Indian Economy News

PMEGP Generates 36.33 Lakh Jobs, Helps Set Up Over Four Lakh Micro-Enterprises

The Prime Minister’s Employment Generation Programme (PMEGP) has generated employment for over 36.33 lakh people and supported the establishment of more than four lakh micro-enterprises across India as of March 31, 2026, according to the Ministry of Micro, Small and Medium Enterprises (MSME). Since its launch in 2008-09, the scheme has played a significant role in promoting self-employment opportunities and strengthening entrepreneurship, particularly in rural and semi-urban areas. PMEGP is implemented by the Khadi and Village Industries Commission (KVIC) at the national level, along with State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs) and District Industries Centres (DICs). The scheme provides margin money subsidies for setting up new micro-enterprises in manufacturing and service sectors, helping boost local economic activity and inclusive growth.

The government has also undertaken several reforms to improve the scheme’s effectiveness and outreach. In recent years, the maximum project cost under PMEGP was enhanced to Rs. 1 crore (US$ 0.11 million) for manufacturing units and Rs. 25 lakh (US$ 0.03 million) for service sector units. The scheme has increasingly supported first-generation entrepreneurs, women-led businesses and enterprises in aspirational districts and border regions. According to the government, PMEGP has contributed significantly to employment generation, rural industrialisation and the formalisation of micro-enterprises across sectors such as food processing, handicrafts, textiles and services. The continued expansion of the programme reflects the government’s focus on strengthening the MSME ecosystem and promoting grassroots entrepreneurship in the country.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.