Give an account of the objectives of Prime Minister Employment Generation Programme (PMEGP) and the benefits received under this scheme.
In short
PMEGP, launched in 2008-09, aims to create self-employment by helping youth, artisans and disadvantaged groups set up non-farm micro-enterprises, mainly in rural areas. Beneficiaries get a credit-linked margin money subsidy of 15% to 35% of project cost, and the scheme has generated employment for about 64 lakh persons.
Model answer
Ghissu Editorial · Verified 4 Oct 2026 · 273 words
Promoting Micro-Enterprise Development
PMEGP creates self-employment in manufacturing and services, reducing wage dependency and fostering entrepreneurship among youth and artisans.
Supporting Marginalized Groups
The scheme prioritizes SC/ST, OBCs, women, minorities, and differently-abled persons by offering higher margin money subsidies, promoting social equity.
Margin Money Subsidy
Beneficiaries get 15%-35% credit-linked subsidies depending on category and location; general rural beneficiaries receive 25%, special categories up to 35%.
Financial Assistance for Expansion
Existing units can avail a second loan with 15%-20% subsidy for upgradation, with 174 micro-entrepreneurs benefiting in 2024-25.
Employment Generation
PMEGP has generated sustainable employment for 64 lakh persons, with annual targets exceeding 5 lakh; in Andhra Pradesh, it supports job creation amid high GSDP growth.
Focus on Women and Backward Regions
Nearly 50% of units are women-led; over 10% of funds target backward states including the North East.
Strengthen Monitoring and Fund Disbursement
Digital tracking and timely fund release are needed to avoid delays, as noted by the Public Accounts Committee.
Enhance Skill Development Linkages
Integrate PMEGP with National Career Service3 and Prime Minister’s Internship Scheme to improve beneficiary skills.
Promote Awareness in Andhra Pradesh
Boost outreach and bank linkages in Andhra Pradesh’s rural districts to increase uptake among women and SC/ST entrepreneurs.
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Inclusive Growth: India and AP schemes49 questions
Asked in 8 of 8 sittings since 2008
Most tested: Women empowerment and poverty reduction through AP welfare and credit-linked institutions
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