Tuesday, July 17, 2018

Plan to Provide Employment to 2 Crore Persons Per Year in Micro Units Using Mudra Finance Scheme

Use Mudra Scheme for New Self Employment, New Jobs, and for Increase in Income of The Entrepreneurs.

Create three sub-categories in Mudra Scheme - New Self Employment, New Job creation, Expansion of the Units without additional job creation

#PositiveIndia - Employment Potential of Mudra Finance - Employment to 2 Crore Persons per Annum

Presentation of the Plan in National Conference on Inclusive Growth of India



You can send a mail to kvssnrao55 at gmail dot com for full conference paper.

I tell the plan to people of Maharashtra also.



26 September 2017

Where are the 2 Cr Jobs promised by the BJP? RSSurjewala, Congress
Published in Page 2 of The Economic Times, 26 September 2017, Mumbai Edition
Also published by RSSurjewala in FaceBook post

An answer is available in this post that you are reading
Plan for employment to 2-cr persons
(This plan is posted in the comment on the FaceBook post of RSSurjewala)  I want all parliamentarians to become aware of the plan.

20 September 2017

Congress vice-president Rahul Gandhi on Tuesday (10 September 2017) admitted that the UPA government had been "unable" to deliver on the 30,000 jobs it promised to create everyday

The challenge is how to solve the job problem in a democratic environment, and frankly the Congress party was unable to do it," Rahul admitted.
Despite its victory, Rahul believes Modi and the BJP haven't understood how important it is to keep the promise to create jobs.

While Rahul said he appreciates the intention of 'Make in India', he added that its implementation leaves much to be desired. He said it does not mainstream the needs of India's medium and small enterprises, which he believes are the engines of employment and innovation.

First posted on 25 August 2017

The plan is based on the data provided by NSS 73rd ROUND (July 2015 - June 2016) on micro units in India

First understand the data provided by NSS 73rd ROUND (July 2015 - June 2016)

Key Indicators of Unincorporated Non-Agricultural Enterprises (Excluding Construction) in India

(July 2015 - June 2016)

Sample Size

First stage units (Villages and urban blocks): For rural India, the number of villages ( Census Enumeration Blocks
for Kerala) surveyed in the central sample was 8484 and the number of urban blocks/ Census
Enumeration Blocks surveyed was 7839. In addition to this, a “State Sample” was also
surveyed by the State/UT Governments who participated in this survey. The results presented
in this document are, however, based on central sample alone.

Second Stage Units: The unincorporated non-agricultural enterprises were the
ultimate sampling units in NSS 73rd round survey. At all India level a total of 290113
enterprises were surveyed (143179 enterprises in rural and 146934 enterprises in urban

Estimated number of Enterprises

3.2.1 The survey estimated the number of unincorporated non-agricultural enterprises in the
country during 2015-16 as 6.34 crore

Out of the total number of enterprises 51.3 % were in rural areas and the remaining 48.7 % were in urban areas. Out of the total estimated number of enterprises at all India level, 31 % were engaged in manufacturing, 36.3 % enterprises were in trading and 32.6 % were in other services.

As per the results obtained from the survey, the Own Account Enterprises (OAEs)
(i.e. enterprises that do not employ any hired worker on a fairly regular basis) had a dominant
share in the unincorporated non-agricultural enterprises (excluding construction). At all India
level 84.2 % of the estimated number of enterprises under coverage was OAEs. The share of
OAEs was 91.4 % in the rural areas and 76.6 % in the urban areas.

Estimated number of Workers

The results of the survey reveals that during 2015-16, about 11.13 crore workers were
engaged in unincorporated non-agricultural enterprises (excluding construction) in the
country. Among the workers, 55 % worked in urban areas and 45 % worked in rural areas.

The Own Account Enterprises (OAEs) accounted for 62 % of the workforce in the
unincorporated non-agricultural sector (excluding construction) in the country. At all India
level, workers in the OAEs outnumbered those engaged by establishments in all the broad
activity categories

Gross Value Added (GVA)

3.9.1 Gross Value Added (GVA) is an important economic indicator that measures the
contribution of a particular sector to the economy. It gives the value of goods and services
produced less the cost of all intermediate consumption that are directly attributable to that

During the year 2015-16, the aggregate annual gross value added by the unincorporated non-agricultural enterprises engaged in market production was estimated as Rs.1152338 crores.

At all-India level, annual GVA per enterprise in the unincorporated nonagricultural
sector was estimated at Rs. 1,81,908.

For rural India, annual GVA per enterprise
for OAEs and establishments were estimated as Rs. 71,217 and Rs. 4,78,319 respectively.
The corresponding estimates for urban areas were Rs. 1,26,529 and Rs. 7,03,848 respectively.

