PMMY Scheme Boosts Number of MSMEs in India

[vc_row][vc_column][vc_column_text]The number of Micro, Small and Medium Enterprises (MSMEs) in India has risen by 25 per cent. This is because the Narendra Modi government’s Pradhan Mantri Mudra Yojana (PMMY) — a scheme to provide easy loans to non-corporate and non-farm small industries — has started to show results.According to the MSME ministry report, the easy provisions under the PMMY has helped to boost
the number of MSMEs.
The PMMY, a flagship scheme of the Modi government, was launched on 8 April 2015. It aims to fund the micro enterprises by bringing them under the formal financial system and offering affordable credit to them. Under PMMY, the entrepreneur can borrow up to INR 10 lakh from all
public sector banks, private sector banks, cooperative banks, regional rural banks, foreign banks, micro finance institutions (MFI) and non-banking financial companies (NBFCs) for the purpose of non-farm income-generating business. Alternatively, the borrower can apply online.
Basing on the stage of the MSME unit, the PMMY has created three categories namely “Shishu”, “Kishore”, “Tarun” for appropriate sanction of loans.
The MSME ministry’s annual report for the fiscal report 2017-18 stated that the number of total MSMEs in India rose by 25%, from 4.53 crore in 2016-17 to 6.33 crore in 2017-18. Uttar Pradesh leads the list of states having the highest number of MSMEs, with 14.20%, followed by West Bengal with 14%. Uttar Pradesh has the highest number of MSMEs with 89.99 lakhs, followed by West Bengal follows second with 88.67 lakhs. Tamil Nadu follows third with 49.48 lakhs, Maharashtra stands fourth with 47.78 lakhs and Karnataka fifth with 38.34 lakh MSMEs.
Contributing about 8% to the GDP and having a share of 45% in India’s manufacturing output growth, the MSME sector is the largest job provider in the country.[/vc_column_text][/vc_column][/vc_row]