A concrete products manufacturer in Bhagalpur, Bihar, has credited two Central government schemes — the PM Mudra Yojana and the Prime Minister's Employment Generation Programme (PMEGP) — for enabling him to build and scale his enterprise, generating local employment in the process. The account offers a ground-level view of how federal welfare financing is playing out in one of Bihar's major urban centres.

From a ₹5 Lakh Loan to a Growing Manufacturing Unit

Rajeev Pradeep, who runs a concrete products manufacturing unit in Bhagalpur, availed his first loan of ₹5 lakh under the PM Mudra Yojana in 2021. Buoyed by early business growth, he subsequently secured a larger loan of ₹30 lakh under PMEGP in 2024. The capital allowed him to manufacture pavers, chequered tiles, and RCC benches — products with steady demand in urban infrastructure projects.

'In the beginning, we took advantage of Prime Minister Narendra Modi's Mudra Yojana. The work improved, and later, through PMEGP, we received a substantial loan. Today, we are in a strong position and doing good work. Many workers are associated with me, and they are also benefiting through these schemes,' Rajeev said.

Workers Also Benefit from Welfare Initiatives

Rajeev noted that workers employed at his unit have also accessed government welfare programmes, including the Ujjwala Yojana, which provides subsidised LPG connections to low-income households. He highlighted the government's direct benefit transfer (DBT) system as a key enabler, saying it has eliminated intermediaries and ensured timely, discrimination-free disbursement of funds directly into beneficiaries' bank accounts.

'Now there is no role for middlemen. The money comes directly into our accounts,' he said, crediting the system's efficiency as a meaningful improvement over earlier delivery mechanisms.

Infrastructure Push Reshaping Bhagalpur

Beyond his own enterprise, Rajeev pointed to broader infrastructure development as evidence of regional progress. He cited ongoing work on a four-lane road, a marine drive, airport-related projects, Greenfield Road construction, and the Ganga bridge as visible indicators of Bhagalpur's transformation. 'Bhagalpur is changing rapidly, and there is much more to come,' he said.

This comes amid the Modi government marking 12 years in office, with the ruling dispensation increasingly highlighting grassroots success stories from its flagship schemes as part of its outreach narrative. PM Mudra Yojana, launched in 2015, has disbursed loans to millions of micro-entrepreneurs nationally; PMEGP, administered through the Khadi and Village Industries Commission (KVIC), targets employment creation in rural and semi-urban areas.

Broader Context

Bihar remains one of India's lower-income states, and access to formal credit has historically been a significant barrier for small entrepreneurs in districts like Bhagalpur. Accounts such as Rajeev's reflect the stated intent of collateral-free lending schemes, though independent assessments of aggregate employment outcomes under PMEGP and Mudra have produced varied findings. As of recent government data, PM Mudra Yojana has cumulatively sanctioned loans worth several lakh crore rupees since inception, with a significant share directed at first-generation entrepreneurs.

Whether individual success stories translate into measurable district-level employment gains remains a question that policy researchers continue to examine.