AHMEDABAD: The Prime Minister’s Employment Generation Programme (PMEGP) has virtually failed in Gujarat, with not a single application from key districts like Surat and Navsari in 2024–25. A sharp 60 per cent decline in applications over five years, coupled with the closure of 7,269 small and medium enterprises, has left over 33,000 people jobless, exposing the Gujarat government’s failure in translating employment promises into reality.
In a damning indicator of policy failure, Gujarat has witnessed a breakdown in the implementation of the PMEGP, particularly in major districts like Surat and Navsari, which recorded zero applications for the scheme in 2024–25. This shocking data has emerged from a central government reply in the Rajya Sabha to Gujarat MP Narhari Amin, laying bare the state’s crumbling employment generation apparatus.
The collapse is not isolated. PMEGP applications have plummeted from 19,654 in 2020–21 to just 7,793 in 2024–25, a drop of over 60 per cent, clearly revealing that Gujarat’s youth are losing faith in the scheme. Even in tribal districts where the scheme was meant to be a lifeline, the numbers are alarming: only seven applications in Dang and Mahisagar, 16 in Chhota Udepur, and just two in Narmada.
Despite the state’s aggressive advertising campaigns and repeated tall claims on employment, this dramatic fall in applications underscores a deeper issue: a complete disconnect between government rhetoric and ground-level impact. Gujarat Pradesh Congress Committee spokesperson Dr. Hiren Banker minced no words, calling the scheme “employment generation in name only” and slamming the state for its failure to extend any real benefits to job-seeking youth.
But the crisis runs far deeper than just dwindling application numbers. In response to a question by Congress President and Rajya Sabha MP Mallikarjun Kharge, the government revealed alarming data on the state of Gujarat’s small and medium enterprises (SMEs) long considered the backbone of its economy. Over the past five years, 7,269 MSMEs have shut down, leading to the loss of 33,361 jobs. The pace of closures has surged drastically from just 67 units in 2020–21 to a staggering 3,329 in 2024–25 alone, resulting in 14,746 job losses in a single year.
This trend clearly illustrates that self-employment is no longer a viable option for Gujarat’s youth, thanks to administrative apathy, lack of guidance, and an indifferent attitude from both the state and central governments. Even banks are tightening approvals; only 2,733 loans were sanctioned in 2024–25, down from 4,265 in 2020–21.
What’s worse, the decline has affected both urban and rural regions, revealing that the scheme’s failure is systemic, not localised. Despite the PMEGP’s intent to encourage grassroots entrepreneurship, the lack of proper support, handholding, and follow-through has rendered the scheme ineffective across the state.
The Gujarat Congress spokesperson Dr. Banker demanded an immediate overhaul of the state's MSME policy, urging the BJP government to move beyond flashy advertisements and take real, corrective action in the public interest. Until then, Gujarat’s youth will continue to face a bleak future betrayed by promises, trapped in unemployment, and increasingly forced to migrate in search of opportunity.