Archives
(PRELIMS Focus)
Why in News?
To achieve the target of 1 crore households under the PM Surya Ghar scheme by March 2027, the MNRE is promoting the Utility Led Aggregation (ULA) model, where DISCOMs fund rooftop solar installations for households unable to afford them.
However, since its launch in mid-2025, the model has seen limited uptake, prompting the government to consider incentives to encourage States.
What is the Utility Led Aggregation (ULA) Model?
The ULA model is an alternative financing and implementation mechanism under the PM Surya Ghar scheme. It is designed to overcome barriers such as high upfront costs and lack of consumer awareness.
Key Features:
- Role of DISCOMs: State electricity distribution companies act as aggregators, identifying households and facilitating installation.
- Financing: DISCOMs pay for the installation upfront. Households do not bear the initial capital cost.
- Target Beneficiaries: Households that either cannot afford rooftop solar or do not have adequate infrastructure to install systems themselves.
- Ownership Models: Two sub-models exist – Utility-Owned Assets Model (utility owns the system for at least five years) and Consumer-Owned Assets Model (consumer owns the system, utility provides additional grant).
Central Financial Assistance (CFA) Disbursement:
CFA is released in a lump sum only after installation, inspection, and commissioning, with no advance payment. Funds are directly transferred to the ULA vendor after NPIA verification.
Progress and Targets
- Overall Scheme Target: 1 crore households by March 2027
- Achievement So Far: 35 lakh households under the scheme (as of April 2026)
- ULA Target: 30 lakh households through ULA model
- Combined Projection: 65 lakh households by March 2027 (gap of 35 lakh remains)
- ULA Sanctions Already Made: 12.58 lakh installations sanctioned in Andhra Pradesh, Odisha, Kerala, Jammu & Kashmir, Andaman & Nicobar Islands, Ladakh, Daman & Diu, Dadra and Nagar Haveli, Telangana, Bihar, and Tripura
Renewable Energy Growth (2025-26)
- Non-fossil capacity added: 55.3 GW
- Solar capacity added: 44.6 GW
- Total installed non-fossil capacity: Nearly half of India’s installed power capacity
- Share in electricity generation: Only about 25% – a consequence of the intermittent nature of solar and wind power
Static-Dynamic Linkage
Static Link (Economy/Environment Syllabus):
- National Solar Mission (2010) – part of National Action Plan on Climate Change (NAPCC).
- Renewable Purchase Obligations (RPOs) – mandated percentage of power from renewables for DISCOMs.
- Grid stability – balancing supply and demand; role of peaking power plants (hydro, gas).
- Subsidy vs. Tax incentive – CFA is a capital subsidy (direct benefit transfer).
Dynamic Link (Current Affairs – 2026):
- West Asia crisis – oil price shocks have accelerated focus on domestic renewable energy.
- India’s 500 GW non-fossil target by 2030 – rooftop solar (40 GW target) is a key component.
- Grid flexibility – need for battery storage, pumped hydro, and flexible coal operations to integrate intermittent renewables.
Source/Reference:
Why in News?
The CAQM (Commission for Air Quality Management) has fined six thermal power plants in Punjab, Haryana, and Uttar Pradesh ₹61.85 crore for not complying with biomass co-firing norms. The plants must pay by April 15, 2026, and submit proof.
What is the Biomass Co-firing Norm?
All coal-based power plants must use at least 3% co-firing of biomass pellets or briquettes along with coal during 2024-25. Failure to comply results in a fine. These statutory provisions were notified to:
- Promote ex-situ management of crop residue
- Reduce instances of paddy straw burning
- Mitigate air pollution in the NCR and adjoining areas
What is CAQM?
The Commission for Air Quality Management in National Capital Region and Adjoining Areas (CAQM) is a statutory body established under the CAQM Act, 2021 (Act No. 29 of 2021).
Key Features:
- Genesis: Replaced the earlier Environment Pollution (Prevention and Control) Authority (EPCA) which was a Supreme Court-mandated body.
- Parent Ministry: Ministry of Environment, Forest and Climate Change (MoEF&CC).
