Introduction

The Pradhan Mantri Mudra Yojana (PMMY) was launched by Prime Minister Narendra Modi on April 8, 2015, with the aim of providing financial support to non-corporate, non-farm small and micro enterprises in India. Through this initiative, loans are provided to individuals and small businesses who are unable to access formal institutional finance.

In the Union Budget 2024-25, Finance Minister Nirmala Sitharaman announced an increase in the loan limit under PMMY from ?10 lakh to ?20 lakh, with the introduction of a new loan category, Tarun Plus, aimed at fostering growth in the entrepreneurial sector.

Key Features of the Pradhan Mantri Mudra Yojana

Loan Limit Increase

• Loan Limit Raised: The loan limit has been increased from ?10 lakh to ?20 lakh for eligible entrepreneurs.
• New Loan Category: The newly introduced Tarun Plus category caters to entrepreneurs who have previously availed and successfully repaid loans under the Tarun category.
• Credit Guarantee: The Credit Guarantee Fund for Micro Units (CGFMU) will cover these enhanced loans, further ensuring the security of micro-enterprises.

Categories of MUDRA Loans

PMMY provides collateral-free loans through financial institutions like Scheduled Commercial Banks, Regional Rural Banks (RRBs), Small Finance Banks (SFBs), Non-Banking Financial Companies (NBFCs), and Micro Finance Institutions (MFIs). These loans are provided for income-generating activities in sectors like manufacturing, trading, services, and allied agriculture activities.

Objectives of PMMY

1. Financial Inclusion: PMMY targets marginalized and socio-economically neglected sections of society, promoting financial inclusivity.
2. Support to Small Businesses: By providing affordable loans, the scheme encourages small-scale entrepreneurs, particularly women and minority groups, to establish and expand their businesses.
3. Fostering Entrepreneurship: PMMY aims to unlock the potential of India’s entrepreneurial spirit, especially in rural and underserved areas.

MUDRA: The Institutional Backbone

Role of Micro Units Development & Refinance Agency Ltd. (MUDRA)

MUDRA is the primary institution set up by the Government of India to manage and implement the Mudra Yojana. It acts as a refinancing agency that provides financial support to small and micro-enterprises by working through financial intermediaries, such as banks and micro-finance institutions.

Funding Sources

• Scheduled Commercial Banks
• Regional Rural Banks (RRBs)
• Small Finance Banks (SFBs)
• Non-Banking Financial Companies (NBFCs)
• Micro Finance Institutions (MFIs)

Application Process

Applicants can avail loans through any of the aforementioned financial institutions or apply online via the Udyami Mitra Portal.

Benefits of Pradhan Mantri Mudra Yojana

• Collateral-free Loans: No security is required to obtain loans, which reduces the financial burden on borrowers.
• Easily Accessible: PMMY loans are available across India, making them accessible to entrepreneurs in both rural and urban areas.
• Quick and Flexible Loans: Loans can be disbursed quickly with flexible repayment terms (up to 7 years).
• Empowering Women Entrepreneurs: The scheme offers special incentives for women entrepreneurs, helping them to establish and grow their businesses.
• Support to Rural Areas: Special emphasis on empowering rural enterprises and reducing regional disparities.
• MUDRA Card: The MUDRA Card is a RuPay debit card that allows borrowers to access funds through an overdraft facility, enhancing liquidity for businesses.
• No Default Penalty: In case of loan defaults due to unforeseen circumstances, the government will step in to reduce the burden on entrepreneurs.

Categories of Loans Under PMMY

1. Shishu Category: Loans up to ?50,000

• Targeted at micro-enterprises at the initial stage of their business journey.

2. Kishore Category: Loans between ?50,000 and ?5 lakh

• Targeted at enterprises looking to expand their operations and upgrade their infrastructure.

3. Tarun Category: Loans between ?5 lakh and ?10 lakh

• For established businesses that are in need of funds to scale up.

4. Tarun Plus: Loans between ?10 lakh and ?20 lakh

• A new category designed for entrepreneurs who have repaid loans under the Tarun category and wish to further expand their business.

Achievements of PMMY (2023-24)

• Total Loans Sanctioned: ?5.4 trillion across 66.8 million loans in FY 2023-24.
• Loans Disbursed: Significant amounts were disbursed under each category:
  • Shishu: ?1,08,472.51 crore
  • Kishore: ?1,00,370.49 crore
  • Tarun: ?13,454.27 crore
• Women Borrowers: A large share of loans have gone to women entrepreneurs, ensuring gender inclusivity.
• Minority Borrowers: The scheme also emphasizes financial empowerment of minority communities.
• NPA Reduction: The Non-Performing Assets (NPA) in Mudra loans have reduced to 3.4% in FY 2024, compared to higher levels in earlier years.

