Role of MUDRA in Promoting SMEs/MSE, MSMEs, and allied Agriculture Sector in the rural and urban area - To Achieve 5 Trillion Economy

Abstract

Purpose: Pradhan Mantri MUDRA Yojana(PMMY) will offer loans up to  10 lakh to Non- Corporate, Non-farm micro-enterprises to generate income and employment in manufacturing services, retail  MSME, SMEs and Agriculture related occupations like beekeeping, horticulture, pisciculture, Poultry, agro-industries, diary, agriclinics, agribusiness, to add to the national wealth with the support of SIDBI, NABARD in providing working capital. The Economic Survey-2020-21 recently tabled in Parliament, has stated that about 54.6 % of the workforce in the country is still engaged in agricultural and allied sector activities(Census2011)as well as Micro, small and medium businesses (MSMEs) have played a major role in India’s economic expansion and Women Empowerment, More than 40 per cent of the nation’s GDP comes from the MSME sector, which is a major source of employment and in the Budge emphasizes MSME  and agriculture allied activities. MUDRA   act as a refinancing institution to Commercial banks, NBFCs, MFIs, RRBs, SFBs through Shishu, Kishor, Tarun schemes in credit outreach model of delivery is SHGs/JLGs, women entrepreneur and in agriculture allied sectors agripreneurship with development and promotion support to enhance employment opportunities in small and medium-sized enterprises /Micro Small Enterprises (SMEs/MSE) in non –farm activities to achieve US$5 trillion economies microfinance plays a vital role.

Design/Methodology/approach: The Research paper is based on secondary statistics collected from different sources such as websites, and published articles. After the literature review and their area gap in the literature and prospect to analyze the role of MUDRA in promoting MSME, SMEs/MSE and Agri. allied sector's funding needs to create a 5 trillion Economy with an ABCD listing framework.

Findings/Result: The study discloses that the MUDRA maximum limit for the Schemes is to be enhanced and more awareness is to be created about the MUDRA loan for Agri. allied activity, Agriclinics, and lack of clarity relating to the role in refinancing schemes for Banks by MUDRA, and NABARD to promote SHGs and Agri allied activity.

Originality/Value: The Research study was undertaken on the contribution of MUDRA funding needs in terms of working capital to Agri. entrepreneurship in agricultural allied sector activities to enhance employment opportunities in rural and urban areas in India.

Paper type: Conceptual Research.