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Research Paper | Entrepreneurship | Volume 15 Issue 5, May 2026 | Pages: 1499 - 1505 | India
Employment Generation Under PMEGP in India: Trends, Institutional Support, and State-Wise Performance
Abstract: The Prime Minister's Employment Generation Programme (PMEGP) is a flagship scheme of the Government of India aimed at promoting self-employment and entrepreneurship through credit-linked subsidies for micro-enterprises. The present study examines the performance of PMEGP in India with special reference to category-wise applications, state-wise performance, and the role of banking institutions in margin money disbursement. The study is descriptive and analytical in nature. It is based entirely on secondary data collected from MSME Annual reports, PMEGP publications, KVIC reports, and other government reports. The analysis covers category-wise PMEGP applications received during the period from 2019-20 to 2024-25. It also examines state wise performance of PMEGP during the year 2023-24 in terms of projects assisted, margin money subsidy disbursed, and employment generated. The effect of the number of projects assisted on employment generation under PMEGP is also examined. The study also identifies the leading banks based on margin money disbursed to PMEGP units. Statistical tools such as percentage analysis, comparative analysis, ranking methods and regression were used. The findings reveal that the General and OBC categories accounted for the largest share of applications, while participation from SC, ST, and Minority categories also improved gradually. Uttar Pradesh emerged as the leading state in terms of projects assisted, subsidy disbursed, and employment generated. The public sector banks played a dominant role in financing PMEGP projects. The study concludes that PMEGP has significantly contributed to entrepreneurship development, employment generation, and inclusive economic growth in India, though regional disparities in programme performance.
Keywords: PMEGP, Self-employment, Micro-enterprises, employment generation, Banking support
How to Cite?: Dr. Pradeesh N. M., "Employment Generation Under PMEGP in India: Trends, Institutional Support, and State-Wise Performance", Volume 15 Issue 5, May 2026, International Journal of Science and Research (IJSR), Pages: 1499-1505, https://www.ijsr.net/getabstract.php?paperid=SR26523212900, DOI: https://dx.dx.doi.org/10.21275/SR26523212900