10 Years of Pradhan Mantri Mudra Yojana: Empowering Small Businesses Across India:

Prime Minister Narendra Modi marked the 10th anniversary of the Pradhan Mantri Mudra Yojana (PMMY) by engaging with beneficiaries at his residence in New Delhi. The event highlighted the growing spirit of entrepreneurship in India, with a focus on the scheme's role in supporting self-employment and small business expansion.

Understanding Mudra Yojana

Launched on April 8, 2015, the Mudra Yojana has become a key initiative for financial inclusion in India. It offers unsecured loans under three categories:

Shishu: Loans up to ₹50,000

Kishor: Loans between ₹50,000 and ₹5 lakh

Tarun: Loans from ₹5 lakh to ₹10 lakh

Over the last ten years, more than 52 crore loans worth ₹32.61 lakh crore have been disbursed under the scheme, as per government data.

Inspiring Stories from Across India

During the interaction, entrepreneurs shared how Mudra loans helped them start or grow their businesses. Many noted that the absence of collateral requirements made self-employment accessible and opened up opportunities for job creation within their communities.

Women Entrepreneurs Driving Change

Women have played a central role in the scheme’s success. Nearly 70% of all Mudra loan accounts are held by women. From FY16 to FY25, the average loan per woman borrower grew at a compound annual rate of 13%, reaching ₹62,679. Their average deposits also increased by 14% annually, touching ₹95,269.

The International Monetary Fund (IMF), in its 2024 report, recognized Mudra Yojana as a strong contributor to self-employment and the formalization of small businesses, particularly those led by women. India now has over 2.8 million women-led MSMEs.

Boosting Employment and Business Expansion

PMMY has made significant inroads even in challenging regions like Jammu and Kashmir, where over 20.7 lakh loans have been sanctioned. The number of loans in the Kishor category — typically used to expand operations — has grown from 5.9% in FY16 to 44.7% in FY25. The Tarun category also shows increased uptake, reflecting the scheme’s success in supporting business scaling.

Mainstreaming MSMEs

The scheme has helped bring Micro, Small and Medium Enterprises (MSMEs) to the forefront of the Indian economy. MSME credit surged from ₹8.51 lakh crore in FY14 to ₹27.25 lakh crore in FY24, with a projection to exceed ₹30 lakh crore this year. Their share in overall bank lending also increased from 15.8% to nearly 20% over the past decade.