Critical analysis of Prime Minister Employment Generation plan

The Prime Minister Employment Generation Plan is undoubtedly playing a vital role in
promoting self-employment opportunities through micro and small industrial development by
encouraging new entrepreneurs.

The main focus of PMEGP we see here is providing sufficient amount of subsidy of the new
entrepreneurs but as per the report conducted by Gurugram bases Management Development
Institute the utilization of total subsidy allotted by Ministry of MSME for implementation of
PMEGP was less than 50% in year 2008-09 but it has increased to 100.37% in 2016-17.

From July 2014 to December 2016, in the eight major sectors i.e. manufacturing, trade,
construction, education, transport and restaurant, only 6,41,000 jobs were created. In
comparison these same sectors had added a total of 1.28 million jobs from July 2011 to
December 2013. Specifically, jobs created by PMEGP in urban and rural areas has fallen by
24.4% from 428,000 in 2012-13 to 323,362 in 2015-16.

A report by Centre for Monitoring Indian Economy (CMIE) in January 2019 reveals that as
many as 1.1 crore people lost their jobs while unemployment rate was at its highest peak by
7.4% and this unemployment rate is seen going up from the time of demonetization. The
Programme of employment generation (PMEGP) is not able to cope up with high
unemployment rate and as a result this scheme looks as a failure. But till 2015 if we see the
employment generation under scheme was much high and it was giving a better result but
now the unemployment rate is so high that we are not able to feel the difference.

The overall Physical

achievement is 41.66%.
The main reason for non
achievement of
the physical target is
even though enough
applications are
forwarded to banks, it
is not
sanctioned in time and
the sanctioned loans are
not disbursed in time.
The overall Physical
achievement is 41.66%.
The main reason for non
achievement of
the physical target is
even though enough
applications are
forwarded to banks, it
is not
sanctioned in time and
the sanctioned loans are
not disbursed in time.
The overall Physical
achievement is 41.66%.
The main reason for non
achievement of
the physical target is
even though enough
applications are
forwarded to banks, it
is not
sanctioned in time and
the sanctioned loans are
not disbursed in time.
The overall Physical
achievement is 41.66%.
The main reason for non
achievement of
the physical target is
even though enough
applications are
forwarded to banks, it
is not
sanctioned in time and
the sanctioned loans are
not disbursed in time.
The overall Physical achievement is 41.66%. The main reason for non-achievement of

the physical target is even though enough applications are forwarded to banks, it is not
sanctioned in time and the sanctioned loans are not disbursed in time.

To have inclusive growth in the economy, there must be bottom-up approach i.e.
downtrodden people living must be enhanced in terms of income and employment
opportunities. Therefore, it is essence that ideas, vision and creativity must raise from the
rural areas who has better understanding in socio-economic condition

Conclusion

It was suggested at different levels that the loan amount provided is very small and even the
micro enterprises are tough to survive and making a livelihood out of this is out of question.
Just the promotion of self-employment is not the solution to India’s employment crisis the
govt need to make or do something bigger in scale.