In September 2022, PM Modi highlighted a milestone in his speech at a mutual aid group meeting in Karahal, Madhya Pradesh. He proudly announced that a staggering 70% of the loans of Rs 19 lakh crore disbursed to small businesses across the country were secured by women entrepreneurs.
These endeavours underscore India’s commitment to promoting and nurturing women’s entrepreneurship. This comprehensive ecosystem includes government schemes and initiatives that empower women to pursue their entrepreneurial dreams, fostering economic growth and social empowerment. In this context, this article shall discuss the key government startup schemes for women entrepreneurs in India.
Promoting Women’s Entrepreneurship in India
In January 2016, the Government of India launched the Startup India registration aimed at boosting entrepreneurship and strengthening the country’s startup ecosystem.
In 2018, NITI Aayog, the policy think tank of the Government of India, took a significant step by launching the Women Entrepreneurs Forum. The platform is a connecting portal whose main objective is to connect professional women from different parts of India and create a conducive environment to maximize their entrepreneurial ambitions. This is an essential part of startup schemes for women entrepreneurs in India.
The Women’s Entrepreneurship Forum acts as an integrated platform with a variety of approaches to support women in the workforce. It creates strategic networks to provide women entrepreneurs with access to valuable information, educational seminars, awareness campaigns and opportunities for learning and development.
By focusing on these core sectors, India is taking major steps towards promoting and nurturing women entrepreneurship, with the aim of creating an inclusive and dynamic system in the country by including startup schemes for women entrepreneurs in India.
Government Startup Schemes for Women Entrepreneurs in India
Some of these prominent startup schemes for women entrepreneurs in India include:
1. Bharatiya Mahila Bank
The first in the range of startup schemes for women entrepreneurs in India is Bhartiya Mahila Bank.
- Objective: To facilitate businesswomen in starting new ventures in real estate or small and medium-sized enterprises within the retail sector.
- Loan Amount: Up to Rs 20 crore.
- Interest Rate Discount: 0.25% on a standard interest rate of 10.15% or more.
2. Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
An important part of startup schemes for women entrepreneurs in India is this scheme.
- Objective: Providing collateral-free credit to micro and small enterprises, eliminating the need for collateral security for loans up to Rs 1 crore.
- Special Provision: Women-led manufacturing enterprises can access credits of up to Rs 20 crore.
3. Dena Shakti Scheme
The Dena Shakti scheme is a very essential part of startup schemes for women entrepreneurs in India.
- Objective: Offering financial support to female entrepreneurs for horticulture, retail exchange, education, and housing.
- Loan Amount: Up to Rs 20 lakh.
- Micro-Credit: Additional micro-credit of up to Rs 50,000 available.
- Interest Rate Discount: 0.25% for women entrepreneurs holding the majority stake in their company.
4. Udyogini Scheme
The Udyogini scheme is another significant part of startup schemes for women entrepreneurs in India.
- Objective: Encouraging poor women entrepreneurs by providing financial support to start businesses.
- Eligibility Criteria: Women aged 18 to 45 with an annual family income of Rs 45,000 or less.
- Loan Amount: Up to Rs 1 lakh.
- Special Provisions: SC/ST category women receive an allowance of 30% of the loan amount or Rs 10,000, while general category women can get Rs 7,500 or 20% of the loan amount, whichever is lower.
5. Mahila Udyam Nidhi Scheme
Overview:
- Objective: Facilitating women entrepreneurs with the necessary capital for business maintenance.
- Usage: The funds can be utilised in the service, manufacturing, and production sectors.
- Loan Amount: Up to Rs 10,00,000 for starting small businesses.
6. Stree Shakti Scheme
Yet another startup scheme for women entrepreneurs in India is Stree shakti scheme.
- Objective: A State Bank of India (SBI) initiative to support women entrepreneurs owning and managing various retail trade and business enterprises.
- Eligibility Criteria: Women owning more than 50% of the enterprise.
- Loan Amount: Up to Rs 20 lakh.
- Interest Rate Discount: 0.50% concession on interest for credits exceeding Rs 2 lakh.
- Collateral Waiver: Security is not mandatory for loans up to Rs 5 lakh.
7. Stand-Up India
Overview:-
- Launch Year: 2016
- Objective: To promote entrepreneurship among women and marginalised groups.
- Financial Assistance: Provides loans and subsidies to support the establishment and expansion of businesses.
- Inclusivity: Aims to create an inclusive and equitable environment for women and other disadvantaged groups to start and grow their ventures.
8. Mahila E-Haat: Digital Marketplace for Women Entrepreneurs
Overview:
- Launch Year: Launched by the Ministry of Women and Child Development in India
- Objective: Establishes a digital platform for women entrepreneurs to showcase and sell their products and services online.
- Market Access: Provides a marketplace for women entrepreneurs, enabling them to expand their businesses.
- Comprehensive Platform: Serves as a one-stop shop for women entrepreneurs to exhibit their products, connect with peers, and access information and training in areas like digital marketing, e-commerce, and networking.
9. Pradhan Mantri Mudra Yojana (PMMY)
Overview:
- Launch Year: 2015
- Objective: To provide financial support to micro and small enterprises (MSEs), including women entrepreneurs.
- Financial Assistance: Offers loans to entrepreneurs for initiating and expanding their businesses.
10. Start-up India
The StartupIndia scheme is among the most important startup schemes for women entrepreneurs in the country.
- Launch Year: 2016
- Objective: Promote entrepreneurship and create a favorable ecosystem for startups.
- Support Measures: Provides support through funding, tax exemptions, mentorship, and simplification of regulations.
- Ecosystem Building: Aims to build an ecosystem conducive to innovation and entrepreneurship by streamlining processes and ensuring access to funding.
These government initiatives work collectively to encourage women entrepreneurs and startups across India. By providing financial assistance, digital platforms, and support measures, they empower women to pursue their entrepreneurial dreams and contribute to the nation’s economic growth.
Final Thoughts
India has made remarkable progress in promoting women’s employment through comprehensive startup schemes for women entrepreneurs in India. These businesses are not just about financial support but about inclusion and equality in performance. Key initiatives like Stand-Up India, Mahila E-Haat, Pradhan Mantri Mudra Yojana, Start-Up India play a vital role in creating financial support, digital platforms and ecosystems for entrepreneurial women. By supporting women’s enterprises, India aims to achieve economic growth and social empowerment .
