PMEGP: Shaping India's Entrepreneurial Future

Abstract: Prime Minister’s Employment Generation Programme (PMEGP) plays a crucial role in the vision of promoting entrepreneurship and generating employment in both rural and urban areas, thereby encouraging self-reliance. It encourages entrepreneurship and self-employment by providing a margin money subsidy on bank loans for setting up new enterprises. Employment generation is essential for combating poverty, improperly using people’s intellectual, physical, and skill-based potential, and ensuring the working population becomes economically productive. PMEGP is a driving force for entrepreneurship; hence, its performance must be consistent over the years. This research aims to assess the consistency in the performance of PMEGP since its inception to create an entrepreneurial environment in India. Data is analysed using trend analysis, Ordinary Least Squares (OLS) regression, and Panel Data regression analysis with Fixed Effects Model (FEM) and Random Effects Model (REM). The data is collected from the Khadi and Village Industries Commission (KVIC), Mumbai. The trend analysis of the three variables: the number of units assisted (NUA), margin money utilised (MMU), and Employment created (EC) shows that an increase or decrease in NUA and MMU leads to an increase or decrease in EC, respectively. A Panel data regression analysis is conducted among the three variables, i.e., NUA, MMU, and EC. The FEM shows that the overall R-squared is 0.95, and the F-statistic probability is zero, indicating the model is a good fit. Thus, the result of the study reveals that NUA and MMU are significant determinants for generating employment opportunities in India across different industrial sectors. The study indicates that most of the units and employment are generated in rural regions as compared to urban regions. The study's findings suggest that the forest-based industry has consistently generated mass employment opportunities in India, while the service sector is the most inconsistent among all the sectors. Thus, PMEGP can be seen as a fruitful initiative by the Government, marking it as a catalyst for entrepreneurship generation in India. Keywords: PMEGP, India, entrepreneurship, employment. Title: PMEGP: Shaping India’s Entrepreneurial Future Author: Kritika Das, Dr. Parag Dutta International Journal of Recent Research in Commerce Economics and Management (IJRRCEM) ISSN 2349-7807 Vol. 12, Issue 3, July 2025 - September 2025 Page No: 44-53 Paper Publications Website: www.paperpublications.org Published Date: 20-September-2025 DOI: https://doi.org/10.5281/zenodo.17164883 Paper Download link (Source) https://www.paperpublications.org/upload/book/PMEGP%20Shaping%20India’s%20Entrepreneurial%20Future-20092025-2.pdf