- Headquarters: New Delhi.
- Jurisdiction: NCR and adjoining areas (including states of Punjab, Haryana, Rajasthan, Uttar Pradesh, and Delhi).
- Composition: Chairperson (eminent expert or senior official), members from Central and State governments (ex-officio and independent), and representatives from technical bodies (ISRO, CPCB, etc.).
Key Powers and Functions:
- Authority to issue directions: Under Section 12 of the CAQM Act, the Commission has powers to issue binding directions to any person, officer, or authority (including State governments).
- Environmental compensation: Can impose and collect fines for violations.
- Ban on activities: Can restrict or ban activities contributing to air pollution (construction, industrial operations, vehicular movement).
- Overriding effect: The Commission’s orders have overriding effect over other laws (except the Environment Protection Act, 1986, and the Water/Air Acts). The CAQM Act has a non-obstante clause (Section 24).
- No court jurisdiction: Section 34 bars civil courts from entertaining any suit or proceeding related to the Commission’s orders.
Why was the CAQM Created?
- Shortcomings of EPCA: EPCA was an ad-hoc body created by the Supreme Court (not a statutory body). It lacked permanent legal backing and uniform implementation across states.
- Need for permanent body: A 2018 report by the Parliamentary Standing Committee on Science & Technology recommended a permanent, statutory commission for air quality management.
- Supreme Court observations: The SC had repeatedly observed that EPCA’s mandate was limited and that a statutory body with representation from all NCR states was needed for effective coordination.
What is SAMARTH (Sustainable Agrarian Mission on use of Agri-residue in TPPs)?
SAMARTH is a mission-mode initiative under the Ministry of Power to promote co-firing of biomass pellets in coal-based power plants. It aims to:
- Address the issue of stubble burning by creating a market for crop residue.
- Provide financial support for setting up pellet manufacturing units.
- Create a supply chain for biomass pellets from farms to power plants.
Other Recent CAQM Actions (2026)
Earlier this year, CAQM directed all States in the NCR to prepare annual action plans to combat air pollution and upload them on the Commission’s website.
Static-Dynamic Linkage
Static Link (Environment & Polity Syllabus):
- CAQM Act, 2021: Statutory body; replaced EPCA; jurisdiction over NCR and adjoining areas.
- Polluter Pays Principle: Internationally recognized environmental law principle (Rio Declaration 1992, Principle 16) – basis for environmental compensation.
- Constitutional basis for environmental protection: Article 48A (DPSP), Article 51A(g) (Fundamental Duty).
- Biomass co-firing: Part of India’s National Action Plan on Climate Change (NAPCC) – National Mission on Strategic Knowledge for Climate Change.
Dynamic Link (Current Affairs – 2026):
- Air pollution in NCR: Winter pollution episodes (October-February) continue to be a major public health crisis.
- Stubble burning: Punjab, Haryana, and Uttar Pradesh contribute significantly to post-monsoon air pollution in Delhi.
- Biomass co-firing mandate: Converts agricultural waste into fuel, reducing burning and providing supplementary income to farmers.
- Enforcement gaps: The CAQM found that six plants did not make earnest efforts to comply, highlighting implementation challenges despite statutory backing.
Source/Reference:
Why in News?
India has withdrawn its bid to host COP 33 (2028) under the UNFCCC, citing a review of its commitments. The decision was communicated by the MoEFCC in April 2026, though no official public statement has been made yet.
Background: India’s Candidacy
- Announcement: PM Modi at COP 28 (Dubai, 2023) expressed India’s interest in hosting COP 33.
- BRICS Endorsement: At the 17th BRICS summit (July 2025), member countries “welcomed” India’s candidacy.
- Preparations: In July 2025, MoEFCC set up a dedicated cell for the “professional and logistical requirements” for organising COP 33.
What is COP (Conference of Parties)?
- Parent Body: UNFCCC (United Nations Framework Convention on Climate Change), adopted in 1992 at the Rio Earth Summit.
- Frequency: Annual meeting of the 198 parties (197 countries + EU) to assess progress in dealing with climate change.
