Lok Sabha Question No. 5971 (UNSTARRED), answered on 2017-04-10
Subject: Employment in MSME Sector
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: RAJESH PANDEY, NISHIKANT  DUBEY

## GOVERNMENT OF INDIA MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION NO. 5971 TO BE ANSWERED ON 10.04.2017

## EMPLOYMENT IN MSME SECTOR

## 5971. SHRI RAJESH PANDEY: SHRI NISHIKANT DUBEY:

Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state:

- (a) whether  the  Micro,  Small  and  Medium  Enterprises  (MSMEs)  sector  has  been  playing  an important role in generation of employment in the country;

(b) if so, the details thereof including the funds allocated and the targets fixed by the Government for  generation  of  employment  in  the  MSME  sector  during  the  last  two  years  and  the  current  year, State/UT-wise;

- (c) the extent to which the targets have been achieved during the said period; and
- (d) the  further  steps  taken/being  taken  by  the  Government  to  achieve  the  said  targets  in  a time bound manner?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI GIRIRAJ SINGH)

(a)to(c): Yes,    Madam.    The  government  monitors  the  employment  in  the  MSME  sector  in  the country by conducting All India Census of the sector, periodically. As per the last census (Fourth) of Micro, Small & Medium Enterprises data collected with reference to base year 2006-07, as well as data data extracted from the Economic Census 2005 conducted by Central Statistical Office (CSO), Ministry of  Statistics  &  Programme  Implementation  (MoSPI),  for  activities  excluded  from  Fourth  Census, namely Wholesale/retail trade, legal, educational and social services, hotels & restaurants, Transports and storage & warehousing (except cold storage), the total employment in the MSME sector was 805.24 lakh. The State-wise details of the employment in the MSME sector are given in Annexure I.

Ministry  of  MSME  is  implementing  Prime  Minister's  Employment  Generation  Programme (PMEGP)  which  is  a  major  credit-linked  subsidy  programme  aimed  at  generating  self-employment opportunities through establishment of micro-enterprises in the non-farm sector by helping traditional artisans  and  unemployed  youth.  Any  individual  above  18  years  of  age  is  eligible.  For  setting  up  of projects  costing  above  Rs.10  lakh  in  the  manufacturing  sector  and  above  Rs.  5  lakh  in  the  business /service sector, the beneficiaries should possess at least VIII standard pass educational qualification.

General category beneficiaries can avail of margin money subsidy of 25 % of the project cost in rural areas  and  15%  in  urban  areas.  For  beneficiaries  belonging  to  special  categories  such  as  scheduled caste/scheduled tribe/OBC /minorities/women, ex-serviceman, physically handicapped, NER, Hill and Border areas etc. the margin money subsidy is 35% in rural areas and 25% in urban areas.

The Scheme was launched during 2008-09. A total of 4.23  lakh  micro  enterprises have  been assisted with a margin money subsidy of Rs 8695.27 crore providing employment to an estimated 35.48 lakh persons since PMEGP's inception till 2016-17.

The State/UTwise details of targets fixed, funds allocated, utilized and employment generation under the Scheme during each of the last three years in the country is placed at Annexure-II.

- (d): Following initiatives have been taken to achieve the targets under PMEGP Scheme:
-  In order to streamline the process of application flow and fund flow and to bring in transparency and better financial management and to prevent parking of funds at Nodal bank level an online PMEGP-MIS web portal has been introduced. All applications and fund flow will be processed online in stipulated time frame.
-  Publicity is being  made through print and electronic media, awareness camps at District level and State level are being organized in order to propagate the PMEGP scheme for the development of micro industries.
-  Exhibitions are also conducted at district/state/zone and national level for providing marketing support to the entrepreneurs/units.
-  For  speedy  completion  of  EDP  training,  these  are  being  conducted  through      Departmental Training Centres as well as RSETIs/RUDSETIs as per MOU executed between KVIC & MCR.
-  Industries such as Khadi, processing of Pashmina Wool, handloom and power loom units, value added products  for  tea,  coffee,  rubber  etc.  and  transport  activities  are  now  eligible  for  funding under PMEGP.
-  Implementing  Agencies  are  instructed  to  encourage  and  provide  necessary  assistance  to  the beneficiaries for filing online application by setting up of help desks.