Digital Tools and Support Systems

MUDRA MITRA App

The MUDRA MITRA mobile app helps users access information about the PMMY scheme, loan application procedures, and other resources. The app is available for download on Google Play Store and Apple App Store.

Online Loan Application

Entrepreneurs can apply for loans online via portals such as PSBloansin59minutes and Udyamimitra, providing greater convenience and accessibility.

Steps to Improve Implementation

• Handholding Support: Assistance in submitting loan applications is available for applicants.
• Intensive Awareness Campaigns: The government conducts publicity campaigns to raise awareness about PMMY.
• Simplified Loan Process: The loan application forms have been simplified to encourage wider participation.
• Performance Monitoring: Regular monitoring of PMMY implementation to ensure its success.
• Interest Subvention: A 2% interest subvention is offered for prompt repayment of Shishu loans.

Conclusion

The Pradhan Mantri Mudra Yojana has been a transformative scheme in fostering entrepreneurship and ensuring financial inclusion for small and micro-businesses across India. With the recent increase in loan limits and the addition of the Tarun Plus category, the scheme continues to empower emerging entrepreneurs and provides a crucial lifeline for business growth and sustainability. By supporting women, minorities, and new entrepreneurs, PMMY has contributed significantly to economic upliftment and inclusive growth in the country.

Introduction to Rice Fortification

Fortification refers to the process of adding micronutrients, such as vitamins and minerals, to food products that are not naturally present in sufficient amounts. In India, rice fortification has been identified as a cost-effective strategy to address widespread micronutrient deficiencies, particularly iron, folic acid, and vitamin B12. These deficiencies contribute to various health problems such as anemia, stunted growth, and cognitive impairments, particularly among women and children.

Background: India’s Fortified Rice Program

India has one of the highest rates of malnutrition globally, with anemia affecting every second woman and every third child in the country. Rice is a staple food for approximately 65% of India’s population, making it an ideal vehicle for micronutrient fortification. In 2019, the Indian government launched the rice fortification initiative as part of its broader strategy to improve public health and nutrition outcomes.

In July 2024, the Union Cabinet approved the continuation of the fortified rice program under key welfare schemes, including the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY). This initiative will run until December 2028, and aims to make fortified rice a common feature of the Public Distribution System (PDS), mid-day meals, and anganwadis, reaching millions of beneficiaries across the country.

Fortification Process and Standards

The fortification of rice involves adding essential micronutrients—iron, folic acid, and vitamin B12—to rice grains. This can be done by either coating the rice with a premix or producing extruded rice kernels that are enriched with nutrients before blending them with regular rice. According to the Food Safety and Standards Authority of India (FSSAI), every kilogram of fortified rice should contain:

• Iron: 28 mg - 42.5 mg
• Folic Acid: 75 - 125 micrograms
• Vitamin B12: 0.75 - 1.25 micrograms

Scientific Safety and Efficacy of Iron Fortified Rice

The safety and effectiveness of iron-fortified rice have been under close scrutiny. Concerns were raised about whether individuals with hemoglobinopathies (such as Thalassemia and Sickle Cell Anemia) might be adversely affected by the added iron. Initially, the packaging of fortified rice carried health advisories for these individuals, but a 2023 scientific review and committee assessment concluded that there were no health risks from iron fortification for such individuals. The iron levels in fortified rice are minimal compared to the levels of iron patients with Thalassemia receive through blood transfusions, and Sickle Cell patients have naturally elevated levels of hepcidin, which limits iron absorption.

Following the review, the advisory was removed in July 2024, aligning with global practices where similar advisories are not required in countries that fortify rice.

Expansion of Fortified Rice Infrastructure

India’s rice fortification program has scaled up rapidly. As of 2024, over 21,000 rice mills have installed blending equipment to produce fortified rice, with a monthly capacity of 223 lakh metric tons (LMT). Additionally, 232 premix suppliers have the capacity to produce 75 LMT annually, significantly surpassing the requirements of the PMGKAY, which mandates the procurement of 5.2 LMT of fortified rice annually.

To ensure quality, NABL-accredited labs conduct rigorous testing on fortified rice products across the country. This infrastructure expansion supports the goal of fortifying rice distributed through welfare schemes and public safety nets.

Global Context: Rice Fortification Worldwide

Fortification of staple foods, including rice, is a globally recognized practice aimed at addressing micronutrient deficiencies in populations with limited access to diverse diets. As of 2024, 18 countries globally are actively involved in rice fortification. The World Health Organization (WHO) has endorsed rice fortification as an effective means to combat iron deficiency anemia, especially in countries like India where rice is a primary dietary staple.