- Rotation: Hosting rotates among five UN regional groups:
- African States
- Asia-Pacific States (India is in this group)
- Eastern European States
- Latin American and Caribbean States
- Western European and Other States
Recent and Upcoming COPs
- COP 30 (2025): Brazil (already held)
- COP 31 (2026): Jointly hosted by Turkey and Australia (both part of Western Europe group)
- COP 32 (2027): Scheduled to be held in Ethiopia (Africa)
- COP 33 (2028): With India withdrawn, South Korea is the only country that has so far expressed interest in hosting.
India’s COP Hosting History
India has hosted a COP only once – COP 8 in 2002 in New Delhi. It was a relatively low-key affair compared to modern COPs.
India’s Updated NDCs (March 25, 2026)
India announced its updated Nationally Determined Contributions (NDCs) for the post-2030 period (by 2035):
- 60% of installed electricity capacity from non-fossil sources.
- Reduce emissions intensity of GDP by 47% (from 2005 levels).
- Increase carbon sink by 3.5-4 billion tonnes of CO₂ equivalent through additional forest and tree cover.
India’s Climate Pledge for COP 30 (2025)
At COP 30 in Brazil (2025), PM Modi announced India’s updated climate pledge (NDCs 3.0):
- Carbon intensity reduction: 45% reduction by 2030 (already achieved 36% as of 2025).
- Non-fossil capacity: 500 GW by 2030 (currently 215 GW).
- Net zero by 2070 reaffirmed.
Static-Dynamic Linkage
Static Link (Environment/Polity Syllabus):
- UNFCCC (1992): Rio Earth Summit – objective to stabilize greenhouse gas concentrations.
- Kyoto Protocol (1997): Binding emission reduction targets for developed countries.
- Paris Agreement (2015): Legally binding international treaty on climate change; requires NDCs every 5 years.
- Conference of Parties (COP): Supreme decision-making body of UNFCCC.
- Regional group rotation: Hosting rotates among five UN regional groups.
Dynamic Link (Current Affairs – 2026):
- India’s climate leadership: Despite withdrawing from hosting, India remains a key player in global climate negotiations (e.g., push for climate justice, equity, and Common But Differentiated Responsibilities – CBDR).
- NDCs 3.0 (2026): India’s updated targets for 2035 – more ambitious than previous commitments.
- COP 31 (2026) – Turkey & Australia: First joint hosting of COP – a new model for future COPs.
- COP 32 (2027) – Ethiopia: First COP in Ethiopia; Africa’s continued role as host after Egypt (COP 27).
Source/Reference:
Why in News?
A rare mass mortality event saw 25 Himalayan Griffon vultures die in Lakhimpur Kheri, Uttar Pradesh, near Dudhwa Tiger Reserve on April 7, 2026; six were rescued, marking an unusual incident for the species.
What Happened? (Suspected Cause)
Preliminary findings point to secondary poisoning. Officials suspect that rice laced with pesticides or some artificial chemical was left in the open, possibly to target stray dogs. The dogs ate the poisoned rice and died. Vultures that fed on the carcasses of these dogs then collapsed in nearby fields.
What is the Himalayan Griffon Vulture?
- Scientific Name: Gyps himalayensis
- IUCN Status: Near Threatened (not endangered, unlike the Critically Endangered Oriental white-backed, slender-billed, and long-billed vultures)
- Distribution: Found in the Himalayas and adjoining Tibetan Plateau; a rare sighting in the lowland Terai region of Dudhwa.
- Characteristics: Large raptor (one of the largest Old World vultures), primarily a scavenger feeding on carcasses.
Why is This Incident Significant?
- Rare Sighting: Himalayan Griffons are typically high-altitude birds. Their presence in Dudhwa’s buffer zone is itself unusual.
- Secondary Poisoning Threat: The incident highlights the continued risk of diclofenac-like poisoning (the drug that caused catastrophic vulture declines in the 1990s-2000s), though the specific poison here is yet to be identified.
- Conservation Concern: Even though the species is “Near Threatened” (not Critically Endangered), any mass mortality event is a red flag for local populations and ecosystem health.
