Yojana Magazine July 2025 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

 Page 1


Yojna	Magazine	July	2025	
Page 2


Yojna	Magazine	July	2025	
YOJANA JULY 2025: Towards Viksit Bharat 1
TOPIC 1: PM MUDRA YOJANA –  
A DECADE OF HOPE, OPPORTUNITY, 
AND INCLUSIVITY
I. Introduction: A Decade of Empowerment
• Launch Year: April 2015
• Objective: Provide financial support to micro 
and small enterprises
• Significance: Fostered entrepreneurship, 
created jobs, promoted economic growth
• Reach (as of March 2025):
 ¾ 33.32 lakh crore disbursed
 ¾ 52.73 crore loan accounts   
 ¾Culture of micro-entrepreneurship 
embedded across India
II. Case Study: Sima Rani Malakar – Symbol of 
Aspirational India
• Location: Shillong
• Background: Limited household income, 
ambition to provide quality education
• Action: Took RS.40,000 Shishu loan for a 
tailoring business
• Outcome: Improved income; children’s 
education in a quality school
III. Importance of MSMEs and Financial 
Inclusion
• MSME Role:
 ¾ ?Drive economic growth, employment, 
exports
 ¾ ?Heterogeneous nature of MSMEs in India 
– from small artisans to technology based 
startups
• Financial Inclusion Strategy: To promote 
Financial inclusion in India, the GOI’s policy 
framework is focused on three pillars:
 ¾ (i) Banking the unbanked (ii) Securing 
the unsecured (iii) Funding the unfunded
• PMMY’s Role: Strong step specifically 
towards addressing the third pillar : funding 
the unfunded; providing microcredit at 
scale.
IV Structure of PMMY Loans
• Loan Categories:
 ¾ Shishu: Up to RS. 50,000
 ¾ ?Kishore: Rs.50,001– Rs. 5 lakh
 ¾ ?Tarun: Rs. 5.01– Rs. 10 lakh
 ¾ ?Tarun Plus: Rs. 10.01– Rs. 20 lakh (new)
• Goal: Promote nuanced financial access 
for MSMEs, particularly underserved and 
informal sectors
V . Factors Behind PMMY’s Popularity
(i) Zero Collateral: No need for assets; backed 
by CGTMSE/CGFMU guarantees
(ii) Competitive Interest Rates: Affordable for 
small businesses
(iii) Flexible Repayment: Tailored EMIs based 
on business cash flows
(iv) Digital Accessibility: Apply via banks or 
JanSamarth portal
(v) Broad Participation: Supported by PSBs, 
private banks, RRBs, SFBs, MFIs, NBFCs
VI. Performance Metrics
• T otal Sanctioned (FY2025): Rs. 5.20 lakh crore
• Total Disbursed (FY2025): Rs. 5.09 lakh crore
• Cumulative (as of March 2025):
 ¾ Sanctioned: Rs. 34.09 lakh crore
 ¾ Disbursed: Rs. 33.32 lakh crore
Page 3


Yojna	Magazine	July	2025	
YOJANA JULY 2025: Towards Viksit Bharat 1
TOPIC 1: PM MUDRA YOJANA –  
A DECADE OF HOPE, OPPORTUNITY, 
AND INCLUSIVITY
I. Introduction: A Decade of Empowerment
• Launch Year: April 2015
• Objective: Provide financial support to micro 
and small enterprises
• Significance: Fostered entrepreneurship, 
created jobs, promoted economic growth
• Reach (as of March 2025):
 ¾ 33.32 lakh crore disbursed
 ¾ 52.73 crore loan accounts   
 ¾Culture of micro-entrepreneurship 
embedded across India
II. Case Study: Sima Rani Malakar – Symbol of 
Aspirational India
• Location: Shillong
• Background: Limited household income, 
ambition to provide quality education
• Action: Took RS.40,000 Shishu loan for a 
tailoring business
• Outcome: Improved income; children’s 
education in a quality school
III. Importance of MSMEs and Financial 
Inclusion
• MSME Role:
 ¾ ?Drive economic growth, employment, 
exports
 ¾ ?Heterogeneous nature of MSMEs in India 
– from small artisans to technology based 
startups
• Financial Inclusion Strategy: To promote 
Financial inclusion in India, the GOI’s policy 
framework is focused on three pillars:
 ¾ (i) Banking the unbanked (ii) Securing 
the unsecured (iii) Funding the unfunded
• PMMY’s Role: Strong step specifically 
towards addressing the third pillar : funding 
the unfunded; providing microcredit at 
scale.