******

Annexure-I Annexure I referred to in reply to part (a) to (c) of the Lok Sabha Unstarred Question No. 5971

## for answer on 10.04.2017

|         | Employment (in Lakh)     | Employment (in Lakh)   | Employment (in Lakh)   | Employment (in Lakh)   | Employment (in Lakh)   |
|---------|--------------------------|------------------------|------------------------|------------------------|------------------------|
| SI. No. | State/UTs                | Registered Sector      | Unregistered Sector    | EC, 2005               | Total                  |
| 1       | JAMMU AND KASHMIR        | 0.9                    | 2.17                   | 2.68                   | 5.75                   |
| 2       | HIMACHAL PRADESH         | 0.65                   | 2.27                   | 1.76                   | 4.68                   |
| 3       | PUNJAB                   | 4.16                   | 14.16                  | 8.48                   | 26.79                  |
| 4       | CHANDIGARH               | 0.12                   | 0.58                   | 0.53                   | 1.23                   |
| 5       | UTTARAKHAND              | 0.8                    | 3.62                   | 2.54                   | 6.96                   |
| 6       | HARYANA                  | 3.82                   | 8.41                   | 6.61                   | 18.84                  |
| 7       | DELHI                    | 0.58                   | 5.94                   | 13.29                  | 19.81                  |
| 8       | RAJASTHAN                | 3.42                   | 15                     | 12.37                  | 30.79                  |
| 9       | UTTAR PRADESH            | 7.55                   | 51.76                  | 33.06                  | 92.37                  |
| 10      | BIHAR                    | 1.48                   | 15.97                  | 10.81                  | 28.26                  |
| 11      | SIKKIM                   | 0.01                   | 0.56                   | 0.22                   | 0.79                   |
| 12      | ARUNACHAL PRADESH        | 0.05                   | 0.82                   | 0.31                   | 1.18                   |
| 13      | NAGALAND                 | 0.16                   | 1                      | 0.54                   | 1.70                   |
| 14      | MANIPUR                  | 0.2                    | 1.38                   | 0.78                   | 2.36                   |
| 15      | MIZORAM                  | 0.26                   | 0.3                    | 0.25                   | 0.81                   |
| 16      | TRIPURA                  | 0.23                   | 0.53                   | 0.99                   | 1.75                   |
| 17      | MEGHALAYA                | 0.13                   | 1.04                   | 0.75                   | 1.92                   |
| 18      | ASSAM                    | 2.11                   | 4.48                   | 7.66                   | 14.25                  |
| 19      | WEST BENGAL              | 3.6                    | 54.93                  | 27.24                  | 85.77                  |
| 20      | JHARKHAND                | 0.75                   | 8.24                   | 3.92                   | 12.91                  |
| 21      | ODISHA                   | 1.73                   | 21.94                  | 9.57                   | 33.24                  |
| 22      | CHHATTISGARH             | 0.75                   | 4.68                   | 4.09                   | 9.52                   |
| 23      | MADHYA PRADESH           | 2.98                   | 17.32                  | 13.36                  | 33.66                  |
| 24      | GUJRAT                   | 12.45                  | 21.97                  | 13.31                  | 47.73                  |
| 25      | DAMAN &DIU               | 0.26                   | 0.03                   | 0.09                   | 0.38                   |
| 26      | DADAR AND NAGAR HAVELI   | 0.26                   | 0.07                   | 0.07                   | 0.40                   |
| 27      | MAHARASHTRA              | 10.89                  | 24.72                  | 34.43                  | 70.04                  |
| 28      | ANDHRA PRADESH           | 3.83                   | 35.15                  | 31.71                  | 70.69                  |
| 29      | KARNATAKA                | 7.89                   | 22.58                  | 16.24                  | 46.71                  |
| 30      | GOA                      | 0.33                   | 0.87                   | 0.68                   | 1.88                   |
| 31      | LAKHSHADWEEP             | 0                      | 0.05                   | 0.02                   | 0.07                   |
| 32      | KERALA                   | 6.21                   | 26.98                  | 16.42                  | 49.61                  |
| 33      | TAMIL NADU               | 14.26                  | 38.89                  | 27.82                  | 80.97                  |
| 34      | PUDUCHERRY               | 0.21                   | 0.25                   | 0.55                   | 1.01                   |
| 35      | ANDAMAN &NICOBAR ISLANDS | 0.06                   | 0.18                   | 0.15                   | 0.38                   |
|         | ALL INDIA                | 93.09                  | 408.84                 | 303.3                  | 805.24                 |

## Annexure II referred to in reply to part (a) to (c) of the Lok Sabha Unstarred Question No. 5971 for answer on 10.04.2017

