Govt Announces Major Boost to Women-Led MSMEs & Modernisation Drive

For decades, India’s Micro, Small and Medium Enterprises (MSMEs) have quietly powered the country’s economic rise—fueling jobs, supplying essential goods, and anchoring the entrepreneurial spirit across both metros and small towns. But as the world economy undergoes rapid shifts in technology, skill demands, and global market access, India’s MSMEs find themselves at a critical crossroads.

The Union Government signalled a strong commitment to steering this sector into its next phase of growth—one that is digitally enabled, globally competitive, and significantly more inclusive. In a written reply to the Lok Sabha, Minister of State for MSMEsShobha Karandlaje outlined a sweeping set of interventions designed to modernize enterprises, upgrade skills, and dramatically elevate women-led entrepreneurship across India.

Her message was clear: if MSMEs are the “vibrant pillar of the Indian economy,” the Centre intends to fortify that pillar with stronger technology, easier credit, and far wider participation from women and small-scale innovators.

A Sector the Government Calls the ‘Vibrant Pillar’ of India’s Economy

In her statement, the Minister reiterated that MSMEs are not just units of production—they are job creators, innovation hubs, and crucial contributors to India’s manufacturing and services backbone. From traditional artisans to modern startups, these enterprises fuel employment and regional development at scale.

To keep this momentum going, the Centre continues to work closely with all States and Union Territories, deploying schemes that address everything from entrepreneurial skilling to credit facilitation and cluster-based modernization.

The Power Pack: Government Schemes Accelerating MSME Growth

The government’s support system for MSMEs stretches across multiple flagship initiatives, each addressing a key gap—be it funding, training, innovation, or infrastructure.

The Minister highlighted the following major schemes:

• Prime Minister’s Employment Generation Programme (PMEGP)

• PM Vishwakarma Scheme

• Credit Guarantee Scheme for Micro and Small Enterprises

• Entrepreneurship & Skill Development Programme

• MSE–Cluster Development Programme (MSE-CDP)

• Raising and Accelerating MSME Performance (RAMP)

• MSME Champions Scheme

Together, these programmes are enabling self-employment, boosting enterprise readiness, and equipping MSMEs to compete more effectively in both domestic and global markets.

A Modern, Inclusive Future: Key Initiatives Transforming the MSME Landscape

A defining theme in the Centre’s approach is modernization with inclusivity—ensuring women entrepreneurs, artisans, and marginalized groups gain equal access to technology, markets, and government benefits.

Here’s how the government is pushing the envelope:

1. Technology Centres & Tool Rooms

A national network of advanced manufacturing hubs and skill centres provides MSMEs access to cutting-edge tools, high-end machinery, and industry-relevant training.

This is helping small businesses upgrade to modern production standards, reducing their costs while improving output quality.

2. Special Drives for Women-Owned MSMEs

Targeted campaigns are underway to bring women-led enterprises onto the Udyam Registration and Udyam Assist platforms—an essential step toward formalization, credit access, and government support.

3. Women Procurement Mandate

Government departments and CPSEs are required to source at least 3% of their annual procurement from women-led micro and small enterprises.

This policy not only guarantees market access but also gives women-led businesses the confidence to scale.

4. PMEGP Favouring Women Entrepreneurs

Women now make up 39% of all PMEGP beneficiaries, and they receive a higher subsidy of up to 35%, compared to 25% for general-category applicants—an incentive with huge potential for expanding women-led microenterprises.

5. Mahila Coir Yojana: Strengthening Women in the Coir Sector

Under the Coir Vikas Yojana, the government is running a dedicated skill upgradation programme for women artisans in the coir industry—a vital livelihood generator in many coastal regions.

6. PM Vishwakarma Scheme

Launched in September 2023, the scheme supports traditional craftsmen and artisans across 18 trades. Women artisans, in particular, stand to benefit from financial support, modern toolkits, and structured training.

7. ‘Yashasvini’ Awareness Campaign

An outreach initiative designed to walk existing and aspiring women entrepreneurs through mentorship, handholding, and capacity-building modules—helping them navigate the complexities of starting and scaling a business.

Cluster Development: Building Stronger, Smarter MSME Communities

The government’s MSE–Cluster Development Programme (MSE-CDP) is one of the strongest levers for industrial modernization. Instead of upgrading businesses one at a time, CFCs and cluster infrastructure allow entire industrial pockets to benefit from shared facilities and technologies.

So far, the government has completed:

• 113 Common Facility Centres (CFCs)

• 251 Infrastructure Development projects

These centres improve productivity, enable technology adoption at scale, and help MSMEs integrate seamlessly into domestic and global value chains.

A Holistic Push for Empowered, Competitive MSMEs

From credit access to infrastructure, from skilling to procurement support—the Centre’s multi-layered interventions reflect a long-term, structured strategy to make MSMEs more resilient and future-ready.

The Minister emphasized that this integrated approach is crucial for creating:

• a more competitive MSME sector,

• a more inclusive entrepreneurial ecosystem, and

• a more innovation-intensive economy.

As India eyes its ambition of becoming a global manufacturing hub and a $5 trillion economy, the strength of its MSME backbone—and the empowerment of millions of women entrepreneurs—may prove to be one of its most defining advantages.