Tourism Entrepreneurship and Financial Inclusion in India: Assessing the Role of Pradhan Mantri Mudra Yojana During 2015-2025

Abstract

Tourism entrepreneurship plays a vital role in promoting employment generation, regional development, and inclusive economic growth in India. However, inadequate access to institutional finance remains a major challenge for micro and small tourism enterprises. This study examines the role of the Pradhan Mantri Mudra Yojana (PMMY) in promoting tourism entrepreneurship through financial inclusion during the period 2015-2025. The study is based entirely on secondary data collected from government publications, including the Department of Financial Services, MUDRA Ltd., the Ministry of Tourism, the Reserve Bank of India, and relevant peer-reviewed literature. A descriptive and analytical research design was adopted using trend analysis, comparative analysis, and documentary review. The findings indicate that PMMY has substantially expanded collateral-free institutional credit to micro-enterprises, thereby creating financial opportunities for tourism-related businesses such as homestays, restaurants, travel agencies, transport services, and handicraft enterprises. Although official PMMY statistics do not provide sector-wise information on tourism enterprises, the scheme's broad eligibility framework suggests an indirect contribution to tourism entrepreneurship through enhanced financial inclusion. The study concludes that PMMY has strengthened the entrepreneurial ecosystem by improving access to formal finance and recommends better sector-specific data reporting and stronger coordination between financial institutions and tourism authorities to enhance policy effectiveness.