Mudra-A Tool for Uplifting Micro Enterprises in India

Micro Units Development and Refinance Agency (MUDRA) Bank is a new institution being set up by Government of India for development and refinancing activities relating to micro units. The purpose of MUDRA is to provide funding to the non corporate small business sector.in this paper the author assessed the performance of MUDRA initiative in India on the basis of stage wise, institution wise and state wise disbursement of amount under this scheme and concluded that According to World Bank data about 70 per cent of people in India living in rural areas of which a sizeable number of people (34880924) have been availing benefit from MUDRA and it will help the growth of Indian MSME Sector and help them increase their contribution to Indian present GDP. Under this scheme, Rs.132954.73 crore disbursements have been done in the space of less than a year. If such rates of growth were maintained, they would constitute a sizeable chunk of total non-farm credit in the economy.