The Government of Assam continues to implement its flagship Swami Vivekananda Assam Youth Empowerment (SVAYEM) Scheme, providing financial assistance to young individuals for income-generating activities across manufacturing, trading, and service sectors. The initiative aims to foster entrepreneurship and generate employment opportunities in both rural and urban areas of the state.
Originally launched in 2017, the scheme was significantly revamped in 2020 and again in 2021 to address previous limitations and broaden its reach, with a total budget of Rs. 1,000 crore allocated entirely from government funding. The renewed focus is on empowering a larger segment of Assam’s youth to become self-reliant and contribute to the state’s economic growth.
What was announced
The SVAYEM Scheme, announced by the Finance Minister of Assam in his budget speech on February 7, 2017, provides financial support to youths for various income-generating activities. The scheme was re-launched in 2020 with an enhanced budget and revised guidelines, aiming to benefit approximately two lakh youths with seed money to start business ventures.
Under the renewed scheme, individual beneficiaries receive Rs. 50,000 as seed money. For groups, the financial assistance scales up: groups with five members are entitled to Rs. 2.5 lakh, while groups with 10 members can receive Rs. 5 lakh, with a maximum limit of 20 members per group. The scheme is managed by the State Finance Department with the help of nodal agencies, a shift from its initial management by the Department of Industries & Commerce.
Why it matters
The SVAYEM scheme is crucial for Assam as the state grapples with significant youth unemployment. According to the Economic Survey of Assam 2023-24, the state’s overall unemployment rate for those aged 15 and above stood at 3.9 percent in 2023-24, an increase from 1.7 percent in 2022-23, and above the national average of 3.2 percent. Urban areas face higher stress, with an unemployment rate of 7.4 percent.
The scheme directly addresses this challenge by promoting entrepreneurship and creating self-employment opportunities, thereby reducing reliance on traditional job markets. Chief Minister Himanta Biswa Sarma has emphasised the government’s aim to empower youths to become “model entrepreneurs and farmers capable of engaging another 10-15 youths for a truly AatmaNirbhar Assam.” The initiative also supports micro and small business entities in manufacturing, trading, and service sectors, and aims to enhance the income level of traditional artisans.
Furthermore, the scheme encourages the development of new ventures and the growth of existing ones in both rural and urban areas, contributing to the state’s overall economic development.
Background
Assam has historically faced challenges in generating sufficient employment opportunities for its growing youth population. The Economic Survey Assam for 2023-24 highlighted a substantial increase in educated job seekers, with nearly 10 lakh fresh educated youths registering in employment exchanges in 2022, a seven-fold jump from 1.4 lakh in 2021. As of June 30, over 15.43 lakh individuals remain registered as unemployed across the state, with minimal job placements through employment exchanges.
In response, the Assam government has launched several initiatives to promote entrepreneurship and skill development. The SVAYEM scheme was initially introduced in 2017 but faced challenges, reportedly benefiting only around 7,000 youths instead of the targeted one lakh due to insufficient bank support. Recognizing these limitations, the government re-launched the scheme in 2020, with a focus on direct government funding without immediate banking linkage for the seed money component, to ensure wider reach and smoother implementation.
Other government initiatives, such as “Startup Assam,” aim to create a robust startup ecosystem, promoting entrepreneurship and empowering youth to become job creators. The state’s MSME sector, which employs around 1.5 million people and contributed 34.54 percent of Assam’s Gross State Domestic Product (GSDP) in 2019-20, is a key focus area for such schemes.
Key details
The SVAYEM scheme is open to permanent residents of Assam who are above 18 years of age. While there is no income ceiling for assistance, individual beneficiaries should possess skills, experience, or knowledge relevant to their chosen income-generating activities. A minimum educational qualification of at least Class VII standard is required, with preference given to those who have completed Skill Development Training.
Beneficiaries must not be defaulters of any loan and PMEGP beneficiaries of the last five years are not eligible. The scheme covers a wide range of activities including manufacturing, processing, service sector, trading, rural transport services (like auto-rickshaws and e-rickshaws), tourism, shops, repairing centres, handicrafts, and cottage industries.
Beyond the seed money, the scheme also facilitates bank loans: up to Rs. 1 lakh for new entrepreneurs and up to Rs. 2 lakh for existing entrepreneurs. Beneficiaries are expected to contribute a maximum of 25 percent of the total project cost. A subsidy of 20 percent (up to Rs. 20,000) is provided for new entrepreneurs and 40 percent (up to Rs. 40,000) for existing entrepreneurs on the sanctioned loan amount.
Selected candidates are required to undergo a compulsory training program of three to five days, often conducted by institutions like the Indian Institute of Entrepreneurship (IIE). A training allowance is also provided post-completion.
What’s next
The SVAYEM scheme remains an ongoing initiative by the Government of Assam, continually seeking to expand its reach and impact. The government has indicated a commitment to further extending the scheme, with plans to include more beneficiaries in subsequent phases. Recent reforms, such as allowing eligible rural youths to establish small industrial and Khadi units on agricultural land without prior land conversion approval, are expected to further simplify the process for entrepreneurs and boost rural enterprises.
Chief Minister Sarma has repeatedly emphasized the government’s focus on youth empowerment and job creation through self-employment, aligning with the vision of a self-reliant Assam. The continuous implementation and periodic review of schemes like SVAYEM underscore the state’s long-term strategy to address unemployment and foster an entrepreneurial ecosystem.
Sources & References
Source: myScheme.gov.in – Swami Vivekananda Assam Youth Empowerment (SVAYEM) Scheme