The Ministry of Micro, Small and Medium Enterprises (MSME), Government of India, has released ₹1,000 crore in Margin Money (MM) subsidy under the Prime Minister’s Employment Generation Programme (PMEGP). The funding aims to support self-employment and promote entrepreneurship through the establishment of new micro-enterprises.
Union Minister for MSME Shri Jitan Ram Manjhi released the subsidy during a special function held at Kartavya Bhawan-3, New Delhi. The event was attended by Sushri Shobha Karandlaje, Minister of State for MSME; Shri Bharat Khera, Secretary, Ministry of MSME; and senior officials from the Ministry, the Khadi and Village Industries Commission (KVIC), the National Small Industries Corporation (NSIC), and the Office of the Development Commissioner (MSME).
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PMEGP’s Role in Creating Employment
PMEGP is a credit-linked subsidy programme designed to create sustainable self-employment opportunities by helping entrepreneurs establish new micro-enterprises in the non-farm sector.
The Ministry of MSME administers the scheme, while KVIC implements it nationally with support from other designated agencies, including State Khadi and Village Industries Boards (KVIBs), District Industries Centres and the Coir Board.
Under the scheme, entrepreneurs receive Margin Money subsidy against bank-sanctioned project loans to set up new micro-enterprises. They also receive support through awareness programmes, handholding, capacity building, market linkages, monitoring and post-establishment assistance. These measures aim to help enterprises sustain and grow over the long term.
Over 8.38 Lakh Micro Enterprises Established Since 2014-15
Since FY 2014-15, PMEGP has supported the establishment of more than 8.38 lakh micro-enterprises. These enterprises have received bank-sanctioned loans exceeding ₹70,000 crore, along with more than ₹25,193 crore in Margin Money subsidy.
The programme has generated approximately 75 lakh sustainable employment opportunities across the country.
PMEGP has also supported rural entrepreneurship and inclusive development. Nearly 80% of the assisted enterprises have been established in rural areas. Beneficiaries from Scheduled Castes (SC), Scheduled Tribes (ST), and Other Backward Classes (OBC) account for nearly 50% of the total, while women entrepreneurs own around 40% of the enterprises.
₹1,000 Crore Subsidy to Support 11,333 Entrepreneurs
The latest release of ₹1,000 crore will support 11,333 beneficiaries under PMEGP. These entrepreneurs have received bank-sanctioned project loans worth approximately ₹3,260 crore to establish micro-enterprises across various sectors.
The enterprises being established under this tranche are expected to generate more than 1.02 lakh sustainable employment opportunities, primarily in rural areas.
The assistance focuses on three key areas: promoting women-led entrepreneurship, supporting socially inclusive development, particularly among SC and ST communities, and encouraging balanced regional growth. The North Eastern Region (NER) and Aspirational Districts have been given special attention.
Scheme Performance During FY 2026-27
Before the latest subsidy release, PMEGP had supported 25,895 micro-enterprises during FY 2026-27, with Margin Money subsidy amounting to ₹794.52 crore as of October 2026.
The additional ₹1,000 crore is expected to further support entrepreneurship and employment generation across the country.
MSME Minister Highlights the Role of Micro Enterprises
Speaking at the event, Union Minister for MSME Jitan Ram Manjhi highlighted the role of micro-enterprises in driving economic growth, encouraging innovation and creating livelihoods at the grassroots level.
He reiterated the government’s commitment to providing institutional support to aspiring entrepreneurs, particularly those from rural areas, women, Scheduled Castes, Scheduled Tribes, Other Backward Classes, and economically weaker sections. The aim is to help them turn their business ideas into successful enterprises.
The Ministry of MSME stated that it remains committed to expanding PMEGP’s reach and strengthening the entrepreneurship ecosystem. The programme aims to create sustainable livelihoods, promote local manufacturing and services, and contribute to the vision of Viksit Bharat through inclusive economic development.