Target & Achievement of Margin Money under PMEGP

(Rs. in lakh)

| Sr. No.   | State/UT          | 2014-15   | 2014-15   | 2015-16   | 2015-16   | 2016-17   | 2016-17             |
|-----------|-------------------|-----------|-----------|-----------|-----------|-----------|---------------------|
| Sr. No.   | State/UT          | Target    | Achv.     | Target    | Achv.     | Target    | Achv. (Provisional) |
| 1.        | J&K               | 2919.50   | 3274.63   | 4006.80   | 3781.19   | 3541.26   | 2621.40             |
| 2.        | Himachal Pradesh  | 1687.45   | 2237.73   | 1721.57   | 1767.26   | 1970.11   | 2185.27             |
| 3.        | Punjab            | 2711.49   | 3190.88   | 3026.80   | 2902.97   | 3504.09   | 3181.60             |
| 4.        | Chandigarh        | 287.99    | 61.46     | 90.00     | 87.72     | 100.00    | 82.84               |
| 5.        | Haryana           | 2716.36   | 3012.98   | 3747.40   | 3112.09   | 3371.31   | 3383.53             |
| 6.        | Delhi             | 1061.04   | 189.24    | 257.35    | 254.05    | 300.00    | 182.41              |
| 7.        | Rajasthan         | 5369.78   | 5249.62   | 4188.14   | 4384.07   | 5500.99   | 4641.60             |
| 8.        | Uttarakhand       | 1882.35   | 2153.32   | 1909.93   | 1740.86   | 2140.93   | 2122.33             |
| 9.        | Uttar Pradesh     | 13339.41  | 16937.53  | 17535.32  | 14456.87  | 12981.52  | 14271.05            |
| 10.       | Chhattisgarh      | 3474.41   | 2045.68   | 4303.8    | 2829.38   | 4493.30   | 4070.73             |
| 11.       | Madhya Pradesh    | 8182.74   | 9241.70   | 7729.40   | 8117.17   | 8527.32   | 8346.06             |
| 12.       | Sikkim            | 541.34    | 33.52     | 227.38    | 186.11    | 200.00    | 35.93               |
| 13.       | Arunachal Pradesh | 1793.42   | 1004.99   | 200.08    | 38.85     | 500.00    | 440.34              |
| 14.       | Nagaland          | 1563.64   | 878.59    | 1255.83   | 1392.81   | 1751.68   | 2007.48             |
| 15.       | Manipur           | 1403.65   | 1600.76   | 2855.92   | 1213.98   | 1741.70   | 2162.78             |
| 16.       | Mizoram           | 1043.39   | 807.98    | 924.99    | 1026.35   | 1253.49   | 491.96              |
| 17.       | Tripura           | 985.02    | 1333.65   | 2748.26   | 945.84    | 1578.62   | 3734.66             |
| 18.       | Meghalaya         | 1184.79   | 971.14    | 1250.62   | 1056.12   | 1748.10   | 407.89              |
| 19.       | Assam             | 5388.75   | 5397.01   | 4969.87   | 2869.74   | 5636.41   | 4910.36             |
| 20.       | Bihar             | 8277.14   | 4111.32   | 7118.59   | 6588.55   | 6909.77   | 8336.51             |
| 21.       | West Bengal       | 4396.32   | 6010.11   | 4765.49   | 3400.65   | 3680.30   | 6270.32             |
| 22.       | Jharkhand         | 4547.06   | 2871.29   | 3462.64   | 3559.74   | 4165.73   | 2654.35             |
| 23.       | Odisha            | 5621.47   | 3945.89   | 6282      | 5736.32   | 5201.65   | 6848.96             |
| 24.       | A &NIslands       | 593.09    | 92.32     | 158.00    | 65.11     | 100.00    | 193.46              |
| 25.       | Gujarat           | 4346.72   | 6200.52   | 6536.16   | 6339.73   | 5398.45   | 7561.61             |
| 26.       | Maharashtra       | 6299.38   | 7843.81   | 9718.42   | 5285.03   | 6111.30   | 6001.36             |
| 27.       | Goa               | 466.91    | 141.76    | 159.40    | 165.43    | 371.62    | 191.44              |
| 28.       | Andhra Pradesh    | 2667.87   | 3492.11   | 4496.85   | 2262.37   | 2336.58   | 4916.08             |
| 29.       | Telangana         | 1954.44   | 1889.35   | 2094.00   | 2217.57   | 2004.86   | 2561.72             |
| 30.       | Karnataka         | 4512.99   | 6479.10   | 10846.89  | 5898.01   | 4941.62   | 11609.56            |
| 31.       | Lakshadweep       | 704.68    | 28.61     | 90.00     | 0.00      | 50.00     | 0.00                |
| 32.       | Kerala            | 2306.51   | 2679.28   | 2731.60   | 2720.48   | 2446.06   | 3350.68             |
| 33.       | Tamilnadu         | 4974.91   | 6733.89   | 7110.80   | 5497.54   | 5291.23   | 8213.92             |
| 34.       | Puducherry        | 100.00    | 112.10    | 100.00    | 106.37    | 150.00    | 103.65              |
|           | Total             | 109306.01 | 112253.87 | 128620.30 | 102006.33 | 110000.00 | 128093.84           |