IV Structure of PMMY Loans
• Loan Categories:
 ¾ Shishu: Up to RS. 50,000
 ¾ ?Kishore: Rs.50,001– Rs. 5 lakh
 ¾ ?Tarun: Rs. 5.01– Rs. 10 lakh
 ¾ ?Tarun Plus: Rs. 10.01– Rs. 20 lakh (new)
• Goal: Promote nuanced financial access 
for MSMEs, particularly underserved and 
informal sectors
V . Factors Behind PMMY’s Popularity
(i) Zero Collateral: No need for assets; backed 
by CGTMSE/CGFMU guarantees
(ii) Competitive Interest Rates: Affordable for 
small businesses
(iii) Flexible Repayment: Tailored EMIs based 
on business cash flows
(iv) Digital Accessibility: Apply via banks or 
JanSamarth portal
(v) Broad Participation: Supported by PSBs, 
private banks, RRBs, SFBs, MFIs, NBFCs
VI. Performance Metrics
• T otal Sanctioned (FY2025): Rs. 5.20 lakh crore
• Total Disbursed (FY2025): Rs. 5.09 lakh crore
• Cumulative (as of March 2025):
 ¾ Sanctioned: Rs. 34.09 lakh crore
 ¾ Disbursed: Rs. 33.32 lakh crore
YOJANA JULY 2025: Towards Viksit Bharat 2
VII. State-Wise Distribution
• Top 5 States (Cumulative Disbursement):
 ¾ Tamil Nadu, Uttar Pradesh, Karnataka, 
West Bengal, Bihar
 ¾ Account for 46.3% of total disbursements
• Alignment with Informal Micro Enterprises 
(IME) Registration:
 ¾ Top PMMY states are also top IME 
registration states (via Udyam Assist 
Platform)
VIII. Loan Category stats:
(i) Shishu Loans: 80% of accounts, 38% of 
value (till FY 2024)
(ii) Kishore Loans: 18% accounts, ~38% of 
value
(iii) Tarun Loans: 2% accounts, ~24% of value
• FY25 Distribution:
 ¾ Shishu: 18.1%
 ¾ Kishore: 50.9%
 ¾ Tarun: 30.2%
 ¾ Tarun Plus: 0.8%
• Loan Size Trend:
 ¾ Rs. 39,405 (FY2016) ?Rs. 81,108 (FY2024) 
?Rs. 1.06 lakh (FY2025)
• Higher Ticket Size Loans:
 ¾ ‘Kishore’ + ‘Tarun’ loans increased from 
57.2% (2016) to 82.7% (2025)
IX. Transformative Impact
• Financial Inclusion
 ¾ New Accounts (as of 31 Mar 2025): Rs. 
10.56 lakh crore sanctioned to 10.97 crore 
new accounts (31% of total)
 ¾ Women Entrepreneurs: Rs.14.85 lakh 
crore sanctioned (~44% of total)
 ¾ SC/ST/OBC Beneficiaries: Rs.11.72 lakh 
crore (~34.5%)
• Empowerment of Small Entrepreneurs
 ¾ Self-employment and economic agency
 ¾ Strong rural penetration.
• Promotion of Informal Micro-Enterprises
 ¾ Strengthens local economies and job 
generation.
• Job Creation
 ¾ Supports micro-enterprises ?high employ-
ment potential per unit turnover
• Access to Credit
 ¾ Lower barriers for collateral-free loans
• Reduction in Economic Inequality
 ¾ Gini Index Decline: Strong negative 
correlation (-0.84) with PMMY loan growth 
(Source: SIDBI)
• Multi-dimensional Poverty Reduction
 ¾ Moderate Positive Correlation (0.44): 
Between PMMY disbursement and 
poverty reduction in top 10 states (2016–
2021)
X. Challenges & Opportunities
• Under-penetrated States:
 ¾ High-population and North-Eastern states 
need more coverage.
• Awareness & Financial Literacy:
 ¾ Campaigns essential to increase reach and 
responsible borrowing.
