Prime Minister’s employment generation programme: Opportunities and Challenges

The Prime Minister’s Employment Generation Programme (PMEGP) is a key credit-linked subsidy initiative in India, designed to create sustainable self-employment opportunities through micro-enterprises in the non-farm sector. Launched by the Ministry of Micro, Small and Medium Enterprises (MSME) and carried out by the Khadi and Village Industries Commission (KVIC), this program focuses on helping unemployed youth, traditional artisans, and women. This paper delves into two main aspects of PMEGP, exploring how it fosters entrepreneurship, boosts rural and urban livelihoods, and contributes to inclusive economic growth, as highlighted in various government reports and evaluations (KVIC, 2023; Ministry of MSME, Annual Report 2022-23). At the same time, the study points out significant challenges, such as regional disparities in implementation, delays in credit disbursement, lack of post-entrepreneurship support, and concerns regarding the sustainability and scalability of the enterprises created, as noted in several empirical studies (Kumar & Singh, 2021; Sharma & Gupta, 2022). The analysis wraps up by stating that while PMEGP has made impressive progress in job creation, its long-term success depends on tackling systemic issues, improving skill development and market connections, and establishing strong monitoring systems. The paper emphasizes the importance of a more integrated policy approach to evolve the scheme from merely generating employment to becoming a driving force for resilient and sustainable entrepreneurial ecosystems