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Why Women Artisans Drive India's Economy Yet Lag In MSME Leadership

The Economic Survey, which was released a day before the Union Budget on 1 February, showed how over half of the artisans in India were women, yet they make up for a surprisingly low percentage of MSME(Micro, Small and Medium Enterprises).

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Kavya Shukla
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Image: India Development Review

The Economic Survey of 2025, which is a general hallmark for the economic condition of the country, showed how over 50% of India’s artisans are women, but only 22% of MSMEs (Micro, Small and Medium Enterprises) are women-led. Quoting a World Bank report (Gupta et al., 2024), the Economic Survey 2024-25 stated that out of the nearly 4.96 lakh people engaged in the khadi sector, over 80% are women artisans. More than 50% of people employed in sericulture are women. Even in handicrafts, 56.1% of workers are women.

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Where Are India's Women Entrepreneurs?

However, ownership in entrepreneurship continues to be predominantly held by men. Women entrepreneurs own only 22% of all micro, small, and medium enterprises (MSME). Diving further, as the size of the enterprise increases from micro to small and then to medium, women’s share in ownership drops from 22% to 12% and further to 7%, respectively,” the Economic Survey noted.

“Rural women entrepreneurs face additional challenges, including limited business skills, market access, and technology gaps, compounded by a lack of mentorship and networking. Streamlining support through credit linkages, sensitising bankers, and efficient delivery mechanisms is essential. Cost-effective strategies, such as raising awareness, providing skill training, and improving access to government benefits, can empower women entrepreneurs,” it read. Not having ownership is deleterious for women, as it increases the chances of exploitation and not getting the full benefits of their hard work.

A Universal Phenomenon

The survey at the same time reflected on how ubiquitous this issue is. As per a report on gender diversity, women hold less than one-quarter of the world’s board seats (23.3 per cent in 2023). Across India Inc., women only held 18.3 per cent of board seats in 2023.

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A UN Women's assessment quoted in the report suggests that “women's entrepreneurship tends to be necessity-driven, concentrated in low-risk segments and fewer sectors which are not too growth-oriented and tap into the local environment that allows them to bypass financial, regulatory and technical constraints.”

The Positives For Women From The Survey

Apart from the increasing participation of women in the labour participation rate, there were other positive takes of the Economic Survey. A pleasant note was the increase of patent registrations by women from 2015 to 2025. Patent filings by women applicants increased from 15 in FY15 to 5183 in FY24. This doesn't mean that it was the last decade when women started getting new ideas worth selling, it just means that in the last decade, they understood more the importance of monetizing, protecting and taking credit for their inventions and work in general.

In non-agricultural activities, real wage growth was particularly noteworthy for women, reaching 2.6 per cent, compared to 0.4 per cent for men during the same period. 

The share of women among those trained under Pradhan Mantri Kaushal Vikas Yojana (youth training program) has increased from 42.7 per cent in 2015-16 to 58.0 per cent in 2024-25. In the long-term ecosystem, i.e., in ITIs and National Skill Training Institutes (NSTIs), women's participation has increased from 9.8 per cent in 2015-16 to 13.3 per cent in 2023-24. Participation of women has increased from 7.7 per cent in 2016- 17 to 22.8 per cent in 2024-25 (up to 31 October 2024) under the National Apprenticeship Promotion Scheme (NAPS).

Nirmala Sitharaman budget
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