XI. Role of MUDRA (SIDBI Subsidiary)
• Mandate: Facilitate seamless credit flow by 
refinancing PMMY loans
• Cumulative Refinance (as of 31 March 2025):
 ¾ Sanctioned: Rs. 1.03 lakh crore
 ¾ Disbursed: Rs 1.00 lakh crore
 ¾ Outstanding: Rs 29,421 crore
XII. Conclusion: PMMY’s Legacy and Way 
Forward
• PMMY is more than a loan scheme — it’s a 
story of hope, inclusion, and opportunity
• Aligns with ‘Viksit Bharat’ vision by fostering 
grassroots entrepreneurship
• Going forward, the scheme holds the 
promise to further empower India’s aspiring 
entrepreneurs
Page 4


Yojna	Magazine	July	2025	
YOJANA JULY 2025: Towards Viksit Bharat 1
TOPIC 1: PM MUDRA YOJANA –  
A DECADE OF HOPE, OPPORTUNITY, 
AND INCLUSIVITY
I. Introduction: A Decade of Empowerment
• Launch Year: April 2015
• Objective: Provide financial support to micro 
and small enterprises
• Significance: Fostered entrepreneurship, 
created jobs, promoted economic growth
• Reach (as of March 2025):
 ¾ 33.32 lakh crore disbursed
 ¾ 52.73 crore loan accounts   
 ¾Culture of micro-entrepreneurship 
embedded across India
II. Case Study: Sima Rani Malakar – Symbol of 
Aspirational India
• Location: Shillong
• Background: Limited household income, 
ambition to provide quality education
• Action: Took RS.40,000 Shishu loan for a 
tailoring business
• Outcome: Improved income; children’s 
education in a quality school
III. Importance of MSMEs and Financial 
Inclusion
• MSME Role:
 ¾ ?Drive economic growth, employment, 
exports
 ¾ ?Heterogeneous nature of MSMEs in India 
– from small artisans to technology based 
startups
• Financial Inclusion Strategy: To promote 
Financial inclusion in India, the GOI’s policy 
framework is focused on three pillars:
 ¾ (i) Banking the unbanked (ii) Securing 
the unsecured (iii) Funding the unfunded
• PMMY’s Role: Strong step specifically 
towards addressing the third pillar : funding 
the unfunded; providing microcredit at 
scale.
IV Structure of PMMY Loans
• Loan Categories:
 ¾ Shishu: Up to RS. 50,000
 ¾ ?Kishore: Rs.50,001– Rs. 5 lakh
 ¾ ?Tarun: Rs. 5.01– Rs. 10 lakh
 ¾ ?Tarun Plus: Rs. 10.01– Rs. 20 lakh (new)
• Goal: Promote nuanced financial access 
for MSMEs, particularly underserved and 
informal sectors
V . Factors Behind PMMY’s Popularity
(i) Zero Collateral: No need for assets; backed 
by CGTMSE/CGFMU guarantees
(ii) Competitive Interest Rates: Affordable for 
small businesses
(iii) Flexible Repayment: Tailored EMIs based 
on business cash flows
(iv) Digital Accessibility: Apply via banks or 
JanSamarth portal
(v) Broad Participation: Supported by PSBs, 
private banks, RRBs, SFBs, MFIs, NBFCs
VI. Performance Metrics
• T otal Sanctioned (FY2025): Rs. 5.20 lakh crore
• Total Disbursed (FY2025): Rs. 5.09 lakh crore
• Cumulative (as of March 2025):
 ¾ Sanctioned: Rs. 34.09 lakh crore
 ¾ Disbursed: Rs. 33.32 lakh crore
YOJANA JULY 2025: Towards Viksit Bharat 2
VII. State-Wise Distribution
• Top 5 States (Cumulative Disbursement):
 ¾ Tamil Nadu, Uttar Pradesh, Karnataka, 
West Bengal, Bihar
 ¾ Account for 46.3% of total disbursements
• Alignment with Informal Micro Enterprises 
(IME) Registration:
 ¾ Top PMMY states are also top IME 
registration states (via Udyam Assist 
Platform)
VIII. Loan Category stats:
(i) Shishu Loans: 80% of accounts, 38% of 
value (till FY 2024)
(ii) Kishore Loans: 18% accounts, ~38% of 
value
(iii) Tarun Loans: 2% accounts, ~24% of value
• FY25 Distribution:
 ¾ Shishu: 18.1%
 ¾ Kishore: 50.9%
 ¾ Tarun: 30.2%
 ¾ Tarun Plus: 0.8%
• Loan Size Trend:
 ¾ Rs. 39,405 (FY2016) ?Rs. 81,108 (FY2024) 
?Rs. 1.06 lakh (FY2025)
• Higher Ticket Size Loans:
 ¾ ‘Kishore’ + ‘Tarun’ loans increased from 
57.2% (2016) to 82.7% (2025)
IX. Transformative Impact
• Financial Inclusion
 ¾ New Accounts (as of 31 Mar 2025): Rs. 
