Lok Sabha Question No. 3111 (UNSTARRED), answered on 2019-07-11
Subject: Employment Generation under MSME Sector
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Rahul Kaswan, Nalin Kumar Kateel, Ajay (Teni) Misra, Chandra Sekhar Sahu

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

## LOK SABHA UNSTARRED QUESTION No. †3111 TO BE ANSWERED ON 11.07.2019

## EMPLOYMENT GENERATION UNDER MSME SECTOR

† 3111.

SHRI RAHUL KASWAN: SHRI NALIN KUMAR KATEEL: SHRI AJAY MISRA TENI: SHRI CHANDRA SEKHAR SAHU:

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

- (a) whether Micro, Small and Medium Enterprises (MSMEs) sector has emerged as a highly vibrant  and  dynamic  sector  of  the  Indian  economy  and  has  immense  potential  in  employment generation and if so, the details thereof;
- (b) whether large number of employment opportunities are created with use of relatively less capital in the MSME sector and if so, the details thereof, State-wise;
- (c) whether there is ambiguity on the data of employment generated through MSME sector, if so, the facts thereof;
- (d) the number of jobs created in MSME sector during the last three years including the current year, year-wise and target set to create more jobs jobs and its likely impact of MSMEs;
- (e) whether the Government is taking any measures to make the MSMEs a major attraction for investment and job creation in the country and if so, the response of the Government in this regard;
- (f) whether to boost the MSME sector, a separate policy and sector-wise policy is required and if so, the steps taken by the Union Government to frame separate policy and sector-wise policy to boost the MSMEs; and
- (g) whether the sector is resolving the problem of lending from the banking sector and if so, the details thereof?

## ANSWER

## MINISTER OF MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI NITIN GADKARI)

(a): Yes.  As  per  the  73 rd Round  of  National  Sample  Survey  (NSS),  conducted  by  National Sample Survey Office, Ministry of Statistics & Programme Implementation during the period 201516,  the  estimated  number  of  workers  in  unincorporated  non-agriculture  MSMEs  in  the  country engaged in different economic activities excluding the MSMEs registered under (a) Sections 2m(i) and  2m(ii)  of  the  Factories  Act,  1948,  (b)  Companies  Act,  1956  and  (c)  Construction  activities falling under Section F of National Industrial Classification (NIC), 2008, are 11.10 crore.

Under the Prime Minister's Employment  Generation Programme (PMEGP,) the  estimated employment generated (number of persons) in micro enterprises during the years 2014-15, 2015-16, 2016-17, 2017-18 and 2018-19 are 3.58 lakhs, 3.23 lakhs, 4.08 lakhs, 3.87 lakhs and 5.87 lakhs, respectively.

- (b) to (d): The large number of employment opportunities are created with use of relatively less capital in the MSME sector. Ministry of Micro, Small and Medium Enterprises implements Prime Minister's  Employment  Generation  Programme  (PMEGP),  which  is  a  credit-linked  subsidy programme aimed at generating self-employment opportunities. The State/UT-wise details of Target set for creation of employment opportunities and estimated employment generated through setting up of new micro-enterprises under PMEGP during last three years are given annexure-I.
- (e) & (f): The  Ministry  of  Micro,  Small  and  Medium  Enterprises  (MSMEs)  implements various  schemes  to  boost  MSMEs  and  job  creation  in  the  MSMEs  sector,  which  include  Prime Minister's  Employment  Generation  Programme  (PMEGP),  Micro  and  Small  Enterprises-Cluster Development Programme (MSE-CDP), Scheme for Promotion of MSMEs in North Eastern Region and Sikkim, Tool Rooms and Technology Centers, Mission Solar Charkha (MSC), Scheme of Fund for Regeneration of Traditional Industries (SFURTI), Procurement and Marketing Support Scheme, Entrepreneurship Skill Development Programme (ESDP), Credit Guarantee Scheme for Micro and Small Enterprises (MSEs) and Credit Linked Capital Subsidy and Technology Upgradation Scheme (CLCS-TUS).
- (g): As per the data  received  from  the  Reserve  Bank  of  India  (RBI),  the  outstanding  credit  to Micro, Small and Medium Enterprise (MSME) sector by all Scheduled Commercial Banks during the last three years has increased. The credit flow to MSME sector by all Scheduled Commercial Banks during the last 3 years is given below:

| Year ended            | Amount Outstanding (in Rs. Crore)   |
|-----------------------|-------------------------------------|
| March 2017            | 1070129.48                          |
| March 2018 1149353.83 |                                     |
| March 2019            | 1497687.10                          |

The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) was launched by the Government of India to make available collateral-free credit to the micro and small enterprise sector. The number and amount of Guarantees approved under the CGTMSE during the last 2 years is given below:

| Year    |   No. of Credit Facilities Approved (in lakhs) |   Amount of Guarantees Approved ( in Rs. crore) |
|---------|------------------------------------------------|-------------------------------------------------|
| 2017-18 |                                           2.63 |                                         19065.9 |
| 2018-19 |                                           4.36 |                                         30168.6 |

This has also helped in better credit flow to the micro and small enterprises.

