System Dynamics Modelling for Assessment of Mudra Scheme in Socio-Economic Sustainable Development of India

Abstract

India facing two major problems has been unemployment and poverty, to tackle these problems Indian government putting especial emphasis on entrepreneurship development. Pradhan Mantri MUDRA scheme or PMMY initiated by government in this favour. PMMY launch in 2015 with objective to provide financial support to non-farm enterprise. The scheme synergizes with other schemes like national rural livelihoods mission, make in India and credit guarantee fund for micro units to fulfil the individual scheme objectives with MUDRA scheme. In this paper system dynamics modelling has been applied for the assessment of MUDRA scheme in socio-economic sustainable development of India. The causal loop diagram drawn based on that stock flow diagram has been constructed. Research is descriptive in nature and it is covered the time span of ten years. It is based on the secondary data which is collected from official websites, government reports, journals and newspaper. From the result it could be concluded MUDRA scheme substantially contributing to socio-economic sustainable development of India.