10.56 lakh crore sanctioned to 10.97 crore 
new accounts (31% of total)
 ¾ Women Entrepreneurs: Rs.14.85 lakh 
crore sanctioned (~44% of total)
 ¾ SC/ST/OBC Beneficiaries: Rs.11.72 lakh 
crore (~34.5%)
• Empowerment of Small Entrepreneurs
 ¾ Self-employment and economic agency
 ¾ Strong rural penetration.
• Promotion of Informal Micro-Enterprises
 ¾ Strengthens local economies and job 
generation.
• Job Creation
 ¾ Supports micro-enterprises ?high employ-
ment potential per unit turnover
• Access to Credit
 ¾ Lower barriers for collateral-free loans
• Reduction in Economic Inequality
 ¾ Gini Index Decline: Strong negative 
correlation (-0.84) with PMMY loan growth 
(Source: SIDBI)
• Multi-dimensional Poverty Reduction
 ¾ Moderate Positive Correlation (0.44): 
Between PMMY disbursement and 
poverty reduction in top 10 states (2016–
2021)
X. Challenges & Opportunities
• Under-penetrated States:
 ¾ High-population and North-Eastern states 
need more coverage.
• Awareness & Financial Literacy:
 ¾ Campaigns essential to increase reach and 
responsible borrowing.
XI. Role of MUDRA (SIDBI Subsidiary)
• Mandate: Facilitate seamless credit flow by 
refinancing PMMY loans
• Cumulative Refinance (as of 31 March 2025):
 ¾ Sanctioned: Rs. 1.03 lakh crore
 ¾ Disbursed: Rs 1.00 lakh crore
 ¾ Outstanding: Rs 29,421 crore
XII. Conclusion: PMMY’s Legacy and Way 
Forward
• PMMY is more than a loan scheme — it’s a 
story of hope, inclusion, and opportunity
• Aligns with ‘Viksit Bharat’ vision by fostering 
grassroots entrepreneurship
• Going forward, the scheme holds the 
promise to further empower India’s aspiring 
entrepreneurs
YOJANA JULY 2025: Towards Viksit Bharat 3
TOPIC 2: REIMAGINING  
  ENTREPRENEURIAL 
  SKILLS
I. Genesis of Entrepreneurial Skilling in Rural 
India
• Establishment of first Rural Development 
& Self employment training Institute 
(RUDSETI) -1982:
 ¾ Originated in Ujire, Karnataka.
 ¾Joint initiative by Canara Bank, 
Syndicate Bank, and Sri Dharmasthala 
Manjunatheshwara Educational Trust.
 ¾ Aimed at rural entrepreneurial training 
through short-term courses (6 to 60 days) 
and long-term hand-holding (2 years).
• Adoption by Government (2007-08):
 ¾ Model adopted as Rural Self Employment 
Training Institutes (RSETIs).
 ¾ Expansion to over 600 RSETIs nationwide.
II. RSETI Performance and Contributions
• Training Reach:
 ¾ 55.53 lakh rural youth trained in domain 
and entrepreneurial subjects.
 ¾ 73% settlement rate with 40.27 lakh youths 
initiating enterprises.
• Financial Support:
 ¾ Bank linkages for 20.40 lakh trained youth.
• Broader Impact:
 ¾ Youth transform into job creators.
 ¾ Stimulates rural economic development 
and inclusivity.
III. Evolving Entrepreneurship Ecosystem
• Technological Advancements:
 ¾ Emergence of AI, data analytics, online 
marketing platforms (e.g., GeM).
• Other Government Schemes:
 ¾ ESDP and PMEGP under MSME ministry.
 ¾ Potential for synergies and multiplier 
effects.
