Assessing the Impact of Pradhan Mantri Mudra Yojana (PMMY) on Startups and Entrepreneurial Development in India

Abstract: Launched in April 2015, the Pradhan Mantri Mudra Yojana (PMMY) is a flagship initiative of the Government of India aimed at providing collateral-free microfinance to aspiring entrepreneurs. This paper evaluates the contribution of PMMY to startups and entrepreneurial growth in India during the period 2015–2024. The analysis draws upon secondary sources such as government publications, RBI reports, and MSME statistics. The study reviews loan allocation by categories (Shishu, Kishore, Tarun), participation by gender and social groups, sectoral trends, and the scheme’s role in financial inclusion. Findings indicate that PMMY has been instrumental in widening credit access, especially for women and disadvantaged communities, while fostering entrepreneurship in rural and semi-urban regions. Nevertheless, persistent challenges include rising non-performing assets, limited awareness, and lack of structured business support. The paper concludes by recommending enhanced focus on larger loan categories, manufacturing sector growth, and integration of skill development initiatives with financial support.