NEWS – Cabinet Extends PM SVANidhi Scheme Till 2030, Enhances Loan Support

HIGHLIGHTS

Background & Objective

• PM SVANidhi (Pradhan Mantri Street Vendor’s AtmaNirbhar Nidhi) was launched in 2020 during the Covid-19 pandemic to provide affordable working capital loans to street vendors affected by lockdowns.
• The scheme aims at financial inclusion, digital literacy, and social security coverage for urban street vendors.

Key Cabinet Decisions (August 2025)

• Extension: Scheme extended from Dec 31, 2024 to March 31, 2030.
• Loan Enhancement:
  • First tranche: ₹10,000 → ₹15,000
  • Second tranche: ₹20,000 → ₹25,000
  • Third tranche remains at ₹50,000
• Coverage: Expected to benefit 1.15 crore vendors, including 50 lakh new beneficiaries.
• Financial Outlay: ₹7,332 crore; already 96 lakh loans worth ₹13,797 crore disbursed till July 30, 2025.
• Digital Incentives: Cashback of up to ₹1,600 for digital retail/wholesale transactions.
• Implementing bodies: Ministry of Housing & Urban Affairs and Department of Financial Services.

Street Vending in India – The Context

• Estimated 50–60 lakh vendors, mostly migrants in major cities like Delhi, Mumbai, Kolkata, Ahmedabad.
• Accounts for 14% of total non-agricultural urban informal employment.
• Highly gendered—70–80% of street food stalls run by women; caste-class dynamics shape livelihoods.

Legal Framework

• Street Vendors (Protection of Livelihood and Regulation of Street Vending) Act, 2014 ensures:
  • Recognition of vendors’ rights.
  • Regulation of vending zones via Town Vending Committees (implementation still weak in many states).

Challenges

• Poor enforcement of 2014 Act; harassment and eviction persist.
• Limited credit access without collateral.
• Social vulnerabilities: caste, gender, and child labour intersect.