• Inclusivity Imperative:
 ¾ Special focus required for women, tribals, 
differently-abled, ex-servicemen.
• New Enterprise Models:
 ¾Gig economy, logistics, home-based 
enterprises.
• Demographic Pressure:
 ¾ 8 million youth enter the workforce 
annually.
IV . Need for a Paradigm Shift
• Challenges with Current RSETI Model:
 ¾ Limited course offerings (only 60).
 ¾ Inadequate training reach per district (750-
1000/year).
 ¾ Marginalised communities underrepre-
sented.
 ¾ Inaccessibility of training centres.
 ¾ Lack of provision for reskilling/upskilling.
V. Reforms for a Reimagined Skilling 
Ecosystem
• From Top-Down to Bottom-Up Planning:
 ¾ Skilling demand to be captured at district 
level.
 ¾ Resource allocation based on actual 
demand.
Page 5


Yojna	Magazine	July	2025	
YOJANA JULY 2025: Towards Viksit Bharat 1
TOPIC 1: PM MUDRA YOJANA –  
A DECADE OF HOPE, OPPORTUNITY, 
AND INCLUSIVITY
I. Introduction: A Decade of Empowerment
• Launch Year: April 2015
• Objective: Provide financial support to micro 
and small enterprises
• Significance: Fostered entrepreneurship, 
created jobs, promoted economic growth
• Reach (as of March 2025):
 ¾ 33.32 lakh crore disbursed
 ¾ 52.73 crore loan accounts   
 ¾Culture of micro-entrepreneurship 
embedded across India
II. Case Study: Sima Rani Malakar – Symbol of 
Aspirational India
• Location: Shillong
• Background: Limited household income, 
ambition to provide quality education
• Action: Took RS.40,000 Shishu loan for a 
tailoring business
• Outcome: Improved income; children’s 
education in a quality school
III. Importance of MSMEs and Financial 
Inclusion
• MSME Role:
 ¾ ?Drive economic growth, employment, 
exports
 ¾ ?Heterogeneous nature of MSMEs in India 
– from small artisans to technology based 
startups
• Financial Inclusion Strategy: To promote 
Financial inclusion in India, the GOI’s policy 
framework is focused on three pillars:
 ¾ (i) Banking the unbanked (ii) Securing 
the unsecured (iii) Funding the unfunded
• PMMY’s Role: Strong step specifically 
towards addressing the third pillar : funding 
the unfunded; providing microcredit at 
scale.
IV Structure of PMMY Loans
• Loan Categories:
 ¾ Shishu: Up to RS. 50,000
 ¾ ?Kishore: Rs.50,001– Rs. 5 lakh
 ¾ ?Tarun: Rs. 5.01– Rs. 10 lakh
 ¾ ?Tarun Plus: Rs. 10.01– Rs. 20 lakh (new)
• Goal: Promote nuanced financial access 
for MSMEs, particularly underserved and 
informal sectors
V . Factors Behind PMMY’s Popularity
(i) Zero Collateral: No need for assets; backed 
by CGTMSE/CGFMU guarantees
(ii) Competitive Interest Rates: Affordable for 
small businesses
(iii) Flexible Repayment: Tailored EMIs based 
on business cash flows
(iv) Digital Accessibility: Apply via banks or 
JanSamarth portal
(v) Broad Participation: Supported by PSBs, 
private banks, RRBs, SFBs, MFIs, NBFCs
VI. Performance Metrics
• T otal Sanctioned (FY2025): Rs. 5.20 lakh crore
• Total Disbursed (FY2025): Rs. 5.09 lakh crore
• Cumulative (as of March 2025):
 ¾ Sanctioned: Rs. 34.09 lakh crore
 ¾ Disbursed: Rs. 33.32 lakh crore
YOJANA JULY 2025: Towards Viksit Bharat 2
VII. State-Wise Distribution
• Top 5 States (Cumulative Disbursement):
 ¾ Tamil Nadu, Uttar Pradesh, Karnataka, 
West Bengal, Bihar
 ¾ Account for 46.3% of total disbursements
• Alignment with Informal Micro Enterprises 
(IME) Registration:
 ¾ Top PMMY states are also top IME 
registration states (via Udyam Assist 
Platform)
VIII. Loan Category stats:
(i) Shishu Loans: 80% of accounts, 38% of 
value (till FY 2024)
(ii) Kishore Loans: 18% accounts, ~38% of 
value
(iii) Tarun Loans: 2% accounts, ~24% of value
• FY25 Distribution:
 ¾ Shishu: 18.1%
 ¾ Kishore: 50.9%
 ¾ Tarun: 30.2%
 ¾ Tarun Plus: 0.8%
• Loan Size Trend:
 ¾ Rs. 39,405 (FY2016) ?Rs. 81,108 (FY2024) 
?Rs. 1.06 lakh (FY2025)
• Higher Ticket Size Loans:
 ¾ ‘Kishore’ + ‘Tarun’ loans increased from 
57.2% (2016) to 82.7% (2025)
IX. Transformative Impact
• Financial Inclusion
 ¾ New Accounts (as of 31 Mar 2025): Rs. 
