Model Answer

Inclusive growth has been a central objective of India’s development strategy, particularly for historically disadvantaged communities such as Scheduled Castes (SCs), Scheduled Tribes (STs), Other Backward Classes (OBCs), and other marginalized groups. In this context, the Pradhan Mantri Samajik Utthan evam Rozgar Adharit Jankalyan (PM-SURAJ) Portal, launched in 2024 by the Ministry of Social Justice and Empowerment, seeks to institutionalize credit access for underprivileged entrepreneurs through a centralized digital platform. It represents a shift from welfare-based assistance to empowerment through enterprise development.

Significance of PM-SURAJ Portal

1. Advancing Social Justice and Constitutional Mandate The portal aligns with Article 38 (promotion of welfare of the people) and Article 46 (promotion of educational and economic interests of SCs, STs, and weaker sections). By targeting marginalized communities, it operationalizes the principle of substantive equality—ensuring not just formal equality but equitable access to economic opportunities.

2. Deepening Financial Inclusion One of the major barriers faced by disadvantaged communities is limited access to formal credit due to lack of collateral, poor credit history, and informational asymmetry. PM-SURAJ addresses this by:

• Providing business loans up to ₹15 lakh at concessional interest rates.
• Enabling direct benefit transfer to bank accounts, reducing leakages.
• Facilitating credit through banks, NBFC-MFIs, and specialized government corporations such as NSFDC, NSKFDC, and NBCFDC. By formalizing credit access, it reduces dependence on informal moneylenders and promotes integration into the formal financial ecosystem.

3. Digital Governance and Ease of Access The portal functions as a centralized digital interface where beneficiaries can apply for and track multiple credit schemes. This ensures:

• Transparency in application and approval processes.
• Reduction in bureaucratic discretion and middlemen.
• Real-time monitoring and grievance redressal potential. Such digital integration supports the broader vision of Digital India and enhances administrative efficiency.

4. Promoting Entrepreneurial Ecosystem Unlike traditional subsidy-based schemes, PM-SURAJ focuses exclusively on new business startups, encouraging first-generation entrepreneurship. This has several multiplier effects:

• Job creation at the local level.
• Asset formation within marginalized communities.
• Reduction in inter-generational poverty. By aiming to extend assistance to one lakh entrepreneurs, the scheme can contribute to grassroots-level economic dynamism.

5. Convergence with Broader Development Goals PM-SURAJ complements initiatives such as Stand-Up India, Mudra Yojana, and Skill India, thereby strengthening India’s MSME ecosystem. It also supports SDG Goals 1 (No Poverty), 8 (Decent Work and Economic Growth), and 10 (Reduced Inequalities).

Challenges

Despite its transformative potential, certain challenges remain:

• Digital Divide: Marginalized communities may lack digital literacy or access to internet services.
• Credit Risk and Repayment Issues: First-time entrepreneurs may face market uncertainties.
• Awareness Gaps: Information dissemination in rural and remote areas may be limited.
• Limited Scope: Currently restricted to new businesses; expansion to scaling existing micro-enterprises could enhance impact.

The PM-SURAJ Portal marks a significant step in transforming welfare beneficiaries into wealth creators. By leveraging digital governance and targeted credit support, it advances financial inclusion and social justice. If implemented effectively with complementary institutional support, it can become a powerful instrument for inclusive entrepreneurship and equitable economic development in India.