Ranjit Singh & Sujata Singh
Department of Applied Economics
University of Lucknow
Lucknow, India

Abstract-This study presents a comprehensive longitudinal analysis of the Pradhan Mantri MUDRA Yojana (PMMY) scheme’s performance and socioeconomic impact from 2015 to 2024. Employing econometric trend analysis and descriptive statistics on secondary data obtained from the Ministry of Finance, Reserve Bank of India financial inclusion indicators, and PMMY annual reports, this paper evaluates the scheme’s effectiveness in promoting rural entrepreneurship and financial inclusion. Our findings reveal sustained expansion in program reach with year over year growth rates averaging 18.3% in loan disbursements, significant participation from women entrepreneurs (63.63% of total accounts), and underrepresented communities (46.94% SC/ST/OBC beneficiaries). However, the paper identifies persistent regional disparities in loan utilization efficiency (coefficient of variation: 0.42) and graduation rates across loan categories. Statistical analysis indicates a positive correlation (r=0.87, p<0.01) between PMMY disbursements and per capita income growth in rural areas. The paper concludes with evidence based policy recommendations focusing on enhancing last-mile connectivity, strengthening monitoring frameworks, and implementing targeted capacity-building interventions to maximize the long-term developmental impact of microfinance initiatives.

Keywords-Rural entrepreneurship, Financial inclusion, Microfinance policy, MUDRA loans, Econometric analysis, Developmental economics

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