10.56 lakh crore sanctioned to 10.97 crore 
new accounts (31% of total)
 ¾ Women Entrepreneurs: Rs.14.85 lakh 
crore sanctioned (~44% of total)
 ¾ SC/ST/OBC Beneficiaries: Rs.11.72 lakh 
crore (~34.5%)
• Empowerment of Small Entrepreneurs
 ¾ Self-employment and economic agency
 ¾ Strong rural penetration.
• Promotion of Informal Micro-Enterprises
 ¾ Strengthens local economies and job 
generation.
• Job Creation
 ¾ Supports micro-enterprises ?high employ-
ment potential per unit turnover
• Access to Credit
 ¾ Lower barriers for collateral-free loans
• Reduction in Economic Inequality
 ¾ Gini Index Decline: Strong negative 
correlation (-0.84) with PMMY loan growth 
(Source: SIDBI)
• Multi-dimensional Poverty Reduction
 ¾ Moderate Positive Correlation (0.44): 
Between PMMY disbursement and 
poverty reduction in top 10 states (2016–
2021)
X. Challenges & Opportunities
• Under-penetrated States:
 ¾ High-population and North-Eastern states 
need more coverage.
• Awareness & Financial Literacy:
 ¾ Campaigns essential to increase reach and 
responsible borrowing.
XI. Role of MUDRA (SIDBI Subsidiary)
• Mandate: Facilitate seamless credit flow by 
refinancing PMMY loans
• Cumulative Refinance (as of 31 March 2025):
 ¾ Sanctioned: Rs. 1.03 lakh crore
 ¾ Disbursed: Rs 1.00 lakh crore
 ¾ Outstanding: Rs 29,421 crore
XII. Conclusion: PMMY’s Legacy and Way 
Forward
• PMMY is more than a loan scheme — it’s a 
story of hope, inclusion, and opportunity
• Aligns with ‘Viksit Bharat’ vision by fostering 
grassroots entrepreneurship
• Going forward, the scheme holds the 
promise to further empower India’s aspiring 
entrepreneurs
YOJANA JULY 2025: Towards Viksit Bharat 3
TOPIC 2: REIMAGINING  
  ENTREPRENEURIAL 
  SKILLS
I. Genesis of Entrepreneurial Skilling in Rural 
India
• Establishment of first Rural Development 
& Self employment training Institute 
(RUDSETI) -1982:
 ¾ Originated in Ujire, Karnataka.
 ¾Joint initiative by Canara Bank, 
Syndicate Bank, and Sri Dharmasthala 
Manjunatheshwara Educational Trust.
 ¾ Aimed at rural entrepreneurial training 
through short-term courses (6 to 60 days) 
and long-term hand-holding (2 years).
• Adoption by Government (2007-08):
 ¾ Model adopted as Rural Self Employment 
Training Institutes (RSETIs).
 ¾ Expansion to over 600 RSETIs nationwide.
II. RSETI Performance and Contributions
• Training Reach:
 ¾ 55.53 lakh rural youth trained in domain 
and entrepreneurial subjects.
 ¾ 73% settlement rate with 40.27 lakh youths 
initiating enterprises.
• Financial Support:
 ¾ Bank linkages for 20.40 lakh trained youth.
• Broader Impact:
 ¾ Youth transform into job creators.
 ¾ Stimulates rural economic development 
and inclusivity.
III. Evolving Entrepreneurship Ecosystem
• Technological Advancements:
 ¾ Emergence of AI, data analytics, online 
marketing platforms (e.g., GeM).
