PMEGP and Entrepreneurship Development in India: An Analysis of Subsidy Utilization and Employment Generation

Abstract

The Prime Minister’s Employment Generation Programme  has played a significant role in shaping India’s entrepreneurial landscape by generating employment opportunities at the grassroots level, reducing poverty, promoting entrepreneurship, and strengthening the rural economy. This study analyses the performance of PMEGP in India using secondary data collected from publications since the inception of the programme. The study examines state-wise project assistance, margin money subsidy disbursement, and employment generation. The analysis reveals considerable inter-state variations in the number of projects assisted, margin money subsidy utilized, and employment generated. The findings indicate a substantial increase in both margin money subsidy disbursed and employment opportunities created under PMEGP during the period from 2008-09 to 2023-24, reflecting the growing effectiveness of the scheme in promoting self-employment and micro-enterprise development. The study further identifies a very significant positive relationship between margin money subsidy utilized and employment generated. PMEGP significantly supported women entrepreneurship, although a decline were observed in the recent year.The study provides valuable insights for policymakers, researchers, and practitioners seeking to strengthen employment-oriented entrepreneurship programmes and promote inclusive economic development in India.