How PM Vishwakarma and MSME Policies Are Transforming Women Businesses

India’s micro, small and medium enterprise (MSME) ecosystem is witnessing a significant shift as women increasingly step into entrepreneurship and traditional craft-based businesses. The latest government data shows that more than 3.07 crore women-led enterprises have now been registered on the country’s MSME platforms, highlighting the rising participation of women in India’s economic landscape.

Government initiatives such as the PM Vishwakarma Scheme, Credit Guarantee Scheme for Micro and Small Enterprises (CGTMSE), and Prime Minister’s Employment Generation Programme (PMEGP) are playing a critical role in supporting women artisans, craftspeople, and entrepreneurs. These programmes provide access to financial assistance, skill development, digital literacy, and market linkages.

The update was recently shared in the Rajya Sabha by Minister of State for MSME Shobha Karandlaje, who outlined how various policies are strengthening women’s participation in manufacturing, services, and traditional industries. As India continues to focus on inclusive growth and self-reliance, the expansion of women-led enterprises under these schemes is emerging as a key pillar of the country’s economic strategy.

Government Data Shows Surge in Women-Led MSMEs

Women Entrepreneurs Cross 3 Crore Mark in MSME Registrations

The Indian government has reported a major milestone in women entrepreneurship. According to the latest figures available on the Udyam Registration Portal and the Udyam Assist Platform, the number of women-owned enterprises registered under MSME categories has reached 3,07,42,621 as of February 28, 2026.

This data highlights the growing participation of women in India’s business ecosystem, particularly in micro and small enterprises that form the backbone of the country’s manufacturing and services sectors.

Officials say government programmes designed to improve access to finance, training, and markets have helped thousands of women transition from informal livelihoods to structured businesses.

The update was provided by Minister of State for MSME Shobha Karandlaje in a written response in the Rajya Sabha, where she outlined several schemes aimed at empowering women entrepreneurs.

Timeline and Policy Background

India’s push to strengthen women entrepreneurship has evolved steadily over the past decade.

The MSME sector contributes nearly 30 percent to India’s GDP and around 45 percent of exports, making it one of the most critical pillars of the national economy.

Recognizing the role of women in this sector, the government introduced a range of programmes focused on financial inclusion, skill development, and market support.

The PM Vishwakarma Scheme, launched to support traditional artisans and craftspeople, is among the most prominent initiatives designed to revive traditional industries while creating sustainable livelihoods.

Similarly, credit support schemes and cluster development programmes have been introduced to strengthen grassroots entrepreneurship across rural and urban regions.

According to data published by the Ministry of MSME, the sector currently supports more than 11 crore jobs across India, many of which are generated through micro enterprises and traditional industries.

PM Vishwakarma Scheme Strengthens Traditional Artisan Economy

Skill Development, Digital Training and Market Access

The PM Vishwakarma Scheme focuses on providing capacity-building support to traditional artisans and craftspeople across India.

Under the programme, beneficiaries receive basic skill training lasting between five and seven days, followed by advanced training programmes of 15 days or more depending on the trade and skill requirements.

These training sessions go beyond technical skills and include:

• Entrepreneurial orientation

• Financial literacy

• Digital literacy

• Training on modern tools and equipment

Officials say this holistic approach helps artisans adapt to modern market demands while preserving traditional craftsmanship.

Another important component of the scheme is marketing support. Artisans are encouraged to sell their products on e-commerce platforms while receiving assistance with branding, packaging, and promotion.

This integration with digital marketplaces has helped many rural artisans reach wider national and international audiences.

Cluster-Based Support Through Traditional Industry Programs

Alongside PM Vishwakarma, the government also operates the Scheme of Fund for Regeneration of Traditional Industries (SFURTI).

The programme focuses on developing clusters of traditional industries such as handicrafts, handlooms, and rural manufacturing.