Target & Achievement of Employment under PMEGP

| Sr. No.   | State/UT     | 2014-15   | 2014-15   | 2015-16   | 2015-16   | 2016-17   | 2016-17             |
|-----------|--------------|-----------|-----------|-----------|-----------|-----------|---------------------|
| Sr. No.   | State/UT     | Target    | Achv.     | Target    | Achv.     | Target    | Achv. (Provisional) |
| 1.        | J&K          | 20648     | 11025     | 16026     | 12115     | 14168     | 11691               |
| 2.        | H.P          | 11664     | 6352      | 6888      | 5134      | 7880      | 6916                |
| 3.        | Punjab       | 18692     | 6438      | 12104     | 7762      | 14016     | 9858                |
| 4.        | Chandigarh   | 1592      | 160       | 720       | 323       | 800       | 376                 |
| 5.        | Haryana      | 19408     | 7024      | 14992     | 7232      | 13488     | 11016               |
| 6.        | Delhi        | 7880      | 1584      | 1032      | 2048      | 1200      | 952                 |
| 7.        | Rajasthan    | 35160     | 15002     | 16752     | 14537     | 22000     | 13408               |
| 8.        | Uttarakhand  | 12864     | 7889      | 7640      | 6161      | 8560      | 9890                |
| 9.        | U.P          | 82784     | 48604     | 70144     | 43059     | 51928     | 36315               |
| 10.       | Chhattisgarh | 21488     | 5821      | 17215     | 9496      | 17976     | 12856               |
| 11.       | Madhya P     | 53472     | 21896     | 30920     | 16497     | 34112     | 15520               |
| 12.       | Sikkim       | 3800      | 54        | 912       | 397       | 800       | 201                 |
| 13.       | Arunachal P  | 13616     | 2871      | 800       | 104       | 2000      | 1984                |
| 14.       | Nagaland     | 10768     | 2407      | 5024      | 4998      | 7008      | 7783                |
| 15.       | Manipur      | 9328      | 829       | 11424     | 2715      | 6968      | 8419                |
| 16.       | Mizoram      | 7432      | 6736      | 3696      | 9072      | 5016      | 3400                |
| 17.       | Tripura      | 5680      | 6333      | 10992     | 5355      | 6312      | 17961               |
| 18.       | Meghalaya    | 7656      | 3680      | 5000      | 4824      | 6992      | 2632                |
| 19.       | Assam        | 32984     | 15535     | 19880     | 9026      | 22544     | 31498               |
| 20.       | Bihar        | 49352     | 9240      | 28472     | 19624     | 27640     | 25872               |
| 21.       | West Bengal  | 25392     | 24646     | 19064     | 12746     | 14720     | 26604               |
| 22.       | Jharkhand    | 28288     | 8495      | 13848     | 12873     | 16664     | 10400               |
| 23.       | Odisha       | 35096     | 10211     | 25128     | 17629     | 20808     | 20392               |
| 24.       | A &NIslands  | 3640      | 790       | 1264      | 293       | 800       | 1398                |
| 25.       | Gujarat      | 28520     | 18107     | 26144     | 14960     | 21592     | 11629               |
| 26.       | Maharashtra  | 40216     | 28311     | 38879     | 20161     | 24448     | 17799               |
| 27.       | Goa          | 2728      | 406       | 640       | 500       | 1488      | 660                 |
| 28.       | A.P          | 16192     | 12220     | 17984     | 7740      | 9344      | 14148               |
| 29.       | Telangana    | 12040     | 6604      | 8376      | 7761      | 8016      | 6445                |
| 30.       | Karnataka    | 29984     | 21825     | 43384     | 17284     | 19768     | 30286               |
| 31.       | Lakshadweep  | 3360      | 93        | 720       | 0         | 400       | 00                  |
| 32.       | Kerala       | 14608     | 9738      | 10928     | 9653      | 9784      | 13068               |
| 33.       | Tamilnadu    | 32480     | 36190     | 28440     | 20836     | 21160     | 25764               |
| 34.       | Puducherry   | 4680      | 386       | 800       | 447       | 1200      | 699                 |
|           | Total        | 703492    | 357502    | 516232    | 323362    | 441600    | 407840              |