****

Annexure referred to in reply to part (b) to  (d) of Lok Sabha Unstarred Question No. †3111 for answer on 11.07.2019.

## STATE/UT-WISE   JOB   CREATED   UNDER   PMEGP

(Jobs in No.)

| EMPLOYMENT - TARGET SET AND ACHIEVEMENT UNDER PMEGP DURING LAST THREE YEARS   | EMPLOYMENT - TARGET SET AND ACHIEVEMENT UNDER PMEGP DURING LAST THREE YEARS   | EMPLOYMENT - TARGET SET AND ACHIEVEMENT UNDER PMEGP DURING LAST THREE YEARS   | EMPLOYMENT - TARGET SET AND ACHIEVEMENT UNDER PMEGP DURING LAST THREE YEARS   | EMPLOYMENT - TARGET SET AND ACHIEVEMENT UNDER PMEGP DURING LAST THREE YEARS   | EMPLOYMENT - TARGET SET AND ACHIEVEMENT UNDER PMEGP DURING LAST THREE YEARS   | EMPLOYMENT - TARGET SET AND ACHIEVEMENT UNDER PMEGP DURING LAST THREE YEARS   | EMPLOYMENT - TARGET SET AND ACHIEVEMENT UNDER PMEGP DURING LAST THREE YEARS   |
|-------------------------------------------------------------------------------|-------------------------------------------------------------------------------|-------------------------------------------------------------------------------|-------------------------------------------------------------------------------|-------------------------------------------------------------------------------|-------------------------------------------------------------------------------|-------------------------------------------------------------------------------|-------------------------------------------------------------------------------|
| Sr. No.                                                                       | State/Union Territories                                                       | 2016-17                                                                       | 2016-17                                                                       | 2017-18                                                                       | 2017-18                                                                       | 2018-19 ( Provisional)                                                        | 2018-19 ( Provisional)                                                        |
| Sr. No.                                                                       | State/Union Territories                                                       | Target                                                                        | Achievement                                                                   | Target                                                                        | Achievement                                                                   | Target                                                                        | Achievement                                                                   |
| 1                                                                             | Chandigarh UT                                                                 | 800                                                                           | 376                                                                           | 800                                                                           | 360                                                                           | 768                                                                           | 224                                                                           |
| 2                                                                             | Delhi                                                                         | 1200                                                                          | 952                                                                           | 800                                                                           | 920                                                                           | 936                                                                           | 1056                                                                          |
| 3                                                                             | Haryana                                                                       | 13488                                                                         | 11016                                                                         | 15088                                                                         | 13744                                                                         | 15392                                                                         | 17320                                                                         |
| 4                                                                             | Himachal Pradesh                                                              | 7880                                                                          | 6916                                                                          | 7144                                                                          | 7088                                                                          | 8832                                                                          | 11192                                                                         |
| 5                                                                             | Jammu& Kashmir                                                                | 6168                                                                          | 11691                                                                         | 19088                                                                         | 30024                                                                         | 21128                                                                         | 60232                                                                         |
| 6                                                                             | Punjab                                                                        | 8016                                                                          | 9858                                                                          | 15088                                                                         | 12160                                                                         | 15240                                                                         | 14408                                                                         |
| 7                                                                             | Rajasthan                                                                     | 14000                                                                         | 13408                                                                         | 19640                                                                         | 12616                                                                         | 25536                                                                         | 18872                                                                         |
| 8                                                                             | Chhattisgarh                                                                  | 17976                                                                         | 12856                                                                         | 11264                                                                         | 11704                                                                         | 20920                                                                         | 24752                                                                         |
| 9                                                                             | Madhya Pradesh                                                                | 34112                                                                         | 15520                                                                         | 30352                                                                         | 14432                                                                         | 39448                                                                         | 20208                                                                         |
| 10                                                                            | Uttarakhand                                                                   | 4560                                                                          | 9890                                                                          | 8536                                                                          | 12904                                                                         | 9560                                                                          | 17448                                                                         |
| 11                                                                            | Uttar Pradesh                                                                 | 51928                                                                         | 36315                                                                         | 52632                                                                         | 43456                                                                         | 61040                                                                         | 41944                                                                         |
| 12                                                                            | Arunachal Pradesh                                                             | 2000                                                                          | 1984                                                                          | 2000                                                                          | 1672                                                                          | 2344                                                                          | 2240                                                                          |
| 13                                                                            | Assam                                                                         | 20016                                                                         | 31498                                                                         | 21408                                                                         | 18256                                                                         | 34752                                                                         | 29896                                                                         |
| 14                                                                            | Manipur                                                                       | 7288                                                                          | 8419                                                                          | 5736                                                                          | 4800                                                                          | 8576                                                                          | 10328                                                                         |
| 15                                                                            | Meghalaya                                                                     | 1144                                                                          | 2632                                                                          | 5680                                                                          | 600                                                                           | 8880                                                                          | 3120                                                                          |
