A Geographical Study of Regional Disparities in Distribution of Mudra Loans in India

Financial inclusion plays a pivotal role in driving inclusive and sustainable economic growth, particularly in a diverse country like India. The Pradhan Mantri Mudra Yojana (PMMY), launched in 2015, was designed to provide collateral-free credit to micro and small enterprises through three categories—Shishu, Kishor, and Tarun—targeting the informal and underserved sectors of the economy. Despite the impressive nationwide disbursement figures, this study identifies and analyzes significant regional disparities in the distribution of Mudra loans across Indian states and union territories from 2022-23 to 2024-25. Employing a quantitative methodology and statistical tools such as Pearson’s Coefficient of Skewness, the research reveals a consistent right-skewed distribution, indicating that a few economically dominant states like Uttar Pradesh, Bihar, Maharashtra, and Tamil Nadu account for the majority of disbursed amounts, while smaller and northeastern states continue to receive disproportionately lower allocations. Even with slight improvements in 2023-24, the 2024-25 data confirms the persistence of structural imbalances. The findings underscore the need for region-specific policy interventions to ensure more equitable financial inclusion. Targeted outreach, increased awareness, and transparent monitoring are essential to align the scheme’s outcomes with its inclusive intent.