Dudhwa Tiger Reserve
- Location: Lakhimpur Kheri district, Uttar Pradesh (on Indo-Nepal border).
- Established: 1977 as a national park; became a tiger reserve in 1987-88 under Project Tiger.
- Area: ~1,284 sq km (including core and buffer).
- Habitat: Terai region – sal forests, grasslands, and swamps.
- Key Species: Bengal tiger, Indian rhinoceros (reintroduced), swamp deer (state animal of UP), elephant, and over 400 bird species.
- Buffer Zone: Semariya village falls in the Padiya section under Bhira range – the buffer zone of the reserve.
The Vulture Crisis in India (Background)
- Population crash (1990s-2000s): Three vulture species – Oriental white-backed, long-billed, and slender-billed – declined by over 95% due to diclofenac (a veterinary anti-inflammatory drug). Vultures feeding on carcasses of treated cattle suffered kidney failure.
- Ban: India banned veterinary diclofenac in 2006 (later phased out by 2008). Meloxicam was promoted as a safe alternative.
- Conservation actions: Vulture Conservation Breeding Centres (VCBCs) established (e.g., Pinjore, Bhopal, Rani, Jodhpur). Vulture Safe Zones created.
- Current status: Populations of the three Critically Endangered species have stabilized but remain extremely low. Himalayan Griffon, being a high-altitude species, was less affected by diclofenac but faces threats from poisoning, habitat loss, and other NSAIDs.
Static-Dynamic Linkage
Static Link (Environment & Ecology Syllabus):
- Vultures as scavengers: Ecological role in removing carcasses, preventing spread of diseases (anthrax, rabies).
- Diclofenac ban (2006): Landmark environmental decision; India’s first drug ban for ecological reasons.
- IUCN categories: Understanding “Near Threatened” vs. “Critically Endangered” – Himalayan Griffon is less threatened than the three endemic vulture species.
- Project Tiger: Dudhwa is one of India’s 53+ tiger reserves under NTCA.
Dynamic Link (Current Affairs – 2026):
- Mass mortality event: First such incident for Himalayan Griffon in recent past – highlights ongoing threats from agricultural pesticides and secondary poisoning.
- Awareness gap: Local villagers may not know that poisoning dogs (even for pest control) can kill protected scavengers.
- Need for safer alternatives: Promoting non-toxic methods for stray dog management and rodent control.
- One Health connection: Poisoning of wildlife often originates from human-animal conflict (stray dogs) and agricultural practices.
Source/Reference:
Why in News?
A study by Toxics Link, has found high levels of lead contamination in soil near lead-acid battery recycling units across Delhi-NCR. The study highlights significant gaps in the enforcement of India’s Battery Waste Management Rules, 2022, and the Extended Producer Responsibility (EPR) framework.
Key Findings of the Study
Soil Contamination Levels:
- Samples analysed: 23 soil samples collected near lead-acid battery recycling units in selected cities, including locations close to residential areas, local communities, and primary schools.
- Lead concentration range: 100 parts per million (ppm) to 43,800 ppm.
- All samples showed evidence of widespread lead contamination.
Comparison with Legal Benchmarks (Environment Protection (Management of Contaminated Sites) Rules, 2025):
- 52% of samples (12 out of 23) exceeded the 5,000 ppm benchmark for Hazardous Contaminated Site category.
- 31% of samples surpassed the permissible limits for industrial areas as prescribed under the Rules.
Other Observations:
- At some sites, waste from battery recycling units was openly dumped on bare ground, increasing the risk of soil and groundwater contamination.
- Unexpected finding: Higher levels of lead, on average, were detected in samples collected from authorised (formal) recycling units compared to unauthorised (informal) units.
Health Impacts of Lead (WHO Data)
Lead is a cumulative toxicant with no known safe level of exposure. It remains one of the most serious environmental health risks globally.
Global Burden:
- Contributes to an estimated 540,000 deaths annually.
