According to a study published in New Delhi by the SKOCH Group, "ModiNomics" has significantly impacted the creation of jobs, as seen by the 5.14 crore person-years of employment that have been created on average every year since 2014.

"Employment Generative Impact of ModiNomics: The Paradigm Shifts" is the sixth report in the series "Outcomes of ModiNomics 2014-24: A Report Card," which examines government- and credit-led initiatives conducted during this time.

According to the report's author and chairman of the SKOCH Group, Sameer Kochhar, government-led interventions added 1.98 crore jobs yearly, compared to an average of 3.16 crore employment from credit-led interventions. The study offers important insights into the employment-generating potential of structural credit and government programmes and is based on project-level data as well as field research.

By highlighting the efficiency of microloans in generating consistent and stable work possibilities, the study dispelled the notion that tiny amounts of credit cannot create employment.

Kochhar said, “The report provides research-based evidence spread over several years on how credit-led employment and government schemes-led employment have both significantly added to employment since 2014.”

SKOCH has been a votary of credit-led employment generation since 2000. Most of the work by SKOCH has been in the domain of financial inclusion. “I have argued for credit-linked livelihoods from time and again. I propounded the SKOCH Model of Inclusive Growth in 2009, that for the first time, focused on the need for micro-products including credit, insurance and pensions,” added Kochhar.

Additionally, case examples illustrating the beneficial effects of microloans on the creation of jobs were included in the paper.

It was discovered during field visits to borrowers in four states that there are, on average, 6.6 jobs created for every loan. The study also assessed the employment produced by 12 central programmes, such as PMGSY, PMAY-G, and MGNREGA, between 2014 and 24.