Labour Bureau files MUDRA job report

• The Labour Bureau has completed its survey on employment generated by the MUDRA loan scheme.

• It giving the Centre a potential data tool to combat other reports showing a dismal scenario on jobs.

About the Pradhan Mantri Mudra Yojana

• 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.

Key highlights

• 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.

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Mains Paper 2: Governance | Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

Prelims level: PMMY

Mains level: Problem of Unemployment

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