Paper short abstract:

This paper assesses the outreach, impact and challenge associated with PMSY in three cities of India. The study adopted mixed- method approach. Findings show that a scheme like the PMSY has much potential for improving informal workers’ livelihood and food security. It provides renewed basis for the role of social protection and state intervention towards the welfare of the poor in general.

Paper long abstract:

Research context

Covid-19 restrictions generally impacted urban livelihood activities more harshly (Welsch 2021). This impact was more direct for street vendors, because their livelihoods entirely comes from mobility- both of vendors and their customers, in the streets. As an attempt to reign in Covid-19 spread, sudden lockdown was announced in India in March 2020 and mobilities were the first things to be disbanded. Coping against and recovering from the crisis became a major challenge for these workers ( Chen et al 2022, Sisay et al 2021. It was in this context that the Prime Minister Svanidhi Yojna (PMSY) was launched by the Government of India upon advocacy from the National Association of Street Vendors in India (NASVI). A nationwide scheme, PMSY is designed to provide collateral free working capital loan up to Rupess`10,000 to street vendors. Upon timely repayment, the vendors will be eligible for the next cycle of working capital loan with an enhanced limit. As reported by the Press Information Bureau (PIB 2022) of Government of India, as on March 24, 2022, a credit of ₹3,170 crore was disbursed to 29.1 lakh beneficiaries. To assess the outreach, impact and challenges of PMSY, NASVI conducted a study in three cities in India. This paper is an outcome of that study.

Methodology

The study adopted mixed- method approach. On the whole, 1088 street vendors including 793 males and 295 female street vendors were surveyed for quantitative data collection in 2022. The sample covered three cities- Patna and Bhagalpur in Bihar and Dhanbad in Jharkhand. For the qualitative part of the study, in depth ethnographic interviews were conducted with twenty street vendors randomly selected from different markets.

Analysis and conclusion

Findings from quantitative data show that PMSY has limited outreach. Although majority of street vendors in all three cities heard of PMSY, only 39.7 % of them applied for a loan and 18.5 % received the loan under the scheme. Where the scheme reached, it was effective in terms of addressing livelihood and food security concerns of street vendor. Most street vendors used the loan to reinvest in existing trade, create inventories and expand business. This in turn, has improved their earning as well as household food security. Around 50% of the beneficiaries stated that they found themselves better than those street vendors who did not receive a loan under PMSY. Around 60% of the beneficiary street vendors in all the three cities agreed that PMSY loan proved helpful in addressing their household’s food security concerns and they never slept empty stomach because of that. Noticeably, greater proportion of female beneficiaries reported benefits from PMSY and to a greater extent. Among street vendors, it is the educated who is overrepresented among the beneficiaries.

Findings from ethnographic interviews reflected lived experiences of selected street vendors. The pandemic was an immediate shock but had long term consequences for the vendors. Their livelihood was characterized by uncertainty and worry whereas lesser quantity, fewer varieties and absence of nutrition defined their food insecurity experience. Personal savings and kith and kin were the first who most vendors relied on during the crisis, followed by local government and civil society. With some hassle and some benefits, PMSY proved to be a silver lining for the beneficiaries. PMSY loan was used in expansion/revival of existing trade, which enhanced livelihood, earning and food security to some extent among the street vendors. An interesting finding from interviews was that it brought into light the expectation that the poor have from the government and the trust they repose in it. They find the government responsible for extending support not just from a material but also from a moral perspective. In context of coping with Covid-19, the state seems to have been the most prominent actor, both in terms of actual role as well as in public imagination. In the words of a female vendor “Family should help…But Government will definitely help”. Initiation of PMSY strengthened this notion and as expressed by some of the interviewees there was renewed faith reposed in the government.

The study also captured street vendors’ opinion on the challenges they faced in accessing the PMSY. Although many beneficiaries were supported by municipal bodies and vendors’ association in availing the scheme, the process appeared to be cumbersome and time-taking for them. It was challenge for street vendors to deal with banks and that’s why it is the educated who could access the scheme more. Very small proportion of street vendors applied for second phase of loan, again due to technical handicaps in the process. the outreach of PMSY is low, especially in Bhagalpur. Outreach and access of PMSY was the highest in Dhanbad. However, the data shows that most of the street vendors who availed scheme benefitted substantially from the PMSY loan, despite reported accessibility challenges. Additionally, street vendors now look forward to continued support from the government. A scheme like the PMSY has much potential in terms of improving informal street vendors’ livelihood and food security, especially during the times of disaster like Covid-19. PMSY in fact, provides renewed basis for the role of social protection and state intervention towards the welfare of the poor in general and street vendors in particular.