New Delhi: Despite increased subsidies and central government grants to Gujarat under the Prime Minister’s Employment Generation Scheme (PMEGS) in recent years, job creation in the state has steadily declined as compared to other states where much less amount was received, government data furnished in Rajya Sabha reveals.
The New Indian Express reported, citing the written reply provided by Ministry of Micro, Small and Medium Enterprises, that in 2021-22, when the covid pandemic was going strong, the scheme supported 4,143 units and generated 33,144 jobs with a subsidy of Rs. 287.04 crore.
However, by 2023-24, although subsidies rose to Rs. 321.24 crore, the number of supported units dropped to 3,000, and job creation fell sharply to just 24,000.
The trend began in 2022-23, when the subsidy allocation was reduced to Rs. 241.82 crore. That year, 3,071 units were supported, creating jobs for 24,568 people.
While this decline in subsidy support was attributed to post-pandemic economic conditions, the continued drop in job creation in 2023-24 despite an increase in subsidy has cast doubts on the scheme’s capacity to drive employment growth, the newspaper report.
These figures raise critical questions about the PMEGS’s impact in Gujarat, as higher financial input has failed to sustain or improve employment generation.
In 2023-24, Gujarat received the second-highest subsidy allocation under the scheme, trailing only Uttar Pradesh. However, it ranked ninth in employment generation. Jammu and Kashmir led in this area, creating jobs for 120,520 people – over 40 times the number in Gujarat – despite receiving 12.06% less subsidy.
The central ministry highlighted in its reply that the scheme has been revamped to strengthen project funding and foster inclusivity. As part of these changes, the maximum project cost has been increased to Rs. 50 lakh for manufacturing and Rs. 20 lakh for services, representing a twofold rise from the earlier limits. The scheme also broadened the scope of beneficiaries under the special category to include applicants from aspirational districts and transgender individuals.
