The Ministry of Micro, Small and Medium Enterprises flagship scheme, the Prime Minister’s Employment Generation Programme (PMEGP), implemented through the Khadi and Village Industries Commission (KVIC), continues to play a pivotal role in promoting entrepreneurship and employment generation across the country.

PMEGP supports prospective entrepreneurs in establishing new micro-enterprises in the non-farm sector by providing Margin Money (MM) subsidy on bank loans. The scheme primarily aims to create self-employment opportunities for first-generation entrepreneurs and promote sustainable livelihoods in the manufacturing and services sectors, especially in rural areas.

Strong Performance During the 15th Finance Commission Cycle

During the 15th Finance Commission cycle (FY 2021–22 to FY 2025–26), PMEGP has demonstrated robust performance, reaffirming its contribution to strengthening India’s micro-enterprise ecosystem.

Against an approved budgetary outlay of ₹13,554.42 crore, the scheme achieved full utilization of funds and facilitated the establishment of 4,03,706 micro-enterprises, surpassing the target of 4,02,000 enterprises. This achievement reflects effective implementation and sustained demand for entrepreneurship-led initiatives.

The programme also generated sustainable employment opportunities for approximately 36.33 lakh individuals, significantly contributing to livelihood creation and grassroots economic development across the country.

Inclusive Growth and Rural Outreach

PMEGP has continued to promote inclusive development through targeted support to women and socially disadvantaged communities.

• Women beneficiaries account for nearly 40% of the total micro-enterprises assisted under the scheme.
• Around 45% of the total Margin Money subsidy disbursed has been provided to women entrepreneurs, encouraging women-led enterprises.
• Approximately 54% of the beneficiaries belong to SC/ST/OBC categories, highlighting the scheme’s strong focus on social inclusion.
• Nearly 80% of the enterprises established under PMEGP are located in rural areas, supporting rural industrialization and balanced regional development.

Driving Self-Reliance and Grassroots Entrepreneurship

The achievements during the 15th Finance Commission cycle reaffirm PMEGP’s role as a key driver of micro-enterprise development and employment generation in India. By facilitating access to credit-linked subsidies and fostering entrepreneurship at the grassroots level, the scheme continues to contribute significantly to inclusive economic growth and the vision of self-reliant India.

The Ministry remains committed to further strengthening PMEGP in the forthcoming cycle with an enhanced focus on innovation, scalability, and wider outreach.

***

Sunil Kumar Tiwari