Women’s enterprise footprint expands across India’s formal economy

Nearly 3.69 crore women-owned MSMEs and more than 1.07 lakh startups with at least one female director or partner point to a broadening role for women in India’s formal economy.

Official data released this week shows that women now own nearly 3.69 crore registered micro, small and medium enterprises in India, representing about 38% of all MSME registrations, underscoring the expanding role of women in the country’s formal business economy.

The figures, published in a...

government factsheet dated 15 October 2026, also point to a broader rise in women’s participation in the labour market. The female labour force participation rate for those aged 15 and above climbed from 23.3% in 2017-18 to 40% in 2025, while the corresponding worker population ratio increased from 22% to 38.8% over the same period. The factsheet estimated that about 20 crore women aged 15 and above were employed in 2025.

The increase in women’s ownership of enterprises comes alongside a sharp rise in women’s presence in India’s startup ecosystem. According to the same government-backed data cited by IANS, more than 1.07 lakh recognised startups now have at least one woman director or partner, accounting for roughly 48% of all recognised startups. The trend suggests that women are increasingly visible not only in traditional small business ownership, but also in the country’s newer innovation-led ventures.

Manufacturing has been one of the clearest examples of that shift. The factsheet said women made up nearly 70% of the direct workforce in mobile phone manufacturing as of July 2026. In the wider electronics manufacturing sector, women accounted for almost 30% of the jobs created over the last decade, indicating that industrial expansion is drawing in a larger female workforce than in previous years.

The government says this progress is being supported by policies aimed at improving access to safer workplaces, social protection, entrepreneurship support, formal registration and finance. Those measures are intended not just to increase the number of women entering work, but to help them move into more stable and better-paid forms of employment.

Among the measures highlighted is the Swavalamban Scheme, which is designed to guide young women from the idea stage to enterprise formation through entrepreneurship training, financial support, market advice and legal assistance. Participants can also receive 21 weeks of mentorship and handholding support as they establish their businesses.

Another initiative, the Yashasvini campaign, seeks to raise women’s entrepreneurship and bring greater balance to the Udyam Registration Portal and the Udyam Assist Platform by 2029. By July 2026, the campaign had helped secure more than 22 lakh registrations for women-owned MSMEs, according to the factsheet.

The public procurement picture has also improved. Government purchases from women-owned micro and small enterprises reached 3.8% in FY26, above the mandated 3% target. Officials say this kind of market access is crucial because it gives women-led firms a more predictable route to scale, while also encouraging formalisation.

The latest numbers build on earlier official data that showed women’s business ownership was already rising. A March 2023 press release from the Press Information Bureau said there were 1.47 crore MSMEs registered at the time, of which 27.75 lakh were women-owned. That same release recorded substantial credit support for women entrepreneurs during 2022-23 through the Credit Guarantee Scheme and the Prime Minister’s Employment Generation Programme.

Taken together, the figures suggest that women’s economic participation in India is no longer confined to a narrow set of sectors or support programmes. From small enterprises and startups to manufacturing and formal procurement, the data points to a widening footprint for women in the country’s organised economy.

Source: Noah Wire Services