The Prime Minister’s Employment Generation Programme (PMEGP) is a flagship credit-linked subsidy scheme of the Ministry of Micro, Small and Medium Enterprises implemented through the Khadi and Village Industries Commission to promote self-employment and micro-enterprise development in rural and semi-urban areas. This study examines the role of PMEGP in generating employment opportunities with a primary data analysis from Palghar District. The research is based on primary data collected from PMEGP beneficiaries through structured questionnaires and field interactions. The study analyzes the socio-economic background of beneficiaries, Entrepreneurship development Training, and the number of employment opportunities created through these units. Statistical and descriptive methods are used to evaluate the effectiveness of the scheme in promoting entrepreneurship and local employment. However, challenges such as procedural delays, lack of awareness, and limited access to training and financial guidance still affect the optimal utilization of the scheme. Strengthening institutional support, improving awareness, and simplifying implementation mechanisms can further enhance the effectiveness of PMEGP in employment generation.