• Other Government Schemes:
 ¾ ESDP and PMEGP under MSME ministry.
 ¾ Potential for synergies and multiplier 
effects.
• Inclusivity Imperative:
 ¾ Special focus required for women, tribals, 
differently-abled, ex-servicemen.
• New Enterprise Models:
 ¾Gig economy, logistics, home-based 
enterprises.
• Demographic Pressure:
 ¾ 8 million youth enter the workforce 
annually.
IV . Need for a Paradigm Shift
• Challenges with Current RSETI Model:
 ¾ Limited course offerings (only 60).
 ¾ Inadequate training reach per district (750-
1000/year).
 ¾ Marginalised communities underrepre-
sented.
 ¾ Inaccessibility of training centres.
 ¾ Lack of provision for reskilling/upskilling.
V. Reforms for a Reimagined Skilling 
Ecosystem
• From Top-Down to Bottom-Up Planning:
 ¾ Skilling demand to be captured at district 
level.
 ¾ Resource allocation based on actual 
demand.
YOJANA JULY 2025: Towards Viksit Bharat 4
• Community-Based Training:
 ¾ DAY-NRLM promoted Community 
Institutions to organise village-level 
trainings.
 ¾ Use of Community Managed Training 
Centres (CMTCs).
 ¾ Outsourcing training modules to Cluster 
Level Federations (CLFs).
• District-Specific Training Customisation:
 ¾ 4-5 focused trades per district based on 
local resources and market demand.
 ¾ Cluster development (e.g., banana fibre 
industries in banana-growing areas).
• Centres of Excellence (CoE):
 ¾ Select RSETIs to be developed as sector-
specific CoEs.
 ¾ Linked with Aspirational District 
Programme.
VI. Making Trainings More Accessible & 
Inclusive
• Flexible Training Schedules:
 ¾ Duration: 3-4 hours/day based on mutual 
agreement.
 ¾ Encouragement for women participation.
• On-the-Job Training Focus:
 ¾ Conduct at master trainers’ work sites for 
immersive learning.
• Addressing Low-Return Trades:
 ¾ Investigate issues (e.g., outdated tech, 
poor design).
 ¾ Enhance marketability via aggregation 
and digital marketing.
VII. Empowering Master Trainers
• Recognition of Local Expertise:
 ¾ Community-identified master trainers.
 ¾ No rejection due to absence of formal 
certificates.
• Incentivising Trainers:
 ¾ Remuneration based on trade and training 
duration.
 ¾ Fosters trust and mentorship.
VIII. Supporting Growth-Oriented Enterprises
• Scale-Up Opportunities:
 ¾ Higher credit linkage and business 
development planning.
 ¾ Leverage schemes like PMMY, Stand-Up 
India, PMFME.
• Business Clinics:
 ¾ RSETIs to establish advisory platforms for 
mentoring.
IX. Up-skilling, Reskilling, and Higher 
Learning
• Paid Courses:
 ¾ For serious, already-trained candidates.
 ¾ Bridge to higher skilling institutes with 
mentoring support.
• Role of RSETIs:
 ¾ As hubs of innovation and incubation.
 ¾ Offer accelerator support for scalable 
enterprises.
X. Digital Marketing & Modern Platforms
• Shift from Physical to Online:
 ¾ Emphasis on digital-first marketing 
strategies.
 ¾ Utilisation of WhatsApp, Instagram.
• Marketing Sakhis & Fulfilment Centres:
 ¾ Community Resource Persons trained in 
digital marketing.
 ¾ Localised fulfilment hubs to manage 
logistics.
XI. Conclusion: Towards India@2047
• Vision:
 ¾ Align with the PM’s vision for a Developed 
India by 2047.
• Key Drivers:
 ¾ Scalable and inclusive skilling.
 ¾ Holistic support in training, mentoring, 
credit, and marketing.
• Outcome:
 ¾ Empowered rural youth and women.
 ¾ Thriving rural entrepreneurial ecosystem.
TOPIC 3: ROLE OF MIDDLE CLASS 
LEADING IN INDIA’S PROSPERITY
I. Introduction: Origin and Significance of the 
Middle Class
• Historical Reference:
 ¾ The term “Middle-class” was possibly 
first used by Britisher James Bradshaw in 
1745 to prevent Irish wool from reaching 
France.