Countries such as the U.S. have been fortifying rice since the late 1950s, and WHO recommends iron fortification where rice constitutes a major part of the diet.

Benefits of Iron Fortification of Rice

• Improved Cognitive Development: Iron is crucial for brain development and cognitive function. Adequate iron intake during early childhood is linked to better cognitive performance, which can improve educational outcomes.
• Enhanced Maternal and Infant Health: Iron deficiency during pregnancy is associated with risks such as maternal anemia and poor fetal development. Fortified rice helps reduce these risks by improving iron intake among pregnant women.
• Reduction in Prevalence of Anemia: Regular consumption of fortified rice has been shown to improve hemoglobin levels in populations suffering from iron deficiency anemia. This has been particularly evident in pilot districts in India, where iron fortification has led to improved health outcomes among both adults and children.

Potential Risks and Challenges

• Bioavailability of Iron: Iron bioavailability refers to the body's ability to absorb and utilize the iron from fortified foods. While iron from rice is absorbed to a lesser extent compared to meat, its fortification still contributes significantly to overall iron intake, especially in populations that consume rice regularly.
• Overload of Iron: Excessive iron intake can lead to iron toxicity, causing oxidative stress, liver damage, and increased risk of infections. Special care must be taken to ensure that individuals with conditions like hemochromatosis or those receiving other forms of iron supplementation do not experience iron overload.
• Technical and Social Barriers: While India has made substantial progress in infrastructure for rice fortification, challenges remain in ensuring the quality, stability, and safety of fortified rice. Moreover, ensuring affordability, accessibility, and acceptance of fortified rice among diverse population groups remains a critical concern.

Future Directions for Rice Fortification

• Nanotechnology for Enhanced Iron Absorption: To improve the bioavailability of iron, exploring the use of nanotechnology could help encapsulate iron particles, enhancing their absorption and effectiveness in the body.
• Biofortification Integration: Combining iron fortification with biofortification—the process of breeding rice varieties with naturally higher iron content—could provide a sustainable solution for long-term micronutrient deficiency.
• Public-Private Partnerships: To scale up rice fortification, there is a need for collaborations between the government, private sector, and non-governmental organizations (NGOs). These partnerships can help improve distribution networks, technology development, and financial sustainability.
• Continuous Monitoring and Evaluation: Rigorous evaluation studies, such as those being conducted by the Indian Council of Medical Research (ICMR) and NITI Aayog, will help assess the effectiveness of the rice fortification program and ensure its continuous improvement.

Conclusion: A Path to Nutritional Security

The fortification of rice in India represents a powerful tool to address the growing problem of micronutrient deficiencies, particularly iron deficiency anemia, which affects millions of people, especially women and children. By ensuring that fortified rice is integrated into government welfare schemes, India can take a significant step toward improving public health and achieving its nutritional goals.

While challenges related to bioavailability, iron overload, and implementation remain, ongoing research, technological innovation, and collaborative efforts can help mitigate these risks. As India continues to expand its rice fortification program, it offers a model for other countries facing similar nutritional challenges, reinforcing the role of fortified foods in achieving global sustainable development goals (SDGs) related to health and nutrition.

In News:

The Periodic Labour Force Survey (PLFS) conducted by the National Statistical Office (NSO) from July 2023 to June 2024 provides crucial insights into the employment landscape in India.

Key Findings from the PLFS Report 2023-24

• Labour Force Participation Rate (LFPR):
  • The LFPR for individuals aged 15 years and above rose to 60.1%, an increase from 57.9% the previous year.
  • For males, LFPR is at 78.8%, while for females, it increased to 41.7%, up from 37.0%.
• Worker Population Ratio (WPR):
  • The WPR for the same age group stands at 58.2%. This is composed of 76.3% for males and 40.3% for females.
  • Female WPR improved from 35.9% to 40.3% during the reporting period.
• Unemployment Rate (UR):
  • The overall unemployment rate is 3.2%. It slightly declined for males from 3.3% to 3.2%, while it increased for females from 2.9% to 3.2%.

Overview of the PLFS

The PLFS, initiated in April 2017, aims to provide timely and accurate labor market data. It focuses on two main objectives:

• Short-term Employment Indicators: Measure key employment metrics every three months in urban areas using the Current Weekly Status (CWS) approach.
• Annual Estimates: Gather employment and unemployment data for both urban and rural areas, assessing them in terms of Usual Status and CWS.

