ENTREPRENEURSHIP DEVELOPMENT THROUGH PRADHAN MANTRI MUDRA YOJANA: A CRITICAL ANALYSIS

Abstract

MSME is the biggest pillars of the Indian economy as it helps in boosting employment generation. However, the most significant impediment to these industries is lack of financial access from the mainline financial institutions. In order to remove the impediment, the Government of India established the Micro Units Development & Refinance Agency Ltd. (MUDRA) in 2015 to provide refinance facility to the lender for loans granted to microentrepreneurs in India. This paper aims to highlight the overall performance of MUDRA in terms of total number of accounts opened, amount sanctioned and disbursed to the less privileged entrepreneur groups ((Women, New Entrepreneur, Minority and Others) since inception. The study is based on secondary data collected from the annual reports of MUDRA database. Annual growth and CAGR were calculated using the total number of accounts opened and amount disbursed. One-way Anova along with Game-Howell post-hoc analysis have been used to determine whether there exists any significant difference with respect to loan disbursed among the less privileged entrepreneur groups. The study reveals that the Mudra loans witnessed substantial progress during the period under review. The study will assist in understanding how Mudra aids in the empowerment of the less privileged entrepreneurs.