Mudra bank: The indigenous financial engine

Abstract

Ingenious, innovative, this idea whose time has come holds the answers to India’s economic puzzles The media discourse on MUDRA (Micro Units Development and Refinance Agency) proposed in Budget 2015-16 has not yet fully revealed the theoretical depth and practical wisdom behind the idea. It is a potential game-changer for the economy. Finance Minister Arun Jaitley unveiled MUDRA in his speech as integral to “generate inclusive growth”. He said that “while large corporates have a role to play” inclusive growth has to come from informal sector enterprises that “generate maximum employment”. He said that the 57.7 million micro manufacturing, trading, and service businesses operated by hard-working entrepreneurs generate the maximum jobs for Indians. Mostly (62 per cent) belonging to Scheduled Castes, Scheduled Tribes and Other Backward Classes, these units find it “difficult if not impossible” to access formal credit. Hence the proposal for MUDRA Bank to “fund the unfunded” micro businesses. Read more at: https://www.thehindubusinessline.com/opinion/mudra-bank-the-indigenous-financial-engine/article22512008.ece