Authors : Dr. Rajashree Upadhyay; Dr. Mahesh Kumar Kurmi

Volume/Issue : Volume 10 - 2025, Issue 8 - August

Google Scholar : https://tinyurl.com/9yz9re2j

Scribd : https://tinyurl.com/ycdancye

DOI : https://doi.org/10.38124/ijisrt/25aug850

Note : A published paper may take 4-5 working days from the publication date to appear in PlumX Metrics, Semantic Scholar, and ResearchGate.

Note : Google Scholar may take 30 to 40 days to display the article.

Abstract : The Pradhan Mantri MUDRA Yojana (PMMY) has emerged as a flagship financial inclusion program in India, aimed at supporting micro and small entrepreneurs through collateral-free loans across three categories—Shishu, Kishore, and Tarun. West Bengal, with its dense population and reliance on microenterprises, has been one of the top-performing states under MUDRA. However, the COVID-19 pandemic created unprecedented disruptions in the flow of credit to micro, small, and medium enterprises (MSMEs), warranting a comparative analysis of loan performance before and after the crisis. This paper examines the performance of MUDRA loans in West Bengal during the period 2017–2023, segmented into pre- COVID (2017–2020), COVID (2020–2021), and post-COVID recovery phases (2021–2023). Using secondary data from RBI, PMMY state-wise reports, and Ministry of Finance publications, the study analyzes loan disbursement patterns, category- wise distribution, and borrower profiles. The findings reveal that while disbursement levels dropped marginally in 2020–21 due to lockdown-induced disruptions, the scheme showed remarkable resilience with a sharp rebound in subsequent years, surpassing pre-COVID figures. West Bengal’s disbursed amount rose from ₹32,550 crore in 2017–18 to ₹39,130 crore in 2019–20, dipped slightly during COVID-19 (₹33,020 crore in 2020–21), and reached ₹48,410 crore by 2022–23. A notable shift was observed from Shishu loans to higher-ticket Kishore and Tarun loans, indicating business expansion and credit deepening in the state’s MSME sector. These insights have significant policy implications for strengthening financial inclusion, credit delivery, and resilience of micro-entrepreneurs in times of crisis.

Keywords : MUDRA, PMMY, COVID-19, MSMEs, West Bengal, Financial Inclusion.

References :

1. Chattopadhyay, S. (2020). Microfinance and small enterprise growth: The case of West Bengal. Economic and Political Weekly, 55(18), 32–40.
2. Das, P., & Pradhan, B. (2021). COVID-19 and the crisis of Indian MSMEs: Evidence from field surveys. Journal of Rural Development, 40(2), 145–162.
3. Dev, S. M., & Sengupta, R. (2020). COVID-19: Impact on the Indian economy (IGIDR Working Paper No. WP-2020-013). Indira Gandhi Institute of Development Research.
4. Kumar, R., & Singh, A. (2018). Financial inclusion through MUDRA: An assessment. Journal of Commerce and Management Thought, 9(3), 421–433.
5. Mishra, A. (2020). Credit constraints and enterprise graduation in India: Evaluating the MUDRA scheme. Indian Journal of Economics and Development, 16(1), 101–117.
6. National Bank for Agriculture and Rural Development. (2019). Status of microfinance in India 2018–19. Mumbai: NABARD.
7. Reserve Bank of India. (2021). Financial stability report (June 2021). Mumbai: RBI.
8. Reserve Bank of India. (2022). Handbook of statistics on the Indian economy 2021–22. Mumbai: RBI.
9. State Level Bankers’ Committee (SLBC), West Bengal. (2018–2023). SLBC reports for West Bengal. Kolkata: UCO Bank (Convenor).
10. Ministry of Finance. (2017–2023). Pradhan Mantri MUDRA Yojana (PMMY) performance reports. Government of India.