| 16                                                                            | Mizoram                                                                       | 2592                                                                          | 3400                                                                          | 3784                                                                          | 1992                                                                          | 7208                                                                          | 8984                                                                          |
| 17                                                                            | Nagaland                                                                      | 8336                                                                          | 7783                                                                          | 10912                                                                         | 7440                                                                          | 9344                                                                          | 9664                                                                          |
| 18                                                                            | Sikkim                                                                        | 344                                                                           | 201                                                                           | 800                                                                           | 296                                                                           | 656                                                                           | 440                                                                           |
| 19                                                                            | Tripura                                                                       | 9072                                                                          | 17961                                                                         | 9136                                                                          | 8928                                                                          | 8584                                                                          | 9432                                                                          |
| 20                                                                            | Andaman& Nicobar Islands                                                      | 800                                                                           | 1398                                                                          | 2000                                                                          | 1744                                                                          | 928                                                                           | 1832                                                                          |
| 21                                                                            | Bihar                                                                         | 27640                                                                         | 25872                                                                         | 22616                                                                         | 18456                                                                         | 35864                                                                         | 26424                                                                         |
| 22                                                                            | Jharkhand                                                                     | 8664                                                                          | 10400                                                                         | 8280                                                                          | 8888                                                                          | 20432                                                                         | 14376                                                                         |
| 23                                                                            | Odisha                                                                        | 28808                                                                         | 20392                                                                         | 19848                                                                         | 19192                                                                         | 25472                                                                         | 24560                                                                         |
| 24                                                                            | West Bengal                                                                   | 22720                                                                         | 26604                                                                         | 13904                                                                         | 10928                                                                         | 20440                                                                         | 19304                                                                         |
| 25                                                                            | Goa                                                                           | 1488                                                                          | 660                                                                           | 792                                                                           | 400                                                                           | 1992                                                                          | 624.00                                                                        |
| 26                                                                            | Gujarat *                                                                     | 29592                                                                         | 11629                                                                         | 39640                                                                         | 15008                                                                         | 39216                                                                         | 28000.00                                                                      |
| 27                                                                            | Maharashtra **                                                                | 8448                                                                          | 17799                                                                         | 27424                                                                         | 26632                                                                         | 30000                                                                         | 45136                                                                         |
| 28                                                                            | Andhra Pradesh                                                                | 17344                                                                         | 14148                                                                         | 15736                                                                         | 12216                                                                         | 17032                                                                         | 17760                                                                         |
| 29                                                                            | Karnataka                                                                     | 31768                                                                         | 30286                                                                         | 21848                                                                         | 16920                                                                         | 23192                                                                         | 29256                                                                         |
| 30                                                                            | Kerala                                                                        | 15784                                                                         | 13068                                                                         | 9336                                                                          | 10776                                                                         | 11480                                                                         | 19888                                                                         |
| 31                                                                            | Lakshadweep                                                                   | 400                                                                           | 0                                                                             | 400                                                                           | 0                                                                             | 160                                                                           | 0.00                                                                          |
| 32                                                                            | Puducherry                                                                    | 1200                                                                          | 699                                                                           | 800                                                                           | 352                                                                           | 536                                                                           | 608                                                                           |
| 33                                                                            | Tamilnadu                                                                     | 21168                                                                         | 25764                                                                         | 29040                                                                         | 32760                                                                         | 29240                                                                         | 41480                                                                         |
|                                                                               | GRAND TOTAL 434760 407840 470000 387184 579048 587416                         | GRAND TOTAL 434760 407840 470000 387184 579048 587416                         | GRAND TOTAL 434760 407840 470000 387184 579048 587416                         | GRAND TOTAL 434760 407840 470000 387184 579048 587416                         | GRAND TOTAL 434760 407840 470000 387184 579048 587416                         | GRAND TOTAL 434760 407840 470000 387184 579048 587416                         | GRAND TOTAL 434760 407840 470000 387184 579048 587416                         |