How Rozgar Diwas And Other Employment Opportunities Have Been Able To Reduce The Unemployment Ratio Of Madhya Pradesh?

Madhya Pradesh has addressed employment and empowerment with a judicious balance of technical acumen, diverse needs, and aspirations by identifying key pain points.  The state aims to facilitate the ease of doing business, thereby attracting investments, and fostering sustainable development. By meticulously streamlining regulatory frameworks and fostering an enabling business environment, Madhya Pradesh has set the stage for entrepreneurial growth and economic vibrancy. The state has fostered an environment of cooperation and shared growth.

The Department of MSME, in the state, is the designated department for this task and it has implemented a slew of measures to facilitate the growth of employment through entrepreneurship. Policies like MP MSME Development Policy 2021 and Start-Up Policy and Implementation Scheme 2022 have boosted the self-employment environment in the state.

These schemes cater to a wide array of entrepreneurs- traditional as well as innovative ones. The department through cluster development initiatives has undertaken to enhance the productivity and competitiveness of the MSMEs in the cluster and supplements in employment generation. The start-up scheme, on the other hand, supports the strengthening of innovative ideas to scale up into sustainable businesses through financial and other types of aid. 

An ecosystem that nurtures and celebrates the spirit of enterprise, the state stands as a beacon of inspiration and a testament to the indomitable human spirit. It is an era where dreams are transformed into reality, where passion converges with opportunity, and where the indomitable spirit of entrepreneurship reigns supreme. However, all business ideas may not have sufficient financial and ideation backing to scale up. The government should focus on an inclusive policy net which would also benefit youths/ entrepreneurs outside the category of formalised MSMEs. 

Hence, for boosting self-employment in that sub-domain, the MP government has launched several schemes through banks that provide self-employment to the beneficiaries. The self-employment schemes of Madhya Pradesh Government were merged into following 3 major flagship schemes Mukhya Mantri Yuva Udyami Yojana, Mukhyamantri Swarojgar Yojana, Mukhyamantri Aarthik Kalyan Yojana. 

These were replaced with Mukhya Mantri Udhyam Kranti Yojna which was started in 2022. The Mukhya Mantri Udhyam Kranti Yojana (MMUKY) is a flagship scheme of GoMP and is being implemented by the MSME Department for facilitating self-employment. Under MMUKY, collateral-free loans up to Rs.50 lakh, are extended to micro/small business enterprises and to individuals to enable them to set up or expand their business activities. 

The Government of Madhya Pradesh is also encouraging schemes like Prime Minister's Employment Generation Programme (PMEGP), Pradhan Mantri Mudra Yojna, Mukhyamantri Gramin Path Vikreta Yojna, National Rural Livelihoods Mission (SHG), PM Svanidhi Yojana, National Urban Livelihoods Mission (Individual), National Urban Livelihoods Mission (Group), National Urban Livelihoods Mission (Credit Linkage), Sant Ravidas Swarojgar Yojna, Dr. Bhimrao Ambedkar Arthik Kalyan Yojna, Bhagwan Birsa Munda Swarojgar Yojna, Tantya Mama Arthik Kalyan Yojna among other schemes.

In addition to these schemes, “Rojgar Diwas” is organized every month in all districts of the state, where beneficiaries, who have availing loans in various self-employment schemes, are honoured and a dialogue is established with these beneficiaries to encourage other individuals to enrol in these schemes. 

The first event in this series started on 12 January 2022 on Swami Vivekanand Jayanti. The event was organized in Bhopal where 526510 beneficiaries were disbursed loans worth Rs. 2654.10 crores. Henceforth, this event has been organized every month where the honourable Chief Minister attends the Rojgar Diwas in a certain district and is attended by local MPs, MLAs and Ministers in other districts. 

On an average, a Rojgar Diwas gives self-employment to approximately 200000 beneficiaries and disburses 2000 crores to link the beneficiaries with finance. Hence, more than 40 Lakh beneficiaries have benefitted from various Rojar Diwas events, and more than 30,000 Crores amount being disbursed to the beneficiaries till date.

The empirical evidence demonstrates that the implementation of Rojgar Diwas, has yielded substantial outcomes for the state. The ramifications of these initiatives have been overwhelmingly positive, as manifested by a notable reduction in the state's unemployment rate in urban areas. 

Similar trends have been discernible in rural areas. It is important to note that these trends have exhibited a sustained trajectory over subsequent years, further consolidating the positive impact of the Rojgar Diwas interventions. The metrics elucidate the substantial growth in the number of self-employed beneficiaries, underscoring the efficacy and impact of the Rojgar Diwas interventions in driving self-employment opportunities and economic prosperity within the state of Madhya Pradesh.

The result has been hugely positive for the state. The state unemployment rate for Madhya Pradesh in urban areas has decreased from 77 persons per 1000 people in 2017-18 to 74 people in 2018-19 and up to 47 individuals per 1000 people in 2020-21 in the urban areas. Similar trends have been observed in rural areas where unemployment was 36 people per 1000 in 2017-18 to 24 people in 2018-19 and up to 11 individuals per 1000 in 2020-21 in the rural areas. 

These trends have been observed have also been seen in the subsequent years. The number of registered applicants (unemployed youth) on the MP Rojgar Portal has decreased from 1236482 applicants in 2021 to 713769 applicants in 2022. 

The percentage growth of total applicants in the state has decreased from 21.86 % at the same time. In total 44.27 lakh beneficiaries are provided with loans worth 30475.92 crores through Rojgar Diwas. The cluster development initiative has contributed by generating employment of approximately 19475 individuals. Also, there has been a marked increase in number of beneficiaries and disbursed loan amounts comparing the financial years 2021-22 and 2022-23. An increase of 10.34% in the number of beneficiaries and an increase of 41.27 % in the value of the amount disbursed has been observed. These criteria indicate substantial growth in the self-employed beneficiaries. 

While the numbers are encouraging, there are certain areas where some improvements can be undertaken. Despite the presence of significant prospective beneficiaries, several beneficiaries are unable to reap the benefits of the various schemes due to a lack of scheme understanding and training in advanced skills. 

Thus, tailormade training programmes can be given to unemployed youth to facilitate them to employ themselves by commencing self-employment units. Social insurance and labour accident insurance can be packaged along with certain schemes for the self-employed and people employed by them. This majorly includes small and micro units who rarely opt for these benefits due to its hefty premiums without external subsidies. Services such as accounting and tax filings, legal matters, and marketing, can also be provided through external agencies to micro enterprises as it is difficult to expend for these services with limited resources. 

In the realm of opportunity, the beneficiaries thrive, revealing the paradox of progress. A call resonates to bridge the gap of understanding and empower the seekers. Let the enabling forces guide the future.

About The Author: P Narahari is an IAS officer and is presently posted as Secretary, MSME Industries Department & Sports & Youth Welfare Department, Government of Madhya Pradesh

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