MUDRA Scheme and Employment

• 04 Sep 2019

Recently, Pradhan Mantri Mudra Yojana Survey has been conducted by the Labour Bureau under the Ministry of Labour and Employment.

• The survey studied as many as 97,000 beneficiaries and was conducted between April-November 2018. Its salient findings are:
  
  • Just one out of five beneficiaries i.e. 20.6% from the sample survey availed Mudra loan for setting up a new establishment, the rest used the funds for expanding their existing business.
  • A total of Rs 5.71 lakh crore in loans was sanctioned under three categories of Mudra — Shishu, Kishor and Tarun, whereas the average size of a loan was Rs 46,536.
  • The share of three types of loans out of total loan sanctioned under MUDRA in 2018-17 is as follows:
    
    • Shishu loans: 42%
    • Kishor loans: 34%
    • Tarun loans: 24%
  • The share for creation of new jobs by three types of loans under MUDRA in 2018-17 is as follows
    
    • Shishu loans: 66%
    • Kishor loans: 18.85%
    • Tarun loans: 15.51%
  • The loan extended for every additional job created works out to Rs 5.1 lakh.
  • Sector-wise additional job creation under MUDRA is:
    
    • Services: 34.34 %
    • Trading: 33.23%
    • Allied agriculture: 20.33%
    • Manufacturing: 11.7 %
    • Services and trading accounted for more than two-thirds of the additional jobs created.
  • The survey defines “Self Employed” as persons who engaged independently in a profession or trade.
  • Employees or hired workers refer to persons engaged, excluding self-employed, by the unit whether for wages or not, in work connected directly or indirectly with the process including all administrative, technical and clerical staff.

Source: IE