Performance, employment generation, and inclusiveness of the Prime Minister’s employment generation programme in Kerala

The Prime Minister’s Employment Generation Programme (PMEGP) is a flagship self employment initiative of the Government of India aimed at promoting inclusive entrepreneurship through credit linked subsidies. This study explores the performance of PMEGP in Kerala over the period 2019-20 to 2024-25 using secondary data. The study focuses on year-wise growth in projects, margin money disbursement, employment generation, district-wise PMEGP application trends, and social category participation. Growth rate analysis indicates a sharp pandemic induced contraction in 2020-21, followed by a strong recovery during the period 2021-22 and sustained financial expansion thereafter. However, employment generation per project shows a declining trend in recent years, indicating reduced employment intensity. District wise analysis highlights the dominance of Malappuram and Palakkad, while social category analysis reveals continued predominance of OBC applicants alongside gradual diversification. The study suggests the need for policy recalibration towards labour-intensive enterprises to enhance the employment impact of PMEGP in Kerala.