Financial inclusion is a key driver of inclusive economic growth and poverty reduction in India. The Pradhan Mantri Mudra Yojana (PMMY), launched in 2015, aims to provide collateral-free institutional credit to micro and small enterprises, particularly those excluded from the formal financial system. This study examines the performance and effectiveness of PMMY during the period 2015–16 to 2023–24 using a descriptive and analytical research design based on secondary data sources. Statistical tools such as Compound Annual Growth Rate (CAGR) and mean are employed to analyse growth trends, distribution patterns, and institutional performance. The findings reveal a substantial increase in both the number of loan accounts and the volume of credit disbursed, indicating enhanced financial outreach. While the General category accounts for the largest share of disbursement, higher growth rates among SC and ST categories suggest gradual improvement in financial inclusion. Bank-wise analysis shows that private sector banks and NBFCs are the primary drivers of credit expansion, whereas regional rural banks contribute significantly to rural outreach. However, challenges such as unequal credit distribution, regional disparities, and financial illiteracy persist. The study concludes that although PMMY has significantly strengthened financial inclusion and micro-enterprise development, targeted policy interventions are essential to ensure equitable and sustainable growth.
Rajanna et al. (Thu,) studied this question.
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