The Pradhan Mantri Mudra Yojana Survey was recently conducted by the Labour Bureau, a branch of the Ministry of Labour and Employment. The survey covered 97,000 beneficiaries and took place from April to November 2018. This article aims to shed light on the key findings of the survey, focusing primarily on the distribution of Mudra loans, their utilization, and their impact on job creation.
Mudra Loan Utilization
One of the key findings from the survey is that only one out of every five beneficiaries, or 20.6% of the sample, used the Mudra loan to set up a new establishment. The majority of loan recipients, in fact, employed the funds to expand their existing businesses. By and large, the Mudra loan has served as a financial resource for established businesses seeking to upscale their operations.
Mudra Loan Distribution
The survey reported that a total of Rs 5.71 lakh crore in loans was sanctioned under the Mudra scheme, which is further divided into three categories: Shishu, Kishor, and Tarun. The average size of a loan given under this scheme was Rs 46,536.
The breakdown of the total loan sanctioned under MUDRA in the fiscal year 2018-17 is as follows:
| Loan Type | Percentage of Total Loan |
|---|---|
| Shishu loans | 42% |
| Kishor loans | 34% |
| Tarun loans | 24% |
Impact on Job Creation
Loan categories demonstrated different efficacies in job creation. Shishu loans led the pack with 66% of new jobs created under MUDRA, followed by Kishor loans at 18.85% and Tarun loans at 15.51%. Evidently, Shishu loans have been the most potent in triggering job creation.
The survey also gauged the loan amount extended for every additional job created, which comes out to Rs 5.1 lakh.
Sector-Wise Job Creation
The Mudra loans’ influence extended across numerous sectors. In terms of additional job creation, the services sector benefitted the most with a 34.34% share. This was closely followed by trading at 33.23%, allied agriculture at 20.33%, and manufacturing at 11.7%. The services and trading sectors combined accounted for over two-thirds of the additional jobs created through the scheme.
Defining ‘Self Employed’
The survey defined ‘Self Employed’ as those individuals independently engaged in a profession or trade. On the other hand, ‘Employees’ or ‘Hired Workers’ were defined as those hired by a unit, regardless of whether they are paid wages or not. These individuals are directly or indirectly involved in the process, including all administrative, technical, and clerical staff.