Methodology and Sample Design

• The survey employs a rotational panel sampling design in urban areas, where households are visited multiple times to ensure comprehensive data collection.
• During the 2023-24 period, a total of 12,800 Field Sampling Units (FSUs) were designated, with 12,743 successfully surveyed.

Conceptual Framework

Key indicators measured include:

• Labour Force Participation Rate (LFPR): Percentage of the population working or actively seeking work.
• Worker Population Ratio (WPR): Percentage of employed individuals in the total population.
• Unemployment Rate (UR): Proportion of unemployed individuals among the labor force.

Challenges in Job Creation

India continues to face significant challenges in generating formal jobs. Key factors contributing to this issue include:

• Informalization of Employment: Growth in sectors like agriculture and construction is leading to increased informal employment, lacking social security and job protections.
• Technological Advancements: Automation and AI threaten job opportunities, even for skilled workers, as evidenced by layoffs in the IT sector.
• Skill Mismatch: Despite a push for skill development, the share of skilled jobs has declined, highlighting a growing disconnect between training programs and labor market needs.
• Policy Impacts: Past policies, such as demonetization and poorly implemented GST, have negatively impacted small and medium enterprises (SMEs), which are vital for job creation.

Way Forward:

To address these challenges, several strategies are proposed:

• Sectoral Diversification: Fostering investments in manufacturing, renewable energy, and technology can generate productive jobs.
• Support for MSMEs: Targeted financial aid and regulatory relief for micro, small, and medium enterprises are crucial for boosting their employment potential.
• Skill Development: Aligning training initiatives with current industry demands, particularly in emerging sectors, is essential.
• Focus on New-Age Services: Encouraging growth in sectors like e-commerce and online education could create diverse job opportunities.

Conclusion

The PLFS 2023-24 reveals an encouraging increase in labor force participation, particularly among women, while also highlighting persistent challenges in unemployment and gender disparities. The findings underscore the need for continued efforts to enhance job creation and improve employment conditions in both formal and informal sectors.

In News:

The Union Cabinet has approved the continuation of the Integrated Development of Wildlife Habitats (IDWH) scheme for the 15th Finance Commission cycle, with a total outlay of ?2,602.98 crore. This scheme aims to enhance the conservation of wildlife and their habitats across India, building upon the earlier "Assistance for the Development of National Parks and Sanctuaries."

Overview of the Integrated Development of Wildlife Habitats (IDWH)

IDWH is a Centrally Sponsored Scheme designed to support various components critical to wildlife conservation. Key aspects of the scheme include:

• Support to Protected Areas: This encompasses national parks, wildlife sanctuaries, conservation reserves, and community reserves.
• Protection of Wildlife Outside Protected Areas: This aims to safeguard wildlife habitats and corridors beyond designated reserves.
• Recovery Programs: These initiatives focus on critically endangered species and their habitats.

Key Projects Under IDWH

The scheme integrates several prominent conservation projects:

1. Project Tiger: Launched in 1973, this initiative seeks to ensure a viable population of Bengal tigers in their natural habitats. It employs advanced technologies such as the M-STrIPES application for effective management and monitoring.
2. Project Elephant: Initiated in 1992, this project focuses on elephant conservation, addressing human-elephant conflicts, and promoting the welfare of domesticated elephants.
3. Development of Wildlife Habitat: This includes Project Dolphin, which utilizes technology like Remotely Operated Vehicles (ROVs) for monitoring dolphin populations, and Project Lion, aimed at strengthening lion conservation efforts in line with the “Lion @ 2047” vision.

Significance of the Scheme

The IDWH scheme promises significant ecological and economic benefits:

• It is projected to generate over 50 lakh man-days of direct employment, alongside indirect job opportunities through eco-tourism and related activities.
• A total of 55 tiger reserves, 33 elephant reserves, and 718 protected areas will benefit from the scheme, enhancing biodiversity and ecosystem health.
• By supporting keystone species such as tigers, elephants, cheetahs, snow leopards, and lions, the scheme contributes to the overall integrity of these ecosystems.

The overall outlay for the three components for the 15th Finance Commission cycle as well as its remaining period:

S.No.                   Name of the Scheme             Central Share                State Share                 Total

1.                        Project Tiger                            1575.00                         955.00                         2530.00

2.                        Project Elephant                      182.58                           54.00                            236.58

3.            Development of Wildlife Habitat           845.4                           273.02                           1118.42

*All figures in Rs. Crores       Total                  2602.98                       1282.02                         3885.00       

Component of EFC                                   2024-25               2025-26

Project Tiger                                            365.00                   365.00     

Project Elephant                                      40.00                      40.12

Development of Wildlife Habitat              195.00                    183.16

*All figures in Rs. Crores       Total       600                         588.28