PM Narendra Modi promises to empower small entrepreneurs, self-employed individuals

New Delhi: Prime Minister Narendra Modi has promised to empower the millions of small entrepreneurs and self-employed individuals such as vendors, grocers and weavers that make up India's large informal economy, calling them the true backbone of the nation as value and job creators, instead of the large companies that are perceived to be dominating the economy.

"You should be able to run your business easily — not be harassed by officials, get loans for your day-to-day activities, material for your operations and markets for your products," the PM said, adding that it is important for such entrepreneurs to feel financially secure and get access to affordable credit.

A day after launching the Pradhan Mantri Micro Units Development Refinance Agency ( MUDRA) Yojana to fund micro and small enterprises, the PM has written an open letter asking people to take advantage of such initiatives, adding that they can also avail of a loan of Rs 5,000 for business purposes against their Jan Dhana Yojana bank accounts. "The strength you give the economy is one of its most overlooked secrets. While many think that large companies dominate, in reality, it's over five and a half crore small units like yours, which drive our economy through small manufacturing, trading and service businesses," the PM said, adding that such activities employ nearly 12 crore people, most of whom belong to backward sections of society such as scheduled castes, tribes and minorities.

Expressing confidence that such economic activity can thrive even more, the PM laid out the initiatives taken by his government to strengthen the hands of informal economy workers.

The PM said irregular and costly power supply hits the small enterprises the most, so the Centre is helping states to create a separate supply stream for rural agricultural power needs under the Deen Dayal Upadhyaya Gram Jyoti Yojana. The PM also referred to the steps being taken to make it easier for the youth to start their own businesses and the establishment of Atal Innovation Mission for developing world-class innovation hubs. Modi pointed to the Budget announcements that offer life and accident insurance at very low premia to the poor and the Atal Pension Yojana that promises people a monthly pension ofRs 5,000 by saving Rs 250 per month.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.