3.11 Gross Value Added (GVA) per Worker
3.11.1 Gross Value Added per Worker (GVAPW) is a very important measure of labour
productivity obtained by dividing the real output (i.e. gross value added) by the total number
of workers employed by the enterprises.

3.11.2 The annual GVA per Worker for enterprises engaged in market production at all India
level was estimated as Rs. 1,03,744.

3.12.2 The average annual emolument per hired worker estimated from the survey was Rs. 87,544

3.13.2 The estimated value of total owned fixed assets per enterprise by broad activity
category for different enterprise types are presented in Statement 25. At all India level, the
market value of owned fixed assets per enterprise was estimated as Rs. 2,31,869.

Averge Annual GVA per enterprise:  Rs. 1,81,908.
Average owned fixed assets: Rs. 2,31,869.

Value added for Rs. 1,00,000 fixed assets: Rs. 1,81,908/Rs. 2,31,869 =  Rs.78.450 (rounded)
Salary that can be paid to hired workers for 1,00,000 fixed assets =  Rs. 87,544 *Rs.78.450/Rs. 1,03,744 = 66,200

India - MUDRA - Finance Scheme for Micro Units

Mudra loan scheme is a success in meeting its targets of credit delivery. The performance of the units and recovery of loans is to be watched.


                                                             14 September 2017

8 crore loan accounts were opened. How many new businesses got loans? How many new jobs were created. Both are not available in documented form. Mudra Finance can be implemented in a better way with authentic record of new businesses created and new jobs created.

Plan for Creating Employment to 2 Crore Persons  per Year in Micro Units Using Mudra Finance 

1. Self employment to one crore persons

Provide rupees one lakh loan to new units

Provide rupees one lakh crores to one crore new micro units at average of one lakh per unit. Self employment to one crore persons each unit generating valued added of Rs, 78,450.

Micro Unit Business Consultants - To Guide Potential Micro Unit Entrepreneurs

For facilitating this new enterprise creation, one lakh, 100,000 micro unit business consultants have to be trained and given the opportunity to prepare business plans and assist 100 persons to start 100 new units. They can charge a fee of Rs. 1000/- per year per unit for the first five years.  MSME training institutes and enterpreneurship development units can train these business consultants. Skill development ministry can conduct special programmes to develop the business consultants.

2. Wage employment to one crore persons

Provide rupees one lakh rupees loan to existing units with plan to employ one more person.

Provide rupees one lakh  loan to one crore enterprises each having a plan to employ one more person giving wages of Rs, 66,200.

The finance required for supporting the two schemes providing a total employment to 2 crore persons is within the resources of Government of India and the Banking system.

Target of Rs. 3.5 lakh crore for the Year 2018-19 for Mudra Finance Scheme

For the year 2018-19 fix a target of Rs. 3.5 lakh crores for Mudra Finance Scheme with three sub targets

1. One lakh crore for one crore new units.
2. One lakh crore for one crore existing units each giving a job to one person.

3. Remaining 1.5 lakh crore under old scheme - 60% loans to Shishu and remaining to Kishore and Tarun.

The above scheme can create employment to minimum 2 crore persons. Unemployment problem in the country can be tackled through micro units.

The job opportunities in small and medium units, large units, government are still there to people to provide higher income job opportunities.

If you feel plan is feasible, mail this blog post to MLAs, MPs and Ministers asking them to implement the plan.

Please sign the petition to the Prime Minister of India, Shri Narendra Modi


If you have any doubts, please write a comment. Let us develop ways to solve the challenges and provide employment and livelihood to crores of Indians.

I also advocate

Participatory Politics - Introduction

Participatory Budgeting - Innovation in Planning and Budgeting by Government at National, State and Local Levels

Related Articles

Role of Small and Micro Business Units in Various Countries

Job Creation; Recipe for Economic Growth'. 

Dr. Indira Rajaraman, former professor IIM Bangalore & Member of the 13th Finance Commission, Dr. Jahangir Aziz, Head Emerging Market Economics, JP Morgan,
Mr. Niranjan Rajadhyaksha, Executive Editor, Mint &
Mr. Surendra Srivastava, CFO, MUDRA
Moderator: Dr. Soumya Kanti Ghosh, Group Chief Economic Advisor, SBI.
6 July 2017



State Bank of India upload

Updated  18 July 2018, 26 September 2017,  21 September 2017,   7 September 2017, 2 September 2017, 25 August 2017

1 comment:

  1. To be analyzed
    'Regulatory changes critical to create 1 cr formal jobs'
    PTI | Updated: Dec 20, 2017, 15:42 IST