Budget Analysis (2020-2026): Women Entrepreneurs, Empowerment, and Startups

In Budget 2020-21 despite the growing number of women-led startups, there was a lack of
direct financial and policy support the startup ecosystem saw no dedicated funds for women
entrepreneurs, and the focus remained on welfare schemes like Poshan Abhiyan and Beti
Bachao Beti Padhao digital governance was introduced for tracking nutrition through
Anganwadi workers.

The 2021-22 Budget focused on pandemic recovery and women’s workforce inclusion,
introducing social security measures for gig and platform workers while allocating ₹2.23 lakh
crore to health and ₹35,000 crore for COVID-19 vaccination there was still no direct financial
aid for women-led startups.

In Budget 2022-23, as India saw 46 unicorns emerge in 2021 of which were women-led the
government introduced measures to support innovation in women’s colleges. Relief under
Atmanirbhar Bharat provided some support to MSMEs, but the reach for women-led MSMEs
remained limited. While the government proposed academic incubation for women, financial
incentives for female entrepreneurs were still lacking

Budget 2023-24 marked a shift towards
economic inclusion and empowerment with 81 lakh rural women mobilized into Self-Help
Groups (SHGs). Startup incentives included a 100% tax deduction extension to March 31,
2024, and an increase in the loss carry forward period to 10 years capital constraints remained
a significant challenge for women-led MSMEs
The 2024-25 Budget strongly pushed for women’s entrepreneurship by introducing 50-year
interest-free loans for startups and increasing funding under PM Mudra Yojana which
sanctioned ₹22.5 lakh crore benefiting 30 crore women entrepreneurs’ skilling initiatives under
the Skill India Mission trained 1.4 crore youth.

The 2025-26 Budget unveiled major financial initiatives to support startups, MSMEs, and
women entrepreneurs a fresh ₹10,000 crore Fund of Funds (FoF) was launched for startups,
building on the existing corpus of ₹91,000 crore via Alternative Investment Funds. To
encourage deep tech investment the government introduