PM SVANidhi: An idea that lays down a model for marginal vendors to go formal

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₹1.5 lakh and ₹1 lakh, respectively. As a broad observation, street vendors in states/UTs where they are in high concentration earn less than those who operate in states/UTs where they show lower density but form a larger share of the workforce. In such a scenario, PM SVANidhi offers crucial support by facilitating financial access, regardless of the market conditions in their regions.

The scheme was launched by the Centre in 2020 to provide collateral-free working capital loans to street vendors whose livelihoods were impacted by pandemic lockdowns. The principal objective was to help them resume their businesses, but it was also designed to reward digital transactions even as it incentivized regular repayments. In a span of four years, the scheme has sanctioned ₹12,739.6 crore worth of loans to 6.5 million beneficiaries from a pool of 11.2 million applicants.

This is quite commendable. In addition, the recent 2024 budget discussion on developing 100 weekly street markets in selected cities is another step towards integrating street vendors into the formal economy. These initiatives highlight their potential to increase their economic contribution with adequate support.

While the PM SVANidhi scheme has done well to empower street vendors, it also illustrates complexities in addressing their problems and implementing solutions. Potential beneficiaries lack awareness of it and efforts to reach out to all who could benefit should be stepped up. Proper identification of street vendors is a critical step towards enhancing the PM SVANidhi’s scheme’s success.