Women-owned MSMEs constitute 39% of India’s sector

At present, there are over 1.84 crore women-owned MSMEs in the country. The government has implemented several initiatives to boost women’s participation in MSMEs, including the 2018 amendment to the Public Procurement Policy. This policy requires central ministries and departments to procure at least 3% of their annual purchases from women entrepreneurs, aiming to support and benefit women-led businesses.

According to MSME Minister Jitan Ram Manjhi, as of July 25, 2024, 39% of the Micro Small and Medium-sized enterprises (MSMEs) registered with the MSME Ministry under the 2020 revised definition, are owned by women. This includes 1.84 crore women-owned enterprises out of about 4.78 crore Udyam-registered units, including those registered through the Udyam Assist Platform (UAP) since January 2023.

The Minister said, “The percentage of women owners of Micro, Small, Medium Enterprises (MSMEs) registered on Udyam and Udyam Assist Platform (UAP) since the launch of Udyam on 01.07.2020 and the launch of UAP on 11.01.2023 in the country is 39 per cent.” 

The Minister highlighted various initiatives aimed at supporting women entrepreneurs. The 2018 amended Public Procurement Policy mandates that Central Public Sector Enterprises (CPSEs) must procure at least 3% of their annual purchases from women-owned businesses. 

Additionally, the Credit Guarantee Scheme for Micro and Small Enterprises, effective December 1, 2022, offers women entrepreneurs enhanced support: a guarantee coverage of up to 85% (compared to 75% for others) and a 10% reduction in annual guarantee fees.

In June 2024, the MSME Ministry introduced the Yashasvini initiative to further support women entrepreneurs in Tier-II and III towns by building their skills and capabilities. These policy initiatives highlight the government’s commitment to building an inclusive business environment and supporting women entrepreneurs.

In comparison, as of August 1 last year, women-owned units comprised 19.43% of over 2.10 crore MSMEs, according to government data reported by FE Aspire. This count included enterprises registered through the Udyam Assist Platform (UAP).