Lok Sabha Question No. 622 (UNSTARRED), answered on 2025-02-06
Subject: Employment Generation through MSMEs
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Shri Babu Singh Kushwaha

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

## LOK SABHA UNSTARRED QUESTION No. 622 TO BE ANSWERED ON 06.02.2025

## EMPLOYMENT GENERATION THROUGH MSMEs

## 622.      SHRI BABU SINGH KUSHWAHA:

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

- (a) the steps being taken to increase the opportunities for socio-economic development and employment through Micro, Small and Medium Enterprises (MSMEs) in Uttar Pradesh;
- (b) the  details  of  schemes  being  implemented  by  the  Government  to  boost  the  rural  economy  and empower the rural women by promoting rural entrepreneurship;
- (c) the details of the role of MSMEs for the development of small businesses and its contribution in Gross Domestic Product (GDP) of the country;
- (d) whether  the  Government  has  implemented  any  new  policy  or  special  promotional  schemes  for promoting small business and rural entrepreneurship; and
- (e) if so, the details thereof?

## ANSWER

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

(a) & (b): Ministry  of  MSME  through  the  Prime  Minister's  Employment  Generation  Programme supports establishment of new enterprises in the non-farm sector thereby increasing the opportunities for socio-economic  development  and  employment  generation  across  the  country.  The  Scheme  is  being implemented through the  Khadi and  Village  Industries Commission  (KVIC)  at  National  level  and  State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs), District Industries Centres (DICs) at State level.

Under the Scheme, General Category beneficiaries can avail Margin Money (MM) subsidy of 25% of the project cost in rural areas and 15% in urban areas. For beneficiaries belonging to Special Categories such as Scheduled Castes, Scheduled Tribes, OBCs, Minorities, Women etc and beneficiaries belonging to Northeastern Region, Hill and Border areas and Aspirational Districts, the Margin Money subsidy is 35% in rural areas and 25% in urban areas. The maximum cost of project is Rs. 50 lakhs in the manufacturing sector and Rs. 20 lakhs in the service sector.

Performance of PMEGP in terms of Margin Money subsidy, number of units assisted and estimated employment generated since last 3 years and current FY 2024-25 (up to 01.02.2025) across the country is given below:

|   S. No. | Financial Year   | MM Subsidy Utilised (Rs. in crore)   | No. of Units Assisted   | Estimated Employment Generated   |
|----------|------------------|--------------------------------------|-------------------------|----------------------------------|
|        1 | FY 2021-22       | 2,977.65                             | 1,03,219                | 8,25,752                         |
|        2 | FY 2022-23       | 2,722.17                             | 85,167                  | 6,81,336                         |
|        3 | FY 2023-24       | 3,093.87                             | 89,118                  | 7,12,944                         |
|        4 | FY 2024-25*      | 1,528.77                             | 38,235                  | 3,05,880                         |

Since  2021-22,  97,285  women-led  enterprises  have  been  assisted  across  the  country  under  the Scheme thereby empowering women and promoting rural entrepreneurship.

Performance  of  PMEGP  in  Uttar  Pradesh  since  last  3  years  and  current  FY  2024-25  (up  to 01.02.2025) is given below:

| Financial Year   |   Margin Money Subsidy (Rs. Cr) | No. of Units Assisted   | Estimated Employment Generated   |
|------------------|---------------------------------|-------------------------|----------------------------------|
| FY 2021-22       |                          411.63 | 12,594                  | 100,752                          |
| FY 2022-23       |                          378.65 | 11,601                  | 92,808                           |
| FY 2023-24       |                          435.28 | 11,689                  | 93,512                           |
| FY 2024-25*      |                          182.75 | 4,668                   | 37,344                           |

- (c): The Micro, Small and Medium Enterprises (MSME) sector contributes significantly to the economy and  social  development  of  the  country  by  fostering  entrepreneurship  and  generating  large  employment opportunities at comparatively lower capital cost, next only to agriculture. MSMEs are complementary to large industries as ancillary units and this sector contributes to around 30% of India's GDP .
- (d) and (e): Recent measures in place under the Prime Minister's Employment Generation Programme for promoting small business and rural entrepreneurship include the following :
- i. 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 for setting up a new project thereby expanding the range of eligible projects.
- ii. Existing PMEGP /MUDRA enterprises are supported with 2 nd loan for upgradation and expansion under  the  Scheme  with  maximum  project  cost  of  Rs.  1.00  crore  admissible  for  Margin  Money (MM) subsidy under Manufacturing sector and Rs. 25 lakh for Service sector. The subsidy varies from 15% to 20% of project cost.
- iii. Contribution of beneficiaries under Special Category including women is 05% as compared to 10% for General Category beneficiaries.
- iv. Conduct  of  awareness  programmes,  workshops  and  exhibitions  in  all  the  States/UTs  including backward and under-performing areas with focus on special category.
- v. Conduct of two-days free online Entrepreneurship Development Programme (EDP) for prospective entrepreneurs.
- vi. Acceptance of PMEGP applications from prospective beneficiaries in 11 regional languages since January 2024.
- vii. Industries related to Animal Husbandry like dairy, poultry, aquaculture, insects (bees, sericulture, etc.) have been allowed under the scheme.
- viii. Webinars are organized  for setting  up  of  micro-enterprises  on  every  Sunday  to  create  awareness among the youth and prospective entrepreneurs.

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