09 March, 2025 | 11:00 IST
India's workforce is witnessing a transformative shift, with female participation rising to unprecedented levels. According to the Economic Survey 2025, the Female Labour Force Participation Rate (FLFPR) has nearly doubled over the past seven years, rising from 23.3% in 2017-18 to 41.7% in 2023-24. This growth has been fueled by an influx of rural women entering the workforce, alongside various government initiatives to empower female entrepreneurs.
As we celebrate Women’s Day 2025, let’s take a look at the women-led startup ecosystem in India and how the rising female workforce could contribute to future growth.
The increase in female participation spanned across the country. In 2017-18, 20 states and Union Territories had an FLFPR below 20%. By 2023-24, this number had dwindled to just three. Today, 21 states report an FLFPR between 30% and 40%, while seven states and UTs have surpassed the 40% mark. Leading the charge is Sikkim with the highest FLFPR at 56.9%.
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The Economic Survey also stated that women have been key beneficiaries of various initiatives to boost entrepreneurship. The government introduced various initiatives to improve access to credit, marketing, skill development and startup support. Schemes such as the PM Employment Guarantee Programme, SANKALP, PM Micro Food Processing Scheme, Adivasi Mahila Sashaktikaran Yojana, Swayam Shakti Sahakar Yojana and DAY-NRLM are helping women entrepreneurs by providing financial aid, training and mentorship, enabling them to establish and expand their businesses.
The Economic Survey 2025 highlighted a surge in women-led startups, underscoring the role of policy interventions in ensuring female entrepreneurship.
Around 73,151 startups led by women entrepreneurs were recognised under the Startup India Initiative as of October 31, 2024, highlighting the growing role of women in India’s startup ecosystem.
To further support women entrepreneurs, the government has implemented a series of financial incentives like:
Overall, India’s startup ecosystem is seeing huge growth, with an increasing number of women entrepreneurs driving innovation and economic progress.
According to Tracxn, as of March 4, 2025, the country boasts 4.37 lakh startups, with 29,600 funded ventures collectively raising $557 billion in venture capital and private equity. But, turning an idea into a thriving business requires more than just vision — it demands financial backing. Without adequate funding, startups often struggle. Apart from government schemes, loans from banks and non-banking financial companies (NBFCs) can also help women to fund their business ventures.
The budding women entrepreneurs can explore multiple personal loan offers on Moneycontrol from eight lenders. Through the Moneycontrol app and website, the borrowers can apply for loans up to Rs 50 lakhs. The interest rates start as low as 10.5% per annum and it’s a completely digital process.
Despite the progress, women-led businesses still face several challenges. Currently, only 22% of Micro, Small, and Medium Enterprises (MSMEs) are owned by women, pointing to the need for continued intervention.
Initiatives such as the Women Entrepreneurship Platform (WEP) and WE Hub are working to bridge these gaps, providing mentorship, market access and financial literacy programmes to aspiring female entrepreneurs.
In conclusion, the Economic Survey paints an optimistic picture for women in India, with workforce participation reaching new heights and women-led businesses flourishing. While challenges remain, the trajectory seems promising, driven by sustained policy support, financial inclusion and a growing recognition of women as key drivers of economic growth.
The women entrepreneurs can access more funds through personal loans on the Moneycontrol’s digital lending platform. As many as eight lenders have teamed up with Moneycontrol to offer personal loans up to Rs 50 lakhs. The interest rates for these loans start at 10.5% per year and the 100% digital process ensures quick disbursal.
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