Mudra Yojana is ‘Employment Driver’: Shekhar Swami

Source: The Hitavada      Date: 04 Apr 2018 10:41:22



Business Bureau,

Mudra is a powerful innovative idea which has tantalizing potential to transform economy at gross root level. It is employment driver which has potential to create thousands of job, said Shekhar Swami, eminent economist, while addressing a gathering here in the city. He was speaking at a function organised jointly by Swadeshi Jagran Manch and Confederation of All India Traders (CAIT), New Delhi at the residence of Dr Keshav Hedgewar.

“Indian retail business is world’s largest disaggregated private business eco system where 57 million non corporate and self organised people are operating. If this sector of the society is brought into main stream of economy, it will increase GDP and tax collection of the country. It is unfortunate that this sector it not supported by credit from formal sources. These people do not have easy access to credit and where ever it is offered to them, they have to pay heavy premium for the same ,” he said.

Emphasizing on promotion of small businesses in the Indian economy, he said, there is a need of Mudra Yojana. Swami drew a comparison between big business and small business saying that in big business there is mass production and mass distribution by few.

“Whereas in small businesses the production is by masses and distribution is also through masses. Big business has creation and concentration of wealth in hands of few whereas in small business their is creation and distribution of wealth amongst masses. Big business attract foreign capital whereas small business works with Swadeshi capital,” he said.

Swami said, Mudra Yojana is very important as big businesses are financially well served. “They can raise money through banks, insurance and pension fund, mutual funds, and with the help of SEBI from capital market and external commercial borrowings. In contrast to this, small business are financially very weak. They lack access to organised funding and have to depend on local sources for money. However, Murda Yojana is specifically designed to fund these non funded entities,” he explained.
Although three years to Mudra implementation had elapsed but still the feed back is people are saying Mudra loan are not available to them.

“Mudra was lunched as a re-financial institution to provide funding to lending institutions. Refinance funding till March 2017 was nearly Rs 6,113 crore. Last year, it was estimated at about Rs 3,000 crore. Refinance done over last three years is estimated at around Rs 9,000 crore. Reserve Bank of India (RBI) has seen Mudra as suspicious right from beginning. It appears that RBI is not interested to see Mudra as a regulator of finances, which was the prime intention of Mudra Yojana,” he said. Government is trying to push Mudra loan through existing banking system. The banks are applying same norms and dealing with small business as they deal with bigger business. But it does not work in a desired manner. The small business eco system that was envisaged for MUDRA Yojana has not been executed, he added. “We need new approach based on ground realities in the country to make Mudra Yojana a successful scheme,” he said.

Yoganand Kale, former Pro Vice Chancellor, presided over the meeting. B C Bhartia, National President of Confederation of All India Traders, introduced the guest. Ajay Patki and Ashitosh Pathak conducted the proceedings. Praveen Mase proposed vote of thanks and Dhananjay Bhide welcomed the guest. CA Satish Sarda, Uday Wankhede, (Mahanagar Sahakarya Vaha of RSS), Nana Akhare of Kisan Sangh, Kishor Dharashivkar Team CAIT Nagpur, Archana Sohani of Bharatiya Mazdoor Sangh, Sanjay Dharmadhikari of Grahak Panchhyat, Udhyan Shroti of Laghu Udyog Bharati, Gajanan Gatlewar, Gyaneshwar Rakshak, Kirana Sangh, Jayshri Gupta, Jyoti Awasthi, Daya Bhutoliya, Sapna Talraja, Asha Kandhariya and others were present.