Through cluster-based interventions, artisans receive support in:

• Skill training and capacity building

• Digital marketing and e-commerce onboarding

• Machine handling and maintenance training

• Product design and development

These initiatives also include exposure visits, workshops, and technology upgradation programmes aimed at increasing productivity and competitiveness.

According to experts, cluster-based development has proven effective in improving supply chains and enabling artisans to scale their businesses.

Financial Support Schemes Driving Women Entrepreneurship

Credit Guarantee and Subsidy Programs Expand Access to Finance

Access to finance remains one of the biggest barriers for small businesses, particularly those led by women entrepreneurs.

To address this challenge, the government operates the Credit Guarantee Scheme for Micro and Small Enterprises (CGTMSE).

The scheme provides collateral-free loans through member lending institutions, reducing the risk for banks while expanding credit access for small businesses.

For women-led enterprises, the government offers additional incentives.

Women entrepreneurs can receive up to 90 percent credit guarantee coverage, compared to 75 percent coverage for general borrowers. The scheme also provides a 10 percent relaxation in guarantee fees, making loans more affordable.

Experts say such measures significantly improve financial inclusion for women entrepreneurs, especially those operating in rural or semi-urban regions.

According to the Reserve Bank of India, access to credit has been one of the most significant factors driving growth in the MSME sector over the past decade.

Employment Generation Schemes Supporting Women

Another key programme supporting women entrepreneurs is the Prime Minister’s Employment Generation Programme (PMEGP).

The scheme helps individuals establish micro enterprises in the non-farm sector by providing credit-linked subsidies.

Women beneficiaries receive higher subsidy rates of up to 35 percent, compared with 25 percent for other categories.

Data from the government indicates that around 40 percent of PMEGP beneficiaries are women, demonstrating the scheme’s strong impact on female entrepreneurship.

Policy Initiatives Encouraging Women in Manufacturing and Services

Procurement Policies and Skill Programs Boost Participation

The government has also introduced policy measures to increase women’s participation in manufacturing and service-based micro enterprises.

One such policy requires Central Public Sector Enterprises (CPSEs) and government departments to procure at least 3 percent of their annual purchases from women entrepreneurs.

This procurement mandate ensures that women-owned businesses gain access to government supply chains, creating stable demand for their products and services.

Additional programmes include the Skill Upgradation and Mahila Coir Yojana, which focuses on developing women artisans in the coir industry through specialized training and skill enhancement.

Women entrepreneurs also receive higher support when participating in trade fairs and exhibitions under the Procurement and Marketing Support Scheme, with 100 percent subsidy on participation costs, compared to 80 percent for other entrepreneurs.

Yashasvini Campaign Promotes Awareness

To further expand outreach, the government launched the Yashasvini campaign, aimed at raising awareness among existing and aspiring women entrepreneurs about MSME schemes.

The campaign focuses on providing continuous support through training, mentorship, and information about available government initiatives.

Industry experts believe awareness campaigns are crucial because many entrepreneurs, especially in rural areas, remain unaware of the support available to them.

Impact on India’s Economy and Future Outlook

Women Entrepreneurship Emerging as a Key Growth Engine

The rapid rise in women-led MSMEs signals a broader transformation in India’s economic landscape.

Experts say empowering women entrepreneurs not only promotes gender equality but also contributes significantly to economic growth, job creation, and innovation.

According to research by the World Bank, increasing women’s participation in entrepreneurship can substantially boost productivity and economic development in emerging economies.

India’s focus on digital literacy, financial inclusion, and market access for women entrepreneurs is expected to further accelerate this growth in the coming years.

Future Outlook for MSME and Women Entrepreneurs

Looking ahead, policymakers are expected to continue strengthening MSME support systems through improved financing models, digital platforms, and international market linkages.

Experts believe that integrating traditional artisans into modern supply chains and digital marketplaces will play a crucial role in sustaining growth.

With government-backed programmes such as PM Vishwakarma, CGTMSE, PMEGP, and SFURTI, India is gradually building a more inclusive entrepreneurial ecosystem where women artisans and business owners can thrive.