New Delhi, April 9, 2025 – As the Pradhan Mantri Mudra Yojana (PMMY) marks its 10th anniversary today, the flagship scheme of the Government of India has emerged as a cornerstone of grassroots entrepreneurship, disbursing over ₹32.61 lakh crore to small businesses across the country since its launch on April 8, 2015. Amid escalating global trade turmoil sparked by new U.S. tariffs, Indian officials are hailing the program’s role in empowering micro-entrepreneurs and bolstering economic resilience at the local level.
Launched by Prime Minister Narendra Modi, the PMMY aims to provide collateral-free loans of up to ₹10 lakh (recently raised to ₹20 lakh for certain categories in the 2024 Union Budget) to non-corporate, non-farm small and micro-enterprises. The scheme operates under three categories—Shishu (up to ₹50,000), Kishore (₹50,001 to ₹5 lakh), and Tarun (₹5 lakh to ₹10 lakh)—catering to businesses at different growth stages. Over the past decade, it has sanctioned more than 52 crore loans, with disbursements reaching ₹32.61 lakh crore as of February 28, 2025, according to the latest data from the Ministry of Finance.
Finance Minister Nirmala Sitharaman, speaking at a commemorative event in New Delhi, underscored the scheme’s transformative impact. “PMMY has not just funded the unfunded but has ignited dreams at the grassroots. In a time of global economic uncertainty, it’s a shield for our small businesses, fostering self-reliance and job creation,” she said. Officials highlighted that 68% of beneficiaries are women, while 51% belong to SC/ST/OBC categories, reflecting the scheme’s focus on financial inclusion.
The timing of the milestone is significant as India navigates choppy economic waters. The U.S. implemented a 104% tariff on Chinese goods and a 26% tariff on Indian exports effective today, April 9, 2025, alongside a 10% blanket tariff on all imports. These measures, part of President Donald Trump’s aggressive trade policy, have raised fears of supply chain disruptions and cost hikes for Indian exporters. Yet, the PMMY’s support for domestic micro-enterprises is seen as a buffer. “While global trade faces headwinds, Mudra loans are helping small businesses pivot to local markets and innovate,” said an official from the Micro Units Development and Refinance Agency (MUDRA).
Tamil Nadu leads the states with ₹3.23 lakh crore in disbursements, followed by Uttar Pradesh (₹3.14 lakh crore) and Karnataka (₹3.02 lakh crore). Among Union Territories, Jammu and Kashmir tops the list with ₹45,815.92 crore across 21.33 lakh accounts. The scheme’s reach has been praised for supporting diverse sectors—manufacturing, trading, services, and allied agricultural activities like poultry and beekeeping—offering a lifeline to small vendors, artisans, and startups.
Entrepreneurs like Priya Sharma, a handicraft shop owner in Jaipur, exemplify the scheme’s impact. “With a ₹2 lakh Kishore loan in 2022, I expanded my inventory and hired two more artisans. Today, my business is thriving despite export challenges,” she shared. Stories like hers echo across India, with the Labour Bureau estimating that PMMY generated 11.2 million jobs between 2015 and 2018 alone, a trend that continues to grow.
However, challenges remain. Critics point to rising non-performing assets (NPAs) in some lending institutions and argue that the scheme’s reliance on banks and NBFCs limits its reach in remote areas. In response, the government has pushed digital platforms like the Udyamimitra portal and tied up with fintech firms to streamline access.
As global trade tensions mount, the PMMY’s role in fortifying India’s small business ecosystem has never been more critical. With a decade of impact behind it, the scheme stands as a testament to the power of micro-finance in driving economic stability and entrepreneurial spirit at the grassroots level.
