NEW DELHI — India has the potential to create more than 30 million new women-owned enterprises, according to a report.
The report -- on democratisation of entrepreneurship in India -- by consulting firm KPMG stated that this can translate to 150 to 170 million more jobs in the country.
Investing in women-led ventures can have a multiplier effect, as they are more likely to reinvest in their communities, the report said.
Further, boosting venture capital (VC) funding in women-led startups in India can enhance gender equity. It will also enable women founders to scale their businesses, create jobs, and contribute to the economy on a larger scale.
“More than 20 per cent of India’s MSME startups were by women-led ventures and 45 per cent of these came from tier II and III cities,” said Akhilesh Tuteja, Client’s and Market Partner, KPMG, at the TiE Global Summit 2024 in Bengaluru.
Meanwhile, as per the Ministry of Commerce and Industry, nearly half of the 1,52,139 startups supported by the government now has at least one woman Director (nearly 73,151 startups). This shows the importance of women in driving innovation and economic growth in the country.
It said the government has also implemented several flagship schemes to promote women-led startups. These include about Rs 3,107 crore invested in 149 women-led startups through Alternative Investment Funds (AIFs).
The Startup India Seed Fund Scheme (SISFS) has since its inception in April 2021, approved Rs 227.12 crore in funding for 1,278 women-led startups.
The Credit Guarantee Scheme for Startups (CGSS), operational since April 2023, has guaranteed Rs 24.6 crore in loans for women-led ventures, said the ministry.
Notably, the Startup India Initiative, launched in 2016, has also been a game-changer in fostering entrepreneurship in the country.
The startups led by women are thriving across more than 600 districts in India's tech ecosystem. More than half of the startups in these districts are being led by women.