Empowering Women Entrepreneurs: The Surge of Women-Owned MSMEs in India

Since the revised definition of Micro, Small, and Medium Enterprises (MSMEs) was adopted on July 1, 2020, India has witnessed a significant increase in women-owned MSMEs. As of November 30, 2024, a total of 22,073,675 women-owned MSMEs have registered on the Udyam Registration Portal (URP) and the Udyam Assist Platform (UAP).

State-wise Distribution and Highlights

The distribution of women-owned MSMEs varies across states and union territories, reflecting regional dynamics and the effectiveness of localized support systems. Notable statistics include:

• Andhra Pradesh: 1,332,126 women-owned MSMEs, accounting for 53% of the state’s total MSMEs.
• Bihar: 1,525,287 women-owned MSMEs, representing 50% of the state’s MSMEs.
• Karnataka: 1,656,845 women-owned MSMEs, constituting 45% of the state’s MSMEs.
• West Bengal: 2,486,603 women-owned MSMEs, making up 62% of the state’s MSMEs.

These figures underscore the substantial contributions of women entrepreneurs to regional economies.

District-Level Insights

At the district level, certain areas have demonstrated notable participation of women in the MSME sector:

• Tonk and Sawai Madhopur Districts (Rajasthan): A combined total of 7,803 women-owned MSMEs have been registered, accounting for 13% of the total MSMEs in these districts.
• Valsad District (Gujarat): 11,942 women-owned MSMEs have been registered, representing 18.24% of the district’s total MSMEs.

These district-level insights highlight the localized impact of women entrepreneurs within their communities.

Government Initiatives Enhancing Women’s Participation

The Indian government has implemented several initiatives to bolster women’s involvement in the MSME sector:

1. Special Registration Drives: Focused efforts to encourage women-owned MSMEs to register on official platforms, facilitating access to various benefits and schemes.
2. Public Procurement Policy Amendment (2018): Mandates that central ministries, departments, and undertakings procure at least 3% of their annual requirements from women entrepreneurs, promoting market access.
3. Credit Guarantee Scheme for Micro and Small Enterprises (MSEs): Offers a 10% concession in annual guarantee fees and provides 90% guarantee coverage to women-owned MSEs, compared to 75% for other entrepreneurs, enhancing access to credit.
4. Prime Minister Employment Generation Programme (PMEGP): A credit-linked subsidy program aimed at generating self-employment opportunities through the establishment of micro-enterprises. The subsidy rate for special category beneficiaries, including women, is 25% in urban areas and 35% in rural areas.
5. Procurement and Marketing Support Scheme: Provides 100% subsidized participation for women entrepreneurs in trade fairs, compared to 80% for other entrepreneurs, facilitating market exposure.
6. Skill Upgradation and Mahila Coir Yojana: An exclusive training program under the Coir Vikas Yojana aimed at skill development of women artisans engaged in the coir sector, enhancing their technical competencies.
7. Yashasvini Campaign (Launched on June 27, 2024): Aims to empower women entrepreneurs across India through various schemes focusing on formalization, access to credit, capacity building, and mentorship.

These initiatives collectively aim to create a more inclusive and supportive ecosystem for women entrepreneurs in India.

Conclusion

The substantial increase in women-owned MSMEs since the adoption of the revised definition in 2020 reflects the effectiveness of targeted government initiatives and the entrepreneurial spirit of women across India. Continued support and tailored programs are essential to sustain and further this growth, ensuring that women entrepreneurs can thrive and contribute significantly to the nation’s economic development.

Note:
The data and insights presented in this article are sourced from official reports and media releases by the Ministry of Micro, Small, and Medium Enterprises (MSME), Government of India. The primary reference includes the press release titled “Women Owned MSMEs” dated December 12, 2024, published by the Press Information Bureau (PIB). For more details, visit MSME Ministry Reports and Press Information Bureau.