Womenpreneurs Vital for India's Economic Growth: Economic Survey

By: WE Staff | Thursday, 29 January 2026

• The total workforce in India is over 56 crores, which is a major contributor to the economy
• According to the Economic Survey 2025-26, the total labor force participation is increasing, and unemployment is declining

According to the Indian Economic Survey 2025-26, there are now more than 56 million workers in India, and women's role is becoming increasingly significant in employment and entrepreneurship.

Key to achieving inclusive growth by increasing the participation of the workforce in the labour market, reducing unemployment, and creating employer and job opportunities in the organised and unorganised sectors is increasing the number of people in the workforce and reducing unemployment rates.

The Economic Survey highlights a shift away from focusing on the number of jobs created within an economy, to also considering the quality of jobs; and creating sustainable job opportunities, especially for women.

To this end, structural changes, policies and new labour codes are being developed to create opportunities for workers and achieve greater labour market flexibility while at the same time providing welfare for workers.

From 2017-18 to 2023-24, the Female Labour Force Participation Rate (FLFPR) increased from 23.3 percent to 41.7 percent and the unemployment rate decreased from 5.6 percent to 3.2 percent, providing clear evidence of women's economic inclusion.

The proportion of female entrepreneurship is rising and thus is the number of businesses owned by women (i.e., in manufacturing, the percentage of businesses owned by women has increased from 24.2 percent in 2021 to 26.2 percent in 2024).

The increase in support for women entrepreneurs is due, in part, to the incorporation of Self-Help Groups (SHGs) into the MSME ecosystem, which has expanded women's access to credit, procurement opportunities, and mentorship programs.

Several government initiatives, such as the WE Hub in Telangana and the Kudumbashree initiative in Kerala, have contributed to the establishment and maintenance of resources for the new women entrepreneurs who enter into previously male-dominated business sectors, including logistics and construction.

Despite these advancements, many obstacles still impede women from being successful entrepreneurs. Women who have established businesses still experience obstacles, such as limited mobility, various modes of transportation, inconsistent hours of work, and no affordable housing.

In order to support women in attaining jobs in higher paying industries such as white collar services and modern manufacturing, the report highlights the need to increase the availability of STEM education and the opportunities to learn skills.