Economic Survey 2025: Women Led Startups Hit Record Highs

How has India’s female workforce grown in the past seven years, and what’s driving the surge in women-led startups? Explore the transformative shift in women’s participation and entrepreneurship across the country.

author-image
Shreshtha Verma
New Update
Economic Survey 2025 Women Led Startups Hit Record Highs

In an unprecedented leap, India’s female labour force participation rate (FLFPR) has more than doubled over the past seven years, signaling a transformative shift in the country’s workforce dynamics. As highlighted in the Economic Survey 2024-25, tabled by Finance Minister Nirmala Sitharaman, FLFPR surged from 23.3% in 2017-18 to an impressive 41.7% in 2023-24. This remarkable growth is not just a number on paper; it reflects the changing socio-economic landscape of India and the rising prominence of women in both rural and urban areas.

Here TICE brings key highlights of how Indian Women are leading. 

A Changing Landscape: Rural Women Driving the Shift

The most significant contributor to this surge has been the growing participation of rural women in the workforce. Historically, rural areas had lower employment opportunities and higher socio-cultural barriers, but recent years have seen grassroots economic empowerment take center stage. Government initiatives, better access to financial support, and expanding employment avenues have created a more inclusive environment for women in rural India.

Read More: India’s Economic Survey 2025: Vision for Education & Human Capital

In 2017-18, rural female labour force participation stood at just 24.6%. By 2023-24, that number had rocketed to 47.6%, nearly doubling in just six years. This surge not only demonstrates the power of rural women but also emphasizes the importance of targeted policy interventions. The Economic Survey notes that rural women’s increased engagement in sectors like agriculture, manufacturing, and services has significantly contributed to the overall improvement in India’s labour market.

States Embrace Change: More Women in the Workforce

India’s diversity is mirrored in the variation of female workforce participation across its states and Union Territories (UTs). In 2017-18, a staggering 20 states and UTs had FLFPRs below 20%. Fast forward to 2023-24, and that number has dramatically shrunk to just three. This shift highlights a nationwide transformation in women’s workforce participation.

The number of states reporting FLFPRs between 30-40% has risen to 21, while seven states and UTs now boast FLFPRs exceeding 40%. Among these, Sikkim stands out with the highest FLFPR of 56.9%. This rise in female labour force participation is not limited to any one region or demographic but reflects a broader, more inclusive growth story across India.

The Economic Survey attributes this increase to a mix of expanding employment opportunities, government initiatives, and a broader societal acceptance of women’s roles outside the household. Policies like skill development programs, direct financial support, and entrepreneurship training are paving the way for women to step into new areas of work, particularly in non-traditional sectors.

Read More: India's Economic Outlook for FY26: Hoping Growth Amid Uncertainty

A New Wave of Women Entrepreneurs: Government Support Takes Centre Stage

As the female workforce expands, so too does the number of women-led businesses, marking a new era of entrepreneurship in India. The government’s commitment to promoting women entrepreneurship has been evident through various initiatives, and the results are encouraging.

According to the Economic Survey, over 73,151 startups with at least one woman director were recognized under the Startup India Initiative by October 31, 2024. This constitutes nearly half of all registered startups in India, showcasing the rising prominence of women in the entrepreneurial ecosystem.

To support these women-led ventures, the government has rolled out substantial financial backing and other assistance. For instance, ₹3,107.11 crore has been invested in 149 women-led startups through Alternative Investment Funds (AIFs). These investments are fostering a culture of innovation, helping female entrepreneurs bring their ideas to life and scale their businesses across India and beyond.

The Startup India Seed Fund Scheme (SISFS) has also been instrumental in providing ₹227.12 crore in funding to 1,278 women-led startups since April 2021. This initiative helps early-stage startups access the much-needed capital to take their ideas from concept to reality. Moreover, the Credit Guarantee Scheme for Startups (CGSS) has facilitated ₹24.6 crore in loans for women entrepreneurs, making it easier for them to access capital and grow their businesses without the burden of excessive collateral.

These initiatives, coupled with mentorship programs, skill development initiatives, and networking opportunities, are enabling Indian women to shatter the glass ceiling in business. No longer limited to traditional roles, women are now leading cutting-edge startups, from tech to e-commerce, social enterprises, and beyond.

The Road Ahead: The Momentum Continues

The progress highlighted in the Economic Survey is just the beginning. While the growth in women’s participation in the workforce and the surge in women-led startups are encouraging signs, there’s still work to be done. The road to gender parity in India’s workforce requires continued efforts from both the government and the private sector.

The focus must remain on ensuring that women have equal access to education, skill-building opportunities, and capital to compete on an equal footing with their male counterparts. Policies should continue to address systemic barriers that disproportionately affect women, particularly those in rural and underprivileged communities.

Read More: Budget Session 2025: PM Modi Presents Blueprint for India's Road to 2047

Moreover, the increasing number of women entering the workforce should also be accompanied by efforts to create a conducive environment for work-life balance, including flexible working hours, better childcare facilities, and greater social security.

With the right support systems in place, the future looks bright for women in India. As more women break barriers in business, technology, and other sectors, they are not just transforming their own lives but are also laying the foundation for a more equitable and prosperous future for the entire nation.

India’s female workforce is on the rise, and this surge, coupled with government support and a conducive environment for entrepreneurship, is creating a wave of change that is poised to shape the country’s economic future for years to come. The Indian woman is no longer a silent observer in the business world; she is now a leader, a creator, and a change-maker.

Join Our Thriving Entrepreneurial Community

TICE Social Media

Twitter: @TiceNews | LinkedIn: TICE News | Instagram: @tice.news | Google: Leave a Review