir has emerged as a case study of transformation, with 20.72 lakh Mudra loans credited in the past decade, increasing economic stability within the state.
MSME Lending Soars
The impact of the scheme on the MSME sector is also noteworthy. According to a recent State Bank of India (SBI) report, MSME lending has increased from ₹8.51 lakh crore in FY14 to ₹27.25 lakh crore in FY24 and is expected to cross ₹30 lakh crore in FY25.
Moreover, the proportion of MSME credit in overall bank lending has increased to almost 20% in FY24 from 15.8% in FY14.
The report further shows a distinct growth pattern in the size of the enterprises financed. Kishor category loans have grown from mere 5.9% in FY16 to 44.7% in FY25, and Tarun category is seeing increasing demand, indicating that Mudra is not only financing start-ups but also facilitating enterprises to expand.
Driving Self-Reliance and Rural Growth
The growth of credit facilities under PMMY has allowed small businesses in under-served markets to access vital financial support. The scheme is seen as a key enabler of Atmanirbhar Bharat (self-reliant India), fostering local entrepreneurship and inclusive growth.
As PM Mudra Yojana marks its second decade, its role in democratizing credit access and encouraging a culture of entrepreneurship is more crucial than ever in driving India’s economic growth
