The Prime Minister’s Employment Generation Programme (PMEGP) was created for employment opportunities through micro-entrepreneurial ventures in rural and urban areas. Of the 8,567 projects slated, only 27 percent were realized. Three-quarters into the fiscal year (2021-22) and stock-taking reveals that barely 27 percent of the targets have been met. In fact, on a dismal note, jobs created stand at 18 percent less than the 2020-21 figures. This credit-linked subsidy scheme met 40 percent of targets in the previous fiscal.
Of the 8,567 projects slated, only 27 percent were realized. Sources in the government hold the second wave responsible. “April was the worst month of the pandemic this year and the scheme went underway precisely then. It saw a great decline in demand and confidence of enterprises,” said Pathik Patwari, senior VP, Gujarat Chamber of Commerce and Industries. He elaborated that the ensuing inflation not only led to credit shortfall but also dented the risk appetite of micro-entrepreneurs.
State officials estimate 1 crore persons currently employed in the MSME sector in Gujarat.
