The Economic Survey 2024-25, presented in Parliament, revealed that 48% of India’s 152,139 DPIIT-recognized startups have at least one woman director. A total of 73,151 startups with female leadership underscores progress in women’s representation in business. However, ownership and control of these enterprises remain largely in the hands of men, reflecting ongoing gender disparities in entrepreneurship.
Rise in Female Workforce Participation
For the first time in seven years, India’s Female Labour Force Participation Rate (FLFPR) has seen a significant increase. It surged from 23.3% in 2017-18 to 41.7% in 2023-24, driven largely by rural women entering the workforce. The economic survey attributed this rise to expanding job opportunities, government support programs, and grassroots economic empowerment initiatives.
In 2017-18, 20 states and Union Territories (UTs) reported an FLFPR below 20%. By 2023-24, this number dropped to just three. Currently, 21 states and UTs have an FLFPR between 30-40%, while seven exceed 40%. Sikkim leads the country with the highest FLFPR at 56.9%.
Government Support Driving Women Entrepreneurship
The government has implemented several initiatives to empower women entrepreneurs and boost their access to finance, mentorship, and skill development.
According to the Economic Survey, the Startup India Initiative has facilitated growth in women-led enterprises with key investments and programs, including:
- ₹3,107.11 crore invested in 149 women-led startups through Alternative Investment Funds (AIFs).
- The Startup India Seed Fund Scheme (SISFS) approved ₹227.12 crore for 1,278 women-led startups since April 2021.
- The Credit Guarantee Scheme for Startups (CGSS) provided ₹24.6 crore in loans for women-led ventures.
These measures have helped increase women’s participation in the startup ecosystem, contributing to the broader economic goals of inclusive growth and gender parity.
Impact of Grassroots Programs on Rural Women
The rural Female Labour Force Participation Rate saw a significant leap from 24.6% in 2017-18 to 47.6% in 2023-24, driven by targeted government programs aimed at economic empowerment. This improvement reflects efforts to create job opportunities and improve access to credit for women in rural areas.
Experts believe that continued focus on such initiatives will further strengthen the country’s entrepreneurial ecosystem, enabling more women to participate actively in both business and employment sectors. The government’s emphasis on women-centric policies aligns with India’s vision of fostering sustainable economic development and social equity.
