Gender budgeting and women’s entrepreneurship in India’s MSME landscape

Dr Tulika Devi

(tulika29thjan@gmail.com)

The Ministry of Micro, Small and Medium Enterprises (MSME), one of the
most employment-intensive sectors in the country, has been increasingly aligning its programmes to ensure greater participation of women entrepreneurs and workers. In recent years, gender budgeting has emerged as a key instrument for translating India’s commitment to gender equality into actionable fiscal policy. Gender budgeting involves evaluating budgetary allocations through a gender lens to ensure that both men and women benefit equitably from government expenditure. The gender budget statement for 2025–26 reflects this shift, highlighting dedicated schemes and growing allocations for women-led enterprises.

The Ministry of MSME categorises its allocations into three parts, i.e., schemes with 100% benefit for women (Part A), those with 30–99% allocations for women (Part B) and those with less than 30% allocations (Part C). The total gender-sensitive budget under the MSME Ministry shows an encouraging trend, with allocations under women-centric and gender-inclusive schemes rising from Rs. 2,466.57 crore in 2024–25 (Revised Estimates) to Rs. 2,821.08 crore in 2025–26 (Budget Estimates).

Under Part A, the Mahila Coir Yojana is one of the few schemes exclusively designed for women. With a budget allocation of Rs.3.59 crore in 2025–26, it aims to empower rural women by providing training and assistance to set up coir-based micro-enterprises. The scheme has been instrumental in improving the livelihoods of women in coastal and coir-producing regions, promoting self-employment and sustainable industry practices.

Among the largest schemes in Part B, the Prime Minister’s Employment Generation Programme (PMEGP) has an allocation of Rs. 862.5 crore for 2025–26. It provides financial assistance to new micro-enterprises through bank credit and government subsidies. The program offers special incentives for women, including a higher subsidy rate and priority for project approval. Thousands of women have benefited from PMEGP by establishing small businesses in sectors like food processing, tailoring, handicrafts and services.

With an allocation of Rs. 8.2 crore in 2025–26, the Scheme for Promotion of Innovation, Rural Industry and Entrepreneurship (ASPIRE) seeks to nurture innovation and entrepreneurship in rural industries through incubation centres and technology support. It enables women to access mentoring and technology-driven business models, especially in agro-based and traditional sectors. By connecting innovation hubs to rural clusters, the scheme encourages women to adopt modern techniques in small-scale industries.

Allocated Rs 155.66 crore in 2025–26, the Scheme of Fund for Regeneration of Traditional Industries (SFURTI) aims to rejuvenate traditional and village industries by forming clusters of artisans and providing them with infrastructure, design support and marketing linkages. Many of these clusters, especially in the handloom, handicraft, and bamboo-based sectors, employ a significant number of women artisans, helping preserve cultural heritage while ensuring economic independence.

The Khadi Gramodyog Vikas Yojana, with an allocation of Rs. 200.03 crore in 2025–26, focuses on skill development, capacity building and marketing for khadi and village industries. Women constitute a substantial share of the workforce in khadi production and related activities. The scheme provides financial and institutional support to ensure their sustained income and employment.

With an ambitious allocation of Rs. 1,530 crore for 2025-2026 (Budget Estimates), the PM Vishwakarma scheme recognises and supports traditional artisans and craftspeople, including a large number of women engaged in trades like weaving, tailoring, pottery and embroidery. The scheme provides skill training, toolkits, collateral-free credit and marketing support to promote dignified livelihoods and intergenerational skill transfer.

The Entrepreneurship Skill Development Programme (ESDP), with Rs.38.4 crore in the 2025-26 budget, offers entrepreneurship and skill development training. It aims to equip women with managerial, financial and digital skills to run enterprises successfully. Through focused workshops and training camps, the programme has empowered thousands of women, particularly in rural and semi-urban areas. Other schemes like the Coir Vikas Yojana, Procurement and Marketing Support (PMS) and Studies, Publicity and International Cooperation (SPIC) also contribute to gender inclusion by promoting women’s access to markets, export opportunities and international cooperation platforms.

Women currently own around 20% of India’s MSMEs – an encouraging figure, yet one that highlights immense potential for further growth. Greater participation of women in the MSME sector contributes significantly to inclusive economic growth by generating employment and enhancing household incomes. Women entrepreneurs bring innovation and diversity to business ideas and management practices, enriching the entrepreneurial ecosystem. Their enterprises often promote sustainable development, as women tend to reinvest profits in areas such as education, health and community welfare. Moreover, since many women-led businesses are based in rural and semi-urban areas, they play a crucial role in strengthening local economies and promoting regional balance. Despite policy support, women entrepreneurs face hurdles such as limited access to credit, lack of collateral, low digital literacy and restricted exposure to markets. Social barriers and gender biases continue to constrain women’s mobility and participation in decision-making networks.

Experts emphasize that gender budgeting must evolve beyond the mere tracking of financial allocations to focus on actual outcomes and impact. Strengthening the ecosystem for women-led MSMEs requires a more holistic approach that addresses both financial and non-financial barriers. This includes building a robust system of gender-disaggregated data to better assess the effectiveness of interventions, introducing dedicated credit lines and guarantee funds to improve access to finance and expanding mentorship and incubation programmes to support women entrepreneurs at every stage of business development. Enhancing market linkages through e-commerce and digital platforms can open new opportunities for women to scale their enterprises and reach wider audiences. Equally important is greater inter-ministerial coordination to ensure that various schemes and policies across departments work in convergence, creating a cohesive and supportive framework for women’s entrepreneurship in India.

Gender budgeting in the MSME sector is not merely a financial exercise; it is a pathway to economic justice and sustainable development. By embedding gender sensitivity into programme design, implementation and monitoring, the government is ensuring that women are not just beneficiaries but active drivers of India’s growth story. Empowered women entrepreneurs will be central to realising the vision of Viksit Bharat @2047, a developed, inclusive and self-reliant India.