Labour Bureau submits report on jobs created by MUDRA loans

Updated - February 22, 2019 10:31 pm IST

Published - February 22, 2019 09:27 pm IST - NEW DELHI

Photo: Facebook/@MUDRAOfficial2018

Photo: Facebook/@MUDRAOfficial2018


The Labour Bureau has completed its survey on employment generated by the MUDRA loan scheme, giving the Centre a potential data tool to combat other reports showing a dismal scenario on jobs.

“We have completed the survey and submitted the report to the Labour Ministry,” said a senior Labour Bureau official, speaking on condition of anonymity. “It is awaiting the Minister’s approval now… it is likely to be released in the first week of March,” the official said, declining to comment on the survey’s findings.

The Pradhan Mantri Mudra Yojana was introduced in April 2015 as an effort to extend affordable credit to micro and small enterprises. Loans up to ₹10 lakh are extended to these non-corporate, non-farm enterprises by the Micro Units Development and Refinance Agency (MUDRA) through last-mile financial institutions. So far, 15.56 crore loans worth a total of ₹7.23 lakh crore have been disbursed.


Before stepping down as vice chairman of Niti Aayog in August 2017, Arvind Panagariya, had submitted a report on the recommendations of a task force he had chaired on improving jobs data. One recommendation was to analyse the extent of employment and self-employment generated by MUDRA loans.

In December 2017, faced with mounting criticism on the failure to create job opportunities, the Labour Ministry had asked the Labour Bureau to initiate the survey on jobs created through the MUDRA scheme.

The Labour Bureau’s completed report on MUDRA loans has now been submitted to the Centre at a time when it is taking flak for not releasing the results of the National Sample Survey Organisation’s periodic labour force survey. According to a report in the Business Standard, a leaked copy of the NSSO’s findings showed that unemployment hit a 45-year high of 6.1% in 2017-18.

Central government ministers and officials have already attempted to use the MUDRA scheme’s performance to combat criticism based on the leaked NSSO job survey report.

Some economists, however, have advised caution in the interpretation of MUDRA data, especially as it relates to jobs.

“Every new loan certainly doesn’t imply creation of a new job,” ICRIER fellow Radhicka Kapoor, wrote in a working paper titled ‘Waiting for Jobs’. “It is improbable that these loans are being given to those who were formerly unemployed. They are more likely being given to people who are moving to self employment from other jobs resulting in no new net job creation.” Further, she asserted: “Given that the average size of the loan disbursed under MUDRA is quite small, it is unlikely that the loan seekers are providing a job to anyone other than themselves.”

0 / 0
Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in


Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.