A Descriptive Analysis on Performance of P. M Mudra Yojana with Special Reference to Karnataka State

Abstract

The Pradhan Mantri Mudra Yojana, launched in 2015, plays a significant role in promoting financial inclusion and fostering entrepreneurial growth among India’s micro and small enterprises. This paper presents a descriptive analysis of the scheme's performance, with a special focus on Karnataka state over the five years from FY 2019–20 to FY 2023-24. The study employs a descriptive research methodology, relying on secondary data from government reports, PMMY annual publications, and other credible sources. It evaluates disbursement trends across various loan categories, Shishu, Kishore, and Tarun, while also considering the recently introduced Tarun Plus. Data shows Karnataka’s consistent upward trajectory in the number of loan accounts, sanctioned amounts, and disbursements, even during and after the COVID-19 pandemic. The Kishore category, in particular, has demonstrated notable growth, reflecting increased capital support to MSMEs. Furthermore, the scheme has consistently met or exceeded national targets, with the highest overachievement recorded in FY 2023-24. This paper's analysis concludes that the PMMY has significantly contributed to economic empowerment, job creation, and financial accessibility in Karnataka, establishing it as one of the leading states in effectively implementing this flagship initiative.