Give entrepreneurial boost to the poor for sustainable development!

Sustainable economic development is our common concern, and has always been an area of priority for every successive government at the Centre and in the States and UTs as well. The current Union Government is equally keen to ensure wholesome empowerment of all in general and those from weaker sections of society in particular. In 2018, NITI Aayog brought out a critical and comprehensive document titled 'Strategy for New India @ 75.' In its foreword, Prime Minister Narendra Modi writes: "The collective effort of 1.25 billion Indians is transforming the country. The Union Government is an active partner in the people's quest for building a new India by 2022. It is our endeavour to create an ecosystem which enables every Indian to reach his or her full potential. This will pave the way for inclusive growth, and ensure prosperity to all."

In the detailed preface to the report, then NITI Aayog Vice Chairman Dr Rajiv Kumar concludes: "By 2022, New India will provide a solid foundation for clean, inclusive, sustained and sustainable growth for the next three decades. The 'Strategy for New India @ 75' reflects our preparedness to make this transition. Its recommendations are practical and detailed to facilitate time-bound implementation. All levels of government must work together to achieve the vision of New India. Working together as 'Team India' will ensure prosperity for all while protecting our environment and promoting the emergence of an innovative eco-system, propelling India to the front ranks of the global economy."

None of us will either deny or disagree with the fact that inclusive socio-economic development of all sections of society in an immensely disjointed and unequal social set-up like ours requires a lot of synergy between content, that is, policies, and intent, that is, the commitment and will power of all stakeholders to take welfare schemes to their logical conclusion by ensuring their saturation meaningfully. Under the Stand-up India Scheme, launched on 5th April 2016 to promote entrepreneurship at grassroots level focusing on economic empowerment of women, Scheduled Castes (SCs), and Scheduled Tribes (STs), more than 1.33 lakh new job-creators and entrepreneurs have so far been facilitated.

It is claimed that over one lakh women promoters have benefitted from the Stand-Up India Scheme during its six years of operation. As India is growing rapidly, hopes, aspirations and expectations of a large group of potential entrepreneurs, particularly women and SCs, STs, are also rising. They want to set up an enterprise of their own to allow themselves to thrive and grow. Such entrepreneurs are spread across the country and are bubbling with ideas as to what they can do for themselves and their families. They should be helped.

Similarly, Vanchit Ikai Samooh Aur Vargon Ki Aarthik Sahayta Yojana (VISVAS Yojana) is for the benefit of SC, OBC Self Help Groups (SHGs) or individual members with annual family income up to Rs 3 lakh. Under the scheme, they are eligible to avail interest subvention on bank loans at 5 per cent. There are many other schemes as well. According to the Union Rural Development Ministry, 590 Rural Self Employment Training Institutes (RSETIs), promoted by banks, are functioning across the country extending skill and entrepreneurship development training programmes to rural poor youth to facilitate them to employ themselves by commencing self-employment units or activities.

Given the size of our rural population and their contribution to the primary and secondary economy, there is a need to have RSETIs. In a country of around seven lakh villages, 590 RSETIs may not suffice to achieve the targeted goals. Since inception, 41.93 lakh youth have been trained and 29.34 lakh of them have been settled up to 30th June, 2022. Similarly, under Start-up Village Entrepreneurship Programme (SVEP), a sub-scheme under the Deendayal Antyodaya Yojana–National Rural Livelihoods Mission (DAY-NRLM), 2,08,594 enterprises across 29 States and UTs have been supported so far.

A short study on 'Impact of RSETI Training on Repayment Behaviour of Bank Borrowers' was conducted by the National Academy of RUDSETI, Bengaluru in July 2020. Its findings convey a lot. For example, 85 per cent of loan proposals received by the banks from RSETIs are getting sanctioned. Around 95 per cent of loans given to RSETI trainees are regular in repayment. It is a great sign. Unlike big and powerful corporate houses, people in villages are quite honest and sincere in repaying their bank loans. The mid-term review of SVEP was done during 2018-19 by the Quality Council of India (QCI).

Its findings are no less meaningful. As much as 82 per cent of entrepreneurs across the blocks reported being from SC, ST and OBC categories. 75 per cent of the enterprises were owned and managed by women. As much as 57 per cent of the total household income is through the enterprises promoted under SVEP. The message is loud and clear. If the poor people among us are provided with the right kind of support ecosystem, they are capable of doing wonders. If they are deprived of enabling support coupled with affordable and quality education and health facilities, then sustainability and inclusivity in our developmental journey as a nation will always be elusive.

Let me share some more data here! In the written reply to a question in the Rajya Sabha on August 2, 2022, Minister of State for Finance Dr Bhagwat Kisanrao Karad said that Rs 9.98 lakh crore was sanctioned to 16.67 crore loans under the Pradhan Mantri Mudra Yojana (PMMY). The Ministry of Labour and Employment (MoLE) had conducted a sample survey at the national level to estimate employment generation under the PMMY. As per the survey results, PMMY helped in the generation of 1.12 crore net additional employment during a period of approximately three years, that is, from 2015 to 2018. As per the data uploaded by Member Lending Institutions (MLIs) on MUDRA portal, 17.59 crore loans were sanctioned to the applicants from the general category as on July 1, 2022, while 6.10 crore loans were sanctioned for SCs, 2.06 crore for STs and 10.13 crore for OBCs. The data is impressive but not inclusive. The number of loans being sanctioned under PMMY to OBCs, SCs and STs are not in commensurate with their population. It is not a healthy sign and warrants immediate interventions from all stakeholders.

It is fair to conclude that the culture of entrepreneurship among our weaker sections of society has not yet been strengthened even after 75 years of independence from the British Raj, which was heavily tilted in favour of the rich and powerful while lesser mortals had to bear all kinds of brunt. As a free nation, our powers-that-be have done a remarkable job but have also miserably failed in bridging the ever-burgeoning gaps between haves and have-nots.

From time to time, efforts were made to bring in the elements of inclusivity in governance and policy framework but for want of the right kind of intent, we have not been able to deliver the desired results. The vice of exclusion and discrimination must not be institutionalized as a principle. It has been disastrous in many countries of the world. Unfortunately, India has also paid a heavy price for practicing exclusionary and discriminatory practices for decades where national resources and opportunities were out of bound for the vast masses. Having learnt so much from our past experiences and failures, let us ensure India moves on the path of total inclusion!

(The writer is a senior journalist, columnist and author. The views expressed are strictly his personal)