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 (MSECDP), 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 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:
| FY | Total MSMEs Registered | Employment | ||||
| Udyam | UAP | Total | Udyam | UAP | Total | |
| 2021-22 | 51,36,236 | – | 51,36,236 | 3,49,54,072 | – | 3,49,54,072 |
| 2022-23 | 72,33,048 | 13,32,489 | 85,65,537 | 4,46,94,974 | 13,32,489 | 4,60,27,463 |
| 2023-24 | 95,99,941 | 1,53,13,518 | 2,49,13,459 | 5,59,13,216 | 1,85,46,114 | 7,44,59,330 |
The details of estimated employment generated under PMEGP during the last 3 years are given below:
| Year | No. of Units Assisted | MM Subsidy
(Rs. Cr) |
Estimated Employment Generated |
| FY2021-22 | 1,03,219 | 2,977.66 | 8,25,752 |
| FY2022-23 | 85,167 | 2,722.17 | 6,81,336 |
| FY2023-24 | 89,118 | 3,093.88 | 7,12,944 |
As per data available on Udyam registration and Udyam Assist Platform, employment is reported to be 7.44 crore in FY2023-24 as compared to the employment reported during FY2021-22 (3.49 crore). Under Prime Minister’s Employment Generation Programme, the average annual estimated employment generation during the last three years is 7.4 lakh. Further, as reported by RBI, credit disbursement to MSMEs has been increased from 16.97 lakh crores in FY2022-23 to 22.04 lakh crore in FY2023-24, indicating higher credit disbursement to the MSME sector.
Steps taken by Government to encourage MSME units and employment opportunities in MSME sector include:
- Prime Minister’s Employment Generation Programme (PMEGP):
- 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.
- Applicants from Aspirational districts and transgenders have been included in Special Category.
- Industries related to animal husbandry like dairy, poultry, aquaculture, insects (bees, sericulture, etc.) have been allowed under the scheme.
- COVID years i.e., FY2020-21 and FY2021-22 have been exempted while considering profitability of existing PMEGP/ REGP/ MUDRA units applying for 2nd Loan under PMEGP.
- 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.
- New revised criteria for classification of MSMEs with higher thresholds, based on Investment and Turnover, to widen the ambit of the MSME sector.
- No global tenders for procurement up to Rs. 200 crores.
- 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 (w.e.f. 01.04.2023) with a guarantee coverage up to 85% for various categories of loans.
- Free “Udyam Registration” for MSMEs, for Ease of Doing Business.
- Launch of portal, Udyam Assist Platform, for bringing Informal Micro Enterprises in the formal ambit which helped the registered IMEs to avail the benefits of Priority Sector Lending.
- Inclusion of Retail and Wholesale traders as MSMEs w.e.f. 02.07.2021 for credit purpose.
- Non-tax benefits extended for 3 years in case of an upward change in status of MSMEs.
- Launch of SAMADHAAN Portal for filing of grievances and monitoring of outstanding dues to the MSEs from the buyers of goods and services.
- Launch of online Portal “Champions” in June, 2020 to cover many aspects of e-governance including redressing grievances and handholding of MSMEs.
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