Health effects in adults:
- Increased risk of high blood pressure
- Cardiovascular problems
- Kidney damage
Health effects in pregnant women and children:
- During pregnancy: Reduced fetal growth, preterm birth
- In children: High lead exposure causes intellectual disability (as noted in another study cited in the article)
Regulatory Framework for Lead and Battery Waste in India
- Battery Waste Management Rules, 2022:
- Environment Protection (Management of Contaminated Sites) Rules, 2025:
- Other Relevant Regulations:
- Hazardous and Other Wastes (Management and Transboundary Movement) Rules, 2016 – governs hazardous waste including lead.
- Environment Protection Act, 1986 – umbrella legislation.
- Central Pollution Control Board (CPCB) – nodal agency for monitoring compliance.
Why Is This Significant? (Key Concerns)
Enforcement Gap:
- Despite the 2022 Rules and EPR framework, widespread contamination persists.
- The study found that authorised (formal) units had higher lead levels than unauthorised ones – indicating that formalisation alone is not sufficient without strict compliance monitoring.
Proximity to Sensitive Areas:
- Samples were collected near residential areas, local communities, and primary schools.
- Children are especially vulnerable to lead exposure (intellectual disability, developmental delays).
Open Dumping of Waste:
- Waste from battery recycling units openly dumped on bare ground increases risk of soil and groundwater contamination.
- Lead can leach into groundwater and enter the food chain.
Health Burden:
- Lead exposure contributes to 540,000 deaths globally each year.
- In India, high lead exposure is a known cause of intellectual disability in children.
Static-Dynamic Linkage
Static Link (Environment / Polity Syllabus):
- Environment Protection Act, 1986 – umbrella legislation for environmental protection in India.
- Polluter Pays Principle – internationally recognised principle (Rio Declaration 1992, Principle 16); basis for EPR and remediation obligations.
- CPCB and SPCBs – regulatory authorities for monitoring industrial pollution.
- WHO guidelines on lead exposure – no safe level; blood lead level of 5 µg/dL triggers intervention.
Dynamic Link (Current Affairs – 2026):
- Enforcement failure: Despite the Battery Waste Management Rules, 2022, widespread contamination persists – highlights implementation gaps.
- Formal vs. informal sector: Authorised units showed higher lead levels – indicates that mere authorisation does not guarantee compliance without rigorous monitoring.
- Proximity to schools: Contamination near primary schools is a public health emergency requiring immediate action (remediation, relocation, or closure).
- Groundwater contamination risk: Open dumping on bare ground threatens groundwater – a critical drinking water source in NCR.
Source/Reference:
(MAINS Focus)
UPSC Mains Subject: GS Paper III – Economy (Monetary Policy) | GS Paper III – Security (Energy Security)
Sub-topic: Monetary Policy Committee (MPC); Inflation; Growth; Global Shocks
Introduction
The RBI MPC’s April meeting came amid heightened uncertainty due to the West Asia conflict, raising stagflation risks. Moving away from the earlier stable environment, the MPC has rightly adopted a wait-and-watch approach, keeping the repo rate at 5.25% with a neutral stance, as the shock is primarily supply-driven.
