Employment opportunities created in MSMEs under the PMEGP Programme of KVIC for assisting entrepreneurs in setting up of new units in the non-farm sector

Ministry of MSME, through Khadi and Village Industries Commission (KVIC), is implementing Prime Minister’s Employment Generation Programme (PMEGP) for assisting entrepreneurs in setting up of new units in the non-farm sector. It aims to bring together widely dispersed traditional artisans/ rural and urban unemployed youth and give them self-employment opportunities to the extent possible, at their doorstep.

Under PMEGP, General Category beneficiaries can avail of 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, MinoritiesWomen, Ex-servicemen, Physically Handicapped, beneficiaries belonging to Northeastern Region, Hill and Border areas, etc., the Margin Money subsidy is 35% in rural areas and 25% in urban areas. The maximum cost of project is Rs.50 lakh in the manufacturing sector and Rs.20 lakh in the service sector.     

Number of units assisted, Margin Money subsidy disbursed and estimated employment generated under PMEGP in the country from 2018-19 to 2022-23, year wise is as follows:


Performance under PMEGP from 2018-19 to 2022-23 (as on 31.01.2023)
(MM: Rs. In Lakh, Project/Employment : in Numbers)
Years Units Assisted Margin Money Subsidy Disbursed Estimated Employment Generated
2018-19 73427 207000.54 587416
2019-20 66653 195082.15 533224
2020-21 74415 218880.15 595320
2021-22 103219 297765.91 825752

(as on 31.01.2023)

55499 178231.00 443992
Total 373213 1096959.75 2985704


There is no downfall in employment generated during 2021-22 as compared to 2018-19 under PMEGP. In fact, there has been an increase of ~40% in employment generated under PMEGP from 587,416 in 2018-19 to 825,752 in 2021-22.

Following steps are being taken by KVIC to generate more employment opportunities in the country:

Awareness camps, workshops and exhibitions at all levels are being organized in order to propagate the KVI schemes for generation of employment opportunities.

Publicity of KVI schemes through print and electronic media. To supplement the income of farmers, adivasis and unemployed youth of the country, KVIC launched Honey Mission during 2017 – 18. Under Honey Mission, every person is provided 10 bee boxes with live bee hives.

Under Kumbhar Sashaktikaran Programme, KVIC is uplifting rural pottery artisan’s livelihood by providing skill upgradation training and providing new home scale energy efficient equipment like electric pottery wheels, blunger, pug mill, kiln etc. for producing good quality of products.

KVIC, through www.ekhadiindia.comwww.khadiindia.gov.in has started online selling of all KVI products.

This information was given by the Minister of State for Micro Small and Medium Enterprises, Shri Bhanu Pratap Singh Verma in a written reply to the Rajya Sabha.

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