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Union Minister for Micro, Small and Medium Enterprises (MSME) Jitan Ram Manjhi has released a margin money subsidy of ₹1,000 crore under the Prime Minister’s Employment Generation Programme (PMEGP) to support 11,333 new micro enterprises across the country. The assistance is expected to facilitate bank credit of approximately ₹3,260 crore and generate more than 1.02 lakh sustainable employment opportunities. The initiative aims to promote self-employment and expand entrepreneurship opportunities in rural areas.
Financial Support for Micro Enterprises Through PMEGP
The subsidy was released during a special event held at Kartavya Bhawan-3 in New Delhi. Union Minister of State for MSME Shobha Karandlaje, Ministry Secretary Bharat Khera and senior officials from the Ministry and associated institutions were also present on the occasion.
PMEGP is one of the central government’s key credit-linked subsidy schemes. It aims to create sustainable self-employment opportunities by supporting the establishment of new micro enterprises in the non-farm sector. Administered by the Ministry of MSME, the scheme is implemented nationally by the Khadi and Village Industries Commission (KVIC). Other agencies, including State Khadi and Village Industries Boards, District Industries Centres and the Coir Board, also support its implementation.
75 Lakh Employment Opportunities Generated
Since the financial year 2014-15, PMEGP has supported the establishment of more than 8.38 lakh micro enterprises through over ₹70,000 crore in bank-sanctioned loans and more than ₹25,193 crore in margin money subsidies. The scheme has resulted in the creation of approximately 75 lakh sustainable employment opportunities across the country.
Around 80% of the units supported under the scheme have been established in rural areas. Approximately 50% of the beneficiaries belong to Scheduled Castes, Scheduled Tribes and Other Backward Classes, while women entrepreneurs own nearly 40% of the enterprises. These figures highlight the scheme’s role in promoting rural entrepreneurship, women’s empowerment and social inclusion.
Scheme Expansion Continues in FY 2026–27
As of October 2026, PMEGP had provided ₹794.52 crore in margin money subsidies to 25,895 micro enterprises during FY 2026-27. The additional ₹1,000 crore released now is expected to further accelerate enterprise creation and employment generation.
According to the Ministry, this phase will place special emphasis on women entrepreneurs, socially disadvantaged communities and rural areas. Promoting entrepreneurship in the Northeastern Region and aspirational districts will also remain a priority.
Through this initiative, the government aims to strengthen local manufacturing and the services sector, expand self-employment opportunities and accelerate inclusive economic growth. By providing financial assistance to micro enterprises through PMEGP, the government seeks to advance the vision of a self-reliant economy and a developed India.
