The Ministry of Micro, Small and Medium Enterprises (MSME), Government of India, achieved another significant milestone in promoting self-employment and grassroots entrepreneurship with the release of ₹1,000 crore in Margin Money (MM) subsidy under the Prime Minister’s Employment Generation Programme (PMEGP).
The subsidy was released by Shri Jitan Ram Manjhi, Union Minister for MSME, during a special function organised by the Ministry at Kartavya Bhawan-3, New Delhi. The event was graced by Sushri Shobha Karandlaje, Minister of State for MSME; Shri Bharat Khera, Secretary, Ministry of MSME; other senior officials from the Ministry, CEO,Khadi and Village Industries Commission, CMD National Small Industries Corporation (NSIC), and the Office of the Development Commissioner (MSME).
PMEGP is one of the flagship credit-linked subsidy programmes of the Government of India aimed at creating sustainable self-employment opportunities through establishment of new micro-enterprises in the non-farm sector. The scheme administered by the Ministry of MSME is implemented nationally by the Khadi and Village Industries Commission (KVIC), with support from other designated implementing agencies such as KVIBs, District Industries Centres and Coir Board. Under the scheme, aspiring entrepreneurs are provided financial assistance in the form of MM subsidy on bank-sanctioned project loans for setting up new micro-enterprises. Awareness generation, handholding, capacity building, market linkages, monitoring and post-establishment support is also provided by KVIC field offices and Implementing Agencies at the grassroot level to promote long-term enterprise sustainability and growth. The programme plays a vital role in promoting entrepreneurship, strengthening local economies, and generating sustainable employment opportunities, particularly in rural and underserved regions of the country.
PMEGP's Transformational Impact since 2014-15
PMEGP has emerged as one of the country's most successful employment generation programmes. Since FY 2014-15, PMEGP has facilitated the establishment of more than 8.38 lakh micro enterprises through bank-sanctioned loans exceeding ₹ 70,000 crore and MM subsidy of over ₹ 25,193 crore, resulting in the generation of approximately 75 lakh sustainable employment opportunities across the country.
The achievements of PMEGP also reflect its strong commitment to inclusive and equitable development. Nearly 80% of the assisted units have been established in rural areas. Further, nearly 50% of the beneficiaries belong to SC, ST and OBC categories, while around 40% of the enterprises are owned by women entrepreneurs, demonstrating the scheme's pivotal role in fostering social inclusion, women-led development, and empowerment of disadvantaged sections of society.
₹1,000 Crore Subsidy to Benefit 11,333 Entrepreneurs to Date
The release of ₹ 1,000 crore MM subsidy will facilitate support to 11,333 beneficiaries under PMEGP. These beneficiaries have received bank-sanctioned project loans amounting to approximately ₹ 3,260 crore for setting up new micro-enterprises across various sectors.
The enterprises being established under this tranche are expected to generate more than 1.02 lakh sustainable employment opportunities, primarily in rural areas across the country. The assistance is strategically targeted to advance Women-led entrepreneurship and gender-inclusive growth; socially inclusive development, particularly among SC and ST communities; and balanced regional development, with a special focus on the North Eastern Region (NER) and Aspirational Districts.
Prior to this release, during FY 2026-27, PMEGP had already supported 25,895 micro enterprises with MM subsidy amounting to ₹ 794.52 crore to October 2026. With the release of the present ₹ 1,000 crore subsidy tranche, the scheme is expected to further accelerate entrepreneurship development and employment generation across the country, strengthening the Government's vision of building a self-reliant, inclusive, and employment-oriented economy.
Speaking on the occasion, the Union Minister emphasized the critical role of micro enterprises in driving economic growth, fostering innovation, and generating livelihoods at the grassroots level. He reiterated the Government's commitment to ensuring that aspiring entrepreneurs, particularly those from rural areas, women, Scheduled Castes, Scheduled Tribes, Other Backward Classes, and economically weaker sections, receive adequate institutional support to transform their entrepreneurial aspirations into successful enterprises.
The Ministry of MSME remains committed to expanding the reach of PMEGP and strengthening the entrepreneurship ecosystem to create sustainable livelihoods, promote local manufacturing and services, and contribute significantly to the vision of Viksit Bharat through inclusive and broad-based economic development.