**Executive Summary**
This document is a response to Lok Sabha Unstarred Question No. 732 regarding employment generation and industrial growth, specifically concerning the impact on traditional industrial hubs like Mandi Gobindgarh in Punjab. It outlines the government's initiatives to promote MSMEs, modernize industries, enhance skill development, and integrate industrial clusters into global value chains, with a focus on women and marginalized groups. The response was prepared on 04.12.2025 and includes data on MSME registrations up to 25.11.2025.
**Key Points / Main Content**
* **MSME Promotion and Development:**
* The government supplements States/UTs efforts through various schemes and initiatives for MSME promotion, including in Mandi Gobindgarh, Punjab.
* Key schemes include Prime Minister's Employment Generation Programme, PM Vishwakarma scheme, Credit Guarantee Scheme for Micro and Small Enterprises, Entrepreneurship & Skill Development Programme, Micro and Small Enterprises-Cluster Development Programme, Raising and Accelerating MSME Performance, and MSME Champions Scheme.
* Since 1.7.2020, 19,93,925 MSMEs have registered in Punjab, employing 89,01,520 persons as of 25.11.2025.
* **Modernization, Skill Development, and Inclusion:**
* A network of Technology Centres/Tool Rooms supports MSMEs with advanced manufacturing technologies and training.
* Special drives promote registration of women-owned MSMEs on Udyam Registration (UR) and Udyam Assist Portals (UAP).
* Public Procurement Policy mandates 3% of annual procurement from women-owned micro and small enterprises.
* Prime Minister's Employment Generation Programme (PMEGP) provides credit-linked subsidies for self-employment, with 39% of beneficiaries being women receiving a higher subsidy (35%).
* ‘Skill Upgradation and Mahila Coir Yojana' supports skill development for women artisans in the Coir sector.
* ‘PM Vishwakarma’ Scheme, launched on 17.09.2023, provides benefits to traditional artisans and craftspeople, including women, in 18 trades.
* The 'Yashasvini' campaign raises awareness and provides support for women entrepreneurs.
* **Cluster Development:**
* The Micro and Small Enterprises Cluster Development Programme (MSE-CDP) aims to integrate MSMEs into local and global value chains.
* The government provides grants to establish Common Facility Centers (CFCs) and upgrade infrastructure in industrial areas.
* In Punjab, 6 CFC and 21 Infrastructure Development projects have been approved under MSE-CDP, including an upgrade project at Mandi Gobindgarh.
* Nationally, 113 CFCs and 251 IDs have been completed under the scheme.
**Impact Analysis**
**Stakeholder: MSMEs (Micro, Small, and Medium Enterprises) in India, particularly in Punjab and Mandi Gobindgarh**
* **Impact:** Improved access to technology, training, and financial assistance, potentially leading to enhanced productivity, competitiveness, and integration into global value chains.
* **Action Required:** Register on the Udyam portal to access benefits, participate in relevant schemes (PMEGP, Vishwakarma), and utilize available resources like Technology Centres/Tool Rooms and CFCs.
**Stakeholder: Women Entrepreneurs**
* **Impact:** Increased opportunities for business ownership, access to procurement contracts (3% mandate), and skill development through targeted programs and awareness campaigns.
* **Action Required:** Register on Udyam and Udyam Assist Portals, explore opportunities under the Public Procurement Policy, participate in skill development programs (Mahila Coir Yojana), and engage with the 'Yashasvini' campaign.
**Stakeholder: Unemployed Youth, Traditional Artisans, and Marginalized Groups**
* **Impact:** Enhanced access to self-employment opportunities through subsidized programs like PMEGP and skill development initiatives aimed at improving competitiveness and integrating into the workforce.
* **Action Required:** Explore opportunities under the PMEGP and Vishwakarma scheme, participate in skill development programs, and leverage the support provided by the government to establish micro-enterprises.
**Stakeholder: States/UTs (Union Territories)**
* **Impact:** Collaboration with the Government of India in promoting the MSME sector through various schemes, programmes, and policy initiatives.
* **Action Required:** Continue implementing and supporting the various schemes and initiatives outlined in the document to further the promotion and development of MSMEs in their respective regions.
Key Entities Referenced
Ministry of Micro, Small and Medium Enterprises (MSME): The primary ministry responsible for the schemes and initiatives discussed in the policy.
Prime Minister's Employment Generation Programme (PMEGP): A credit-linked subsidy programme aimed at generating self-employment opportunities.
PM Vishwakarma scheme: A scheme providing benefits to traditional artisans and craftspeople.
