Women’s economic participation on the rise: Economic Survey 2024-25
Government schemes, skill development initiatives, and access to credit have helped increase workforce and entrepreneurial participation of women, according to the survey.
India’s female workforce and entrepreneurial participation have witnessed a notable transformation in recent years, according to the latest Economic Survey 2024-25. Government schemes, skill development initiatives, and access to credit have played a pivotal role in driving this shift, leading to increased labour force participation and entrepreneurship among women.
The female labour force participation rate has shown a significant rise—from 23.3% in 2017-18 to 41.7% in 2023-24. It has been driven largely by rural women entering the workforce. According to the survey, targeted policies such as the Deendayal Antyodaya Yojana - National Rural Livelihood Mission have helped women transition into diverse income-generating activities
Rural women's employment in agriculture has also seen a rise, from 73.2% in 2017-18 to 76.9% in 2023-24, even as male participation has declined due to a shift towards non-agricultural sectors. In urban areas, women’s employment remains concentrated in services in publishing, consultancy, information services, financial and insurance services, real estate, legal and accounting, even though there is a slight decline from 44.4% in 2017-18 to 40.1% in 2023-24.
Women-led enterprises on the rise
The country's entrepreneurial landscape has also seen increasing female representation, according to the survey, with 73,151 startups—recognised under the Startup India Initiative—having at least one woman director. This accounts for nearly half of all government-supported startups.
Since its launch in April 2021, the Startup India Seed Fund Scheme has approved Rs 227.12 crore in funding for 1,278 women-led startups, while the Credit Guarantee Scheme for Startups has facilitated loans worth Rs 24.6 crore.
However, despite progress, only 22% of micro, small, and medium enterprises (MSMEs) are owned by women, according to the survey. This further decreases as business size grows, with 12% ownership in small enterprises, and just 7% in medium enterprises
Increased access to digital platforms also empowers women entrepreneurs to participate in gig work, social commerce, and rural ecommerce. The Women Economic Empowerment Programme aims to impact 2.5 lakh women through digital financial inclusion by 2025.
Additionally, targeted initiatives such as the Women Entrepreneur Financial Empowerment Programme, in collaboration with the National Rural Livelihoods Mission, have improved credit access, formalisation, and business support for rural women entrepreneurs.
Why barriers still exist
Despite notable advancements, systemic barriers such as limited access to capital, skill gaps, and gender norms continue to hinder women’s economic participation. Fifty-five percent of women in the survey cited household and childcare duties as major obstacles to entering the paid workforce.
The survey emphasised that addressing these challenges through targeted policy interventions, childcare support, and skill development will be critical to sustaining and expanding female participation in India's economy.
Edited by Kanishk Singh
