Why in news?
A recent release from the Ministry of Micro, Small and Medium Enterprises (MSME) announced that the Prime Minister’s Employment Generation Programme exceeded its target for the 15th Finance Commission cycle (FY 2021–22 to FY 2025–26). Over 4.03 lakh new micro‑enterprises were set up under the scheme, creating more than 36 lakh jobs across India.
Background
PMEGP is a credit‑linked subsidy programme launched in 2008 to promote self‑employment through micro‑industries in rural and urban areas. It is implemented by the Khadi and Village Industries Commission (KVIC) in partnership with state and district agencies. The scheme offers financial assistance, including margin money subsidies, to first‑time entrepreneurs who set up manufacturing or service units. Training in business planning and market linkage is also provided.
Key achievements and features
- Jobs created: During the current finance commission cycle, PMEGP facilitated the establishment of 4.03 lakh micro‑enterprises and generated around 36.33 lakh jobs. The total expenditure was about ₹13,554 crore.
- Inclusive growth: Nearly 40% of enterprises are run by women, and 45% of the subsidy has gone to women entrepreneurs. Around 54% of beneficiaries belong to SC/ST/OBC categories. Rural areas account for more than 80% of the units.
- Target sectors: Beneficiaries establish diverse businesses such as food processing, handicrafts, leather goods, repair services and digital services. The scheme caps project costs at ₹50 lakh for manufacturing and ₹20 lakh for service units.
- Ongoing reforms: The government is integrating PMEGP with online portals for faster approvals and emphasising regular monitoring to reduce defaults. Banks and KVIC officials conduct field inspections to ensure that units remain operational.
Sources
PIB.