Women-owned MSMEs have seen a spurge in India.
The country now has over 1.84 crore women-owned MSMEs, marking a significant development for the nation’s economic landscape.
The announcement underscores the growing role of women entrepreneurs in India’s business ecosystem.
Policy push:
Since launch of the Udyam and Udyam Assist Platforms (UAP) in July 2020 and January 2023, women owners have accounted for 39% of MSMEs registered. As of July 23, 2024, there are 1,84,59,809 MSMEs owned by women, Jitan Ram Manjhi, Union Minister, Micro, Small, and Medium Enterprises, said during question hour in the on-going Monsoon session in the Parliament.
Among the programs to boost the involvement of women in the MSME industry, the government amended the Public Procurement Policy in 2018. It now mandates central ministries, departments, and undertakings to obtain at least 3 percent of their annual requirements from women entrepreneurs.
The GoI has also implemented policies to improve women-owned MSMEs’ access to credit. One of the policies to improve financing options for women-owned MSMEs, offers up to 85% guarantee coverage and a 10% reduction on annual guarantee fees.
The government aims to create an inclusive business environment and empower women entrepreneurs, with the rise of women-owned MSMEs expected to significantly impact India’s economy.
Our take:
India’s economic self-sufficiency and diversity are being bolstered by MSMEs, which are driving job creation, innovation, and economic expansion, promoting gender equality and women empowerment.
The future of the MSME sector will be marked by the impact of government initiatives on female entrepreneurs and the economy as a whole.