Effectiveness of PMEGP for MSMEs in employment generation with reference to Karunagapally

India today is looking onto the dawn of development- a more inclusive one than the plans that existed till day. There has been a paradigm shift from traditional agro-based development to a much more sustainable, equitable and multi-sectoral one. Off late, the importance given to industries has surged, resulting in various plans and policies. The Micro, Small & Medium scale enterprises is one of the division within the industrial sector where a great importance is given.

Considering the fast growth of population, the rise in unemployed youth and the lack of investment to have large scale industries, the MSMEs has assumed prime importance today. With 38% contribution to the nation’s GDP and 40% and 45% share of the overall exports and manufacturing output, respectively, it is easy to comprehend the salience of the role they play in social and economic restructuring of India. The Government both at Central and State levels have devised various schemes for the support of the MSMEs.

Hence the current study is on the Prime Minister’s Employment Generation Programme and to identify its role towards the contribution in employment generation, production and profitability. The primary objective is to analyse the effectiveness of PMEGP by measuring the reach, awareness, employment generation and production. The research also focuses into the problems faced by the MSMEs, to analyse the funding mechanism and analyse the merits and demerits of the scheme.

The area of study chosen is Karunagapally in Kollam District of Kerala. The sample size is 100 and the method of research adopted is descriptive research, imparting the survey methods that include all kinds of comparative and correlation methods. An extensive literature survey included collection of data based on observation and questionnaire and the secondary data which includes the books, post office journals and websites and also the research work. The findings of the research are to highlight that awareness does exist and this programme holds a flagship in providing employment opportunities to the people.