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On Government's Claims Of Creating 7 Crore Jobs, A Fact Check -Sreenivasan Jain and Manas Pratap Singh

-NDTV

The government's reliance on the MUDRA scheme of lending to small businesses to create jobs has not had the kind of result being advertised.

New Delhi:
Facing heat for not being able to back its promises of job creation, the Centre and the BJP have repeatedly cited the success of its MUDRA scheme, an acronym for Micro Units Refinance and Development Agency, meant to promote lending to small businesses.

Speaking earlier this month, BJP President Amit Shah said that in the two years since MUDRA has been in existence, 7.28 crore people have become self-employed. Separately, he said these small entrepreneurs received loans worth more than Rs. 3.17 lakh crore. (MUDRA offers loans starting at Rs. 50,000 and capped at Rs. 10 lakhs.)

Seven crore new jobs being created in 2 years is a staggering claim; it would effectively suggest the government has created more than three times the estimated number of new jobseekers - 1.2 crores - entering the job market every year.

These claims fly in the face of data as well popular sentiment, both of which indicate a far less rosy picture of job creation.

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