ESDP: Modi government’s entrepreneurship development program sees more than 5.5 times the number of trainees in almost 18 months

Programs such as the Industrial Motivation Campaign (IMC), Entrepreneurship Awareness Program (EAP), Entrepreneurship and Skills Development Program (E-SDP), and Management Development Program ( CDM) are led by MSME development institutes.

The number of trainees entering the Entrepreneurship Skills Development Program (ESDP) – among the Modi government’s key programs to promote entrepreneurship – has increased by more than 5.5 times in almost 18 months. Out of 3,535 programs involving 49,548 trainees around January last year, 8,164 programs were held involving 2,73,866 trainees as of June 7, 2021, according to data available from the Commissioner for Development (MSME), Ministry of MSME. Furthermore, the total expenditure incurred by the government for the project so far was Rs 33.58 crore while the total revenue stood at Rs 3.18 crore.

“The growth is good, but in the current situation, how could MSMEs employ qualified young people, because the sector itself is in bad shape. Also to create your own unit, getting funding is not easy. There are programs from the MSME ministry, but it is difficult to get money for working capital or for setting up the factory and machinery. The number of these trainees who set up their own unit depends on the support they receive from the government. If they could set up businesses, it would help in the employment of skilled manpower,” Avinash Dalal, National Chairman of All India MSME Association, told Financial Express Online.

Comments from DC MSME were not immediately available via email and appealed to this story.

Programs such as the Industrial Incentive Campaign (IMC) to encourage traditional and non-traditional entrepreneurs to set up a Micro and Small Enterprise (MSE), Entrepreneurship Awareness Program (EAP), Business Development Program Entrepreneurship and Skills (E-SDP), and Management Development Programs (MDP) are conducted by MSME Development Institutes in ITIs, polytechnics and other technical institutions. The program focuses on young people, including potential SC/ST entrepreneurs and women, people with disabilities, ex-military, and people living below the poverty line, to motivate them to become self-employed or enter into business as a business. one of the career options.

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20% of these free programs are conducted exclusively for the weaker strata of society including SC/ST, women and physically handicapped people with an allowance of Rs 500 per month per candidate under the promotional program for MSEs, according to Invest India. In November 2019, the government published guidelines on the reinforced ESDP. The programs had a capacity of 50 to 100 people in IMC for young people, 30 to 60 people in IMC for clusters, associations and chambers; and 25 people in EAP, E-SDP and MDP each.

While over Rs 135 crore was sanctioned under the ESDP in 2019 by the government for organizing skills development programs across India through state governments, industry associations, social enterprises and state corporations, the amount had fallen to Rs 63.6 crore in 2020, the Ministry of MSMEs had said in its year-end report.

Meanwhile, the government’s premier MSME development agency, the National Institute of Micro, Small and Medium Enterprises (NI-MSME), which trains MSMEs, individuals and professionals in entrepreneurship development, capacity building capacities, etc., recorded an increase of nearly 150%. the number of trainees trained in FY21 despite fewer programs being conducted amid Covid compared to the prior FY. 95 training programs involving 9,935 trainees were conducted in FY21, compared to 154 programs involving 3,999 trainees conducted in FY20, according to available government data.

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