Lok Sabha Question No. 1624 (UNSTARRED), answered on 2024-08-01
Subject: Employment Opportunities in MSMEs
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Shri Raja A

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

## LOK SABHA

## UNSTARRED QUESTION NO. 1624

TO BE ANSWERED ON 01.08.2024

## EMPLOYMENT OPPORTUNITIES IN MSMEs

1624.

SHRI RAJA  A:

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

- (a) the details of employment opportunities created in MSMEs under various programmes including PMEGP during the last three years, year-wise;
- (b) whether the persons engaged in MSME units are declining due to lack of financing from banks, lack of marketing opportunities etc.; and
- (c) if so, the details thereof and the steps being taken by the Government to encourage MSME Units and to increase employment opportunities in MSMEs?

## ANSWER

## MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SUSHRI SHOBHA KARANDLAJE)

- (a): Government  implements  various  schemes  to  promote  MSME  Sector.  These  include  Prime Minister Employment Generation Programme (PMEGP), Procurement and Marketing Support (PMS) scheme,  Credit  Guarantee  Scheme  for  Micro  and  Small  Enterprises  (CGSMSE),  Micro  and  Small Enterprises  Cluster  Development  Programme  (MSE-CDP),  Scheme  of  Fund  for  Regeneration  of traditional Industries (SFURTI), A Scheme for Promotion of Innovation, Rural Industry & Entrepreneurship  (ASPIRE)  etc.  The  focus  of  PMEGP  is  exclusively  on  employment  generation  by setting up of new micro enterprises.

Details  of  employment  in  MSME  sector  as  per  Udyam  and  Udyam  Assist  Platform  (UAP) during the last 3 years are given below:

(No. of MSMEs & Employment in Lakhs)

| FY      | Total MSMEs Registered   | Total MSMEs Registered   | Total MSMEs Registered   | Employment   | Employment   | Employment   |
|---------|--------------------------|--------------------------|--------------------------|--------------|--------------|--------------|
| FY      | Udyam                    | UAP                      | Total                    | Udyam        | UAP          | Total        |
| 2021-22 | 51.36                    | -                        | 51.36                    | 349.54       | -            | 349.54       |
| 2022-23 | 72.33                    | 13.32                    | 85.66                    | 446.95       | 133.25       | 460.27       |
| 2023-24 | 96.00                    | 153.14                   | 249.13                   | 559.13       | 185.46       | 744.59       |

The details of estimated employment generated under PMEGP during the last 3 years are given below:

| Year      | No. of Units Assisted   | MMSubsidy (Rs. Cr)   | Estimated Employment Generated*   |   Average project size (Rs. Lakh) | Total Loan Sanctioned (Rs. Cr)   |
|-----------|-------------------------|----------------------|-----------------------------------|-----------------------------------|----------------------------------|
| FY2021-22 | 1,03,219                | 2,977.66             | 8,25,752                          |                              9.01 | 8,773.23                         |
| FY2022-23 | 85,167                  | 2,722.17             | 6,81,336                          |                             10.04 | 8,084.74                         |
| FY2023-24 | 89,118                  | 3,093.88             | 7,12,944                          |                             11.14 | 9,385.00                         |

(b): As  per  data  available  on  Udyam  registration  and  Udyam  Assist  Platform,  employment  is reported to be 7.44 crore in FY 2023-24 as compared to the employment of 3.49 crore reported during FY  2021-22.  Under  Prime  Minister's  Employment  Generation  Programme,  the  average  annual estimated employment generation per unit during the last three years is 8. Further, as reported by RBI, credit disbursement to MSMEs has been increased from 16.97 lakh crores in FY 2022-23 to 22.04 lakh crore in  FY 2023-24, indicating higher credit disbursement to the MSME sector. Under PMEGP, the loan  sanctioned  to  micro  enterprises  has  increased  from  Rs.  8,773.23  Crore  in  FY  2021-22  to  Rs. 9,385.00 Crore in FY 2023-24.

- (c): Steps taken by Government to encourage MSME units and employment opportunities in MSME sector include:

## i. Prime Minister's Employment Generation Programme (PMEGP):

- a) Maximum project cost admissible has been enhanced from Rs. 25 lakh to Rs. 50 lakh for manufacturing sector and from Rs. 10 lakh to Rs. 20 lakh for service sector.
- b) Applicants  from  Aspirational  districts  and  transgenders  have  been  included  in  Special Category.
- c) Industries  related  to  animal  husbandry  like  dairy,  poultry,  aquaculture,  insects  (bees, sericulture, etc.) have been allowed under the scheme.
- d) COVID  years  i.e.,  FY  2020-21  and  FY  2021-22  have  been  exempted  while  considering profitability  of  existing  PMEGP/  Rural  Employment  Generation  Programme  /  MUDRA units applying for 2 nd Loan under PMEGP.
- e) No mandatory EDP for project cost up to Rs. 2 lakh and shorter period of training (up to 5 days) for projects up to Rs. 5 lakh.
- ii. No global tenders for procurement up to Rs. 200 crores.
- iii. Credit Guarantee Scheme for MSEs: Under CGSMSE, through Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), collateral free loans are provided to MSEs up to a limit  of  Rs.  500  lakh  (since  01.04.2023)  with  a  guarantee  coverage  up  to  85%  for  various categories of loans.
- iv. Launch of Udyam portal, Udyam Assist Platform, for bringing Informal Micro Enterprises in the formal ambit which helped the registered Informal Micro Enterprises to avail the benefits of Priority Sector Lending.
- v. Inclusion of Retail and Wholesale traders as MSMEs with effect from 02.07.2021 for credit purpose.
- vi. Non-tax benefits extended for 3 years in case of an upward change in status of MSMEs.
- vii. Launch  of  'PM  Vishwakarma'  Scheme  on  17.09.2023  to  provide  benefits  such  as  credit support,  skill  training,  marketing  support,  etc.  to  artisans  and  crafts  people  engaged  in  18 traditional  trades.  The  Scheme  will  onboard  the  beneficiaries  on  Udyam  Assist  Platform  as 'entrepreneurs' in the formal MSME ecosystem.

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