Main Body
The New Macroeconomic Reality: From Goldilocks to Supply Shock
Previous Environment (February Meeting):
- Benign macroeconomic climate
- Low inflation and steady growth (Goldilocks scenario)
Current Environment (April Meeting):
- West Asia conflict disrupting energy markets
- Price surges and strained supplies
- Disruptions spreading to other commodities
- Knock-on effects on jobs and incomes
The Stagflation Spectre:
- Rising inflation combined with slowing growth
- Supply shock as the primary driver
The MPC Decision: Repo Rate Unchanged at 5.25%
Key Policy Parameters:
- Repo rate: 5.25% (no change)
- Stance: Neutral (retained)
- Rationale: Wait and watch given supply shock uncertainty
RBI’s Projections:
- Headline inflation (2026-27): 4.6%
- GDP growth (2026-27): 6.9% (down from 7.6% in 2025-26)
Risks Noted by the Committee:
- Further escalation and wider spread of the conflict
- Heightened volatility in global financial markets
- Weather-related events (El Niño conditions)
Why Hold Rates? The Prudence of Waiting
Arguments for the Hold Decision:
- Supply shock, not demand shock—rate hikes cannot fix disrupted energy supplies
- Premature tightening could worsen growth slowdown without curbing inflation
- Ceasefire agreed but uncertain whether it will hold
- Need to assess actual impact on domestic inflation and growth before acting
What the RBI is Watching:
- Whether global fuel prices stay elevated (prices at pump in India unchanged so far)
- Possibility of fertiliser shortfalls
- El Niño conditions affecting agricultural output
- Duration of energy supply constraints
Market Response to Ceasefire: Relief but Caution
Global Market Rally (Post-Ceasefire):
- Nikkei 225: +5.39%
- Kospi: +6.87%
- Sensex: +3.95%
- FTSE 100: +3.07%
Commodity Markets:
- Brent crude oil fell
- Currently trading at around $92.3 per barrel
The Conditional Optimism:
- Much depends on whether the ceasefire holds
- Much depends on how long it takes for energy supply constraints to ease
Future Trajectory: What Will Trigger a Policy Response?
Monetary Policy Action Down the Line Will Depend On:
- How growth and inflation evolve
- The extent of deviation from RBI’s current assessment (4.6% inflation, 6.9% growth)
Potential Triggers for Rate Action:
- Sustained elevation of global fuel prices
- Pass-through to domestic pump prices
- Fertiliser shortages affecting agricultural output
- El Niño disrupting food inflation
- Escalation of the West Asia conflict despite ceasefire
Neutral Stance Implication:
- RBI has not pre-committed to either hike or cut
- Flexibility to respond in either direction as data evolves
The Core Dilemma:
- If RBI hikes rates, it risks deepening the growth slowdown
- If RBI does nothing, inflation expectations may become unanchored
- Wait-and-watch is prudent for now, but a decision point will come
Way Forward
Immediate Priority:
- Monitor pass-through of global fuel prices to domestic pump prices
- Track fertiliser availability and its impact on kharif sowing
- Assess ceasefire durability and energy supply normalisation timeline
If Inflation Remains Contained:
- Neutral stance can continue
- Focus on supporting growth
If Inflation Surges Despite Supply Shocks:
- RBI may need to hike rates to anchor expectations
- However, rate hikes will not fix supply-side disruptions
Structural Lesson:
- India’s energy import dependence makes it vulnerable to global supply shocks
- Monetary policy cannot substitute for energy security and supply diversification
Conclusion
The RBI’s decision to hold the repo rate at 5.25% with a neutral stance reflects prudence amid West Asia-related uncertainty. As the shock is supply-driven, rate hikes would be ineffective. With inflation projected at 4.6% and growth at 6.9%, the outlook remains fragile. A wait-and-watch approach is appropriate, with future action contingent on evolving risks.
UPSC Mains Practice Question
- Critically examine the RBI MPC’s decision to hold rates amid the West Asia conflict. Why is a wait-and-watch approach appropriate for supply-side shocks, and what risks does the conflict pose to growth and inflation? (250 words, 15 marks)
UPSC Mains Subject: GS Paper III – Economy (Inclusive Growth) | GS Paper II – Governance (Social Justice)
Sub-topic: Financial Inclusion; MSMEs; Entrepreneurship; Women Empowerment
Introduction
Launched on April 8, 2015, the Pradhan Mantri MUDRA Yojana (PMMY) has completed 11 years of supporting micro and small entrepreneurs. It offers collateral-free loans up to ₹20 lakh for non-farm, non-corporate activities. With over ₹40 lakh crore disbursed through 57.79 crore loans, PMMY has expanded formal credit access and advanced its core goal of “funding the unfunded.”
