MUDRA: AN INITIATIVE TOWARDS PROMOTING ENTREPRENEURSHIP IN INDIA

Abstract

The period before 1991, witnessed that the government contact were the main reason for the success of the Indian business, the decisions during this phase was mostly based not on the dynamics of free market but on the connections, due to which large scale success stories in India were few, with limited capital and subdued entrepreneurship. After liberalization the entrepreneurship in India has transformed drastically and the major contributor is the banking system which has gained flexibility with time. Banks have played an important role in developing entrepreneurs as all entrepreneurs don’t necessarily come from sound financial background. They always need loans at initial level for generating capital to start their work. With this mindset Pradhan Mantri Mudra Yojana or Modi loan known as MUDRA was launched by Narendra Modi which stands for Micro Units Development and Refinance Agency on 8th April, 2015 the target audience are the small business owners who are often neglected, as banks and financial institution focus more on granting products and services to the secured lot who will pay a higher rate of interest and will have their money’s secured. The MUDRA bank Yojana would be helpful in getting this trend changed. The paper deals with an overview of Mudra Yojana, the products offered under the scheme, the progress of the MUDRA Yojana , challenges and opportunities in its way and its role in boosting entrepreneurship in India. The paper concludes that Mudra Yojana so far does not seem to have significantly altered secular trends in lending to target segments.