Published Paper Details:

The Pradhan Mantri MUDRA Yojana (PMMY) aims to provide loans of up to 10 lakh to non-corporate, non-farm micro-enterprises, facilitating income generation and employment in sectors such as manufacturing services, retail MSMEs, SMEs, and agriculture-related activities including beekeeping, horticulture, aquaculture, poultry, agro-industries, dairy, agriclinics, and agribusiness. This initiative, supported by SIDBI and NABARD, is designed to enhance national wealth by providing essential working capital. According to the Economic Survey 2020-21 presented in Parliament, approximately 54.6% of the workforce is still involved in agricultural and allied sectors (Census 2011). Furthermore, MSMEs have significantly contributed to India's economic growth and women's empowerment, accounting for over 40% of the nation's GDP and serving as a crucial employment source. The budget highlights the importance of MSMEs and agriculture-related activities. MUDRA functions as a refinancing institution for commercial banks, NBFCs, MFIs, RRBs, and SFBs through its Shishu, Kishor, and Tarun schemes, utilizing a credit outreach model that includes SHGs/JLGs, women entrepreneurs, and agripreneurs. This support aims to enhance employment opportunities in small and medium-sized enterprises (SMEs/MSEs) within non-farm activities, contributing to the goal of achieving a US$5 trillion economy, where microfinance plays a pivotal role. The research paper utilizes secondary statistics gathered from various sources, including websites and published articles. Following a literature review, it identifies gaps and prospects for analyzing MUDRA's role in addressing the funding needs of MSMEs, SMEs/MSEs, and the agriculture allied sector, framed within an ABCD listing framework. The research reveals that the maximum limit for MUDRA Schemes should be increased, and there is a need for greater awareness regarding MUDRA loans for agricultural allied activities and Agriclinics. Additionally, the study highlights the ambiguity surrounding MUDRA's role in refinancing schemes for banks, as well as the involvement of NABARD in promoting Self-Help Groups (SHGs) and agricultural allied activities. This study focused on the significance of MUDRA funding in providing working capital for agricultural entrepreneurship within the allied sector, aiming to boost employment opportunities in both rural and urban regions of India.