India’s Women-Owned MSMEs Rise to 2.2 Crore

December 13, 2024

In recent years, India has witnessed a remarkable increase in women-led businesses. Over 2.2 crore women-owned Micro, Small, and Medium Enterprises (MSMEs) have been registered through various government initiatives, which has been boosted by the updated MSME definition introduced on July 1, 2020.

Registration Statistics

On November 30, 2024, there are 2,20,73,675 women-owned MSMEs registered on the Udyam Registration Portal (URP) and Udyam Assist Platform (UAP). In Rajasthan’s Tonk and Sawai Madhopur districts, women-led MSMEs constitute 13% of all local businesses. Valsad district in Gujarat boasts 11,942 women-led enterprises, accounting for 18.24% of its total businesses.

Government Initiatives

The government has implemented several initiatives to promote women’s entrepreneurship. Special registration drives aim to facilitate the formal registration of women-led enterprises. The revised 2018 Public Procurement Policy mandates that 3% of annual purchases by Central Ministries and Public Sector Undertakings (PSUs) must be sourced from women entrepreneurs, enhancing their market access.

Financial Support

Financial assistance has been a priority for women-led businesses. The Credit Guarantee Scheme for Micro and Small Enterprises (MSEs) offers a 10% discount on guarantee fees for women, with 90% coverage compared to 75% for male counterparts. The Prime Minister Employment Generation Programme (PMEGP) provides credit-linked subsidies, with women receiving 25% in urban areas and 35% in rural areas, exceeding the rates available to other entrepreneurs.

Skill Development Programs

Various skill development initiatives support women artisans. The ‘Skill Upgradation and Mahila Coir Yojana’ focuses on training, while the Procurement and Marketing Support Scheme fully subsidises participation in trade fairs. The ‘Yashasvini Campaign,’ launched in June 2024, further aids women entrepreneurs by offering resources for formalisation, credit access, capacity building, and mentorship.

GKToday Facts for Exams:
URP – The Udyam Registration Portal facilitates the registration of MSMEs in India. It aims to simplify processes and enhance accessibility for women entrepreneurs.
UAP – The Udyam Assist Platform supports women-led businesses. It provides resources and guidance for entrepreneurs to navigate challenges and improve their business operations.
PMEGP – The Prime Minister Employment Generation Programme offers credit-linked subsidies. It aims to promote self-employment and entrepreneurship, particularly among women in urban and rural areas.
Yashasvini Campaign – Launched in June 2024, the Yashasvini Campaign supports women entrepreneurs. It focuses on formalisation, credit access, capacity building, and mentorship for sustainable business growth.

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