Main Body
The Three Pillars of Financial Inclusion
PMMY operationalises one pillar of India’s financial inclusion strategy:
- Banking the Unbanked: Bringing excluded populations into formal banking
- Securing the Unsecured: Providing collateral-free access to credit
- Funding the Unfunded: PMMY’s specific mandate to reach traditionally overlooked borrowers
Key Features of PMMY
Loan Categories Based on Growth Stage:
- Shishu: Up to ₹50,000 for early-stage entrepreneurs
- Kishor: ₹50,000 to ₹5 lakh for growing enterprises
- Tarun: ₹5 lakh to ₹10 lakh for established small businesses
- TarunPlus: ₹10 lakh to ₹20 lakh for scaling enterprises
Coverage: Term financing and working capital for manufacturing, trading, service sectors, and activities allied to agriculture (poultry, dairy, beekeeping, etc.). Interest rates are governed by RBI guidelines with flexible repayment terms.
Cumulative Achievements (as on March 27, 2026)
- Total loans sanctioned: 57.79 crore
- Total amount sanctioned: ₹40.07 lakh crore
Category-wise share by number of loans:
- Shishu accounts for 74% of all loans (the smallest entrepreneurs)
- Kishor accounts for 24%
- Tarun and TarunPlus together account for only 2%
Category-wise share by amount sanctioned:
- Shishu: 32% of total value
- Kishor: 43% of total value
- Tarun: 25% of total value
- TarunPlus: less than 0.1%
Key Insight: Shishu loans dominate by volume, reflecting the scheme’s success in reaching the smallest entrepreneurs at the grassroots level.
Inclusive Reach: Women, OBCs, and First-Time Entrepreneurs
Women Borrowers (67% of loan beneficiaries):
- Shishu category: ₹9.02 lakh crore disbursed
- Kishor category: ₹6.22 lakh crore disbursed
- Tarun category: ₹1.09 lakh crore disbursed
OBC Borrowers: 51% of total loan beneficiaries
Minority Borrowers: ₹3.49 lakh crore disbursed across all categories
First-Time Entrepreneurs:
- Approximately one-fifth of all loans extended to first-time entrepreneurs
- 12.15 crore loans amounting to ₹12 lakh crore to new entrepreneurs
Significance: Two-thirds of loans to women, over half to OBCs—demonstrating PMMY’s role in inclusive growth and empowerment of marginalised sections.
Year-Wise Growth Trajectory
The scheme has shown steady growth over 11 years. The sanctioned amount has increased from ₹1.37 lakh crore in 2015-16 to ₹5.65 lakh crore in 2025-26 (as on March 27, 2026). The number of loans sanctioned peaked at 6.67 crore in 2023-24. Despite occasional fluctuations in loan volume, the sanctioned amount has consistently risen, with a sharp increase from 2022-23 onwards.
Impact Assessment
Positive Outcomes:
- Ended exploitation of small entrepreneurs by informal lenders and money lenders
- Created self-employment opportunities across the country, especially for SC/ST, OBC, and women
- Instilled a new sense of confidence among borrowers
- Democratised entrepreneurship by removing collateral barriers
- Strengthened the MSME credit ecosystem
Government’s Vision: PMMY will continue to empower entrepreneurs to become active participants in India’s journey to Viksit Bharat by 2047.
Way Forward:
- Strengthen post-disbursement mentoring and business support
- Link MUDRA loans with e-marketplaces and supply chains
- Expand TarunPlus category through targeted outreach
- Integrate with digital payment ecosystems for business tracking
- Enhance credit counselling and financial literacy
Conclusion
The Pradhan Mantri MUDRA Yojana (PMMY) has completed 11 years of “funding the unfunded,” with over ₹40 lakh crore disbursed through 57.79 crore loans. It has strengthened financial inclusion by expanding collateral-free credit, especially for women, OBCs, and first-time entrepreneurs. By reducing dependence on informal lenders, PMMY has boosted grassroots entrepreneurship and confidence. It remains a key driver of inclusive growth and bottom-up development towards Viksit Bharat 2047.
UPSC Mains Practice Question
- Critically evaluate the performance of the Pradhan Mantri MUDRA Yojana (PMMY) over the past decade. How far has it advanced financial inclusion, women’s empowerment, and MSME credit access, and what key challenges persist? (250 words, 15 marks)
https://www.pib.gov.in/PressReleasePage.aspx?PRID=2249915®=3&lang=1