Micro, Small and Medium Enterprises (MSMEs) in India continues to remain central to the economy with women gaining a firm foothold in the sector as budding entrepreneurs.
Women’s presence in the Indian MSME sector has seen an increasing trend, with women entrepreneurs constituting about 40% of total MSMEs in India, as per the Economic Survey 2025–26.
Along with this, the continuing trend in Female Labour Force Participation Rate (FLFPR) also shows the increased presence of women in the economy and workforce.
Despite of ongoing developments, women entrepreneurs continue to face several constraints that impact their business growth, skills development, while network constraints result in lower property ownership. As women take on larger roles in India’s business economy, access to finance, skills, technology, and markets remains critical to sustaining their growth.
How the Indian Government is Empowering Women Entrepreneurs & MSMEs?
Indian economy’s rise highlights women re-writing rules of contemporary economy. Building momentum for sustained change, the Indian government recognizes women-led MSMEs as an integral part of the country’s formal business ecosystem.
This growing participation is reflected in the latest data by Ministry of Micro, Small & Medium Enterprises, with more than 3.42 crore women registered under Udyam and Udyam Assist up until June 2026.
Special programs offered by the Indian government are vital in providing access to financial aid, skills training, technological adaptation, and market reach for women-entrepreneurs. The focus here lies beyond promoting women participation in the MSME ecosystem, rather it enables women entrepreneurs to formalize their business operations and grow within the emerging entrepreneurial ecosystem of India.
In this light, the following government schemes aims at empowering women entrepreneurs by providing financial assistance, overall support, mentorship, and skills training among other advantages. These financial and developmental schemes provide access to easy loan procurement, national and global market platform with surety and security.
Explore the curated list of seven impactful government schemes for women-led startups in India. From scheme overviews to application process, delve into the financial and developmental schemes designed by the Indian government for women entrepreneurs.
1. Trade Related Entrepreneurship Assistance and Development (TREAD)
Trade Related Entrepreneurship Assistance and Development program is a scheme run under the Ministry of Ministry of Micro, Small & Medium Enterprises. It aims to help female entrepreneurs get access to easy finance, training, counseling, and entrepreneurship skills. The scheme is designed for helping the non-farm micro enterprises, and provides assistance to women enterprises who want to venture into enterprises such as agro processing, handicrafts, handlooms, food processing, candles, agarbatti manufacturing, and readymade garments.
However, women are not allowed to apply individually and directly under the TREAD Scheme. They can only apply through a registered NGO or Self-Help Group (SHG), which helps prepare the business proposal and submits it to the designated bank or lending institution.
Scheme at a Glance:
Loan Amount: 30% government grant + 70% bank loan
Sector: Non-farm, micro-enterprises
Documents Required: The beneficiary requires government identity proofs, address proof, description of proposed business plan, and various other documents as required
How to Apply: You can visit the Office of the Development Commissioner (MSME) or partner lending banks.
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