Micro and Small Enterprises Cluster Development Programme (MSE-CDP): A program to integrate MSMEs into local and global value chains.
Punjab: A state where specific industrial hubs and initiatives are being evaluated and implemented.
GOVERNMENT OF INDIA
MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES
LOK SABHA
UNSTARRED QUESTION NO. 732
TO BE ANSWERED ON 04.12.2025
EMPLOYMENT GENERATION AND INDUSTRIAL GROWTH
732. DR. AMAR SINGH:
Will the MINISTER OF MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state:
(a) whether the Government has evaluated the impact of ongoing job creation efforts on the
quality and sustainability of employment opportunities particularly in traditional industrial hubs such
as Mandi Gobindgarh in Punjab, if so, the details thereof;
(b) the details of specific initiatives undertaken to promote Micro, Small and Medium Enterprises
(MSME), modernize heavy industries, enhance new skill development programmes and facilitate
greater participation of women and marginalized groups in the workforce in such regions; and
(c) the plans to integrate industrial clusters like Mandi Gobindgarh into global value chains to
boost manufacturing-led employment and achieve inclusive growth targets for the coming decade?
ANSWER
MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES
(SUSHRI SHOBHA KARANDLAJE)
(a) and (b): The Micro, Small and Medium Enterprise (MSME) sector is a vibrant sector of the
economy. The Government of India supplements the efforts of the States/UTs through various
schemes, programmes and policy initiatives for promotion, development of MSMEs in the country
including Mandi Gobindgarh in Punjab. These schemes/ programmes include Prime Minister's
Employment Generation Programme, PM Vishwakarma scheme, Credit Guarantee Scheme for Micro
and Small Enterprises, Entrepreneurship & Skill Development Programme scheme, Micro and Small
Enterprises - Cluster Development Programme, Raising and Accelerating MSME Performance,
MSME Champions Scheme, etc. These schemes provide employment in manufacturing, services,
trading and women owned enterprises. Since inception of the Udyam Registration portal on 1.7.2020,
as many as 19,93,925 MSMEs have registered in Punjab which includes informal micro Enterprises,
providing employment to 89,01,520 persons as on 25.11.2025.
The Government has taken a number of initiatives to modernize heavy industries, enhance new
skill development programmes and facilitate greater participation of women and marginalized groups
in the country, such as:
i. A network of Technology Centres/Tool Rooms has been established by the Government in the
country to support MSMEs by providing access to advance manufacturing technologies,
training & skilling to make them competitive.: 2 :
ii. Special drives for registration of women-owned MSMEs on Udyam Registration (UR) and
Udyam Assist Portals (UAP).
iii. To support women entrepreneurs, the Public Procurement Policy mandates that 3% of annual
procurement by CPSEs/Ministries/Departments must be made from women-owned micro and
small enterprises.
iv. Ministry of MSME implements Prime Minister’s Employment Generation Programme
(PMEGP) which is a credit-linked subsidy programme aimed at generating self-employment
opportunities through establishment of micro-enterprises in the non-farm sector by helping
traditional artisans and rural/urban unemployed youth. Out of the total PMEGP beneficiaries,
39% are women and they are provided higher subsidy (35%) vis-a-vis non-special category
(upto 25%).
v. To encourage entrepreneurship among women, Ministry of MSME implements ‘Skill
Upgradation and Mahila Coir Yojana’ under Coir Vikas Yojana, which is an exclusive
training programme aimed at skill development of women artisans engaged in the Coir sector.
vi. Ministry of MSME has launched ‘PM Vishwakarma’ Scheme on 17.09.2023, to provide a
number of benefits to the traditional artisans and craftspeople including women, engaged in
18 traditional trades.
vii. The Ministry has launched the awareness campaign ‘Yashasvini’ to create awareness among
existing and aspiring women entrepreneurs and providing them with continuum of support
through handholding, mentorship, and capacity building.
(c): The Government is implementing Micro and Small Enterprises Cluster Development
Programme (MSE-CDP) across the country. The objective of the scheme is to integrate MSMEs into
local and global value chain by enhancing their productivity and competitiveness. Financial assistance
as GoI grant is provided to establish Common Facility Centers (CFCs) in the existing clusters and
establish/up-grade infrastructural facilities in new/existing industrial estates/areas/flatted factory
complexes.
Under the scheme, total 06 project of Common Facility Centres (CFCs) and 21 Infrastructure
Development (ID) projects, including 01 up-gradation project at Focal Point, Mandi Gobindgarh,
Fatehgarh Sahib, have been approved in the State of Punjab under MSE-CDP. Under the scheme 113
CFCs and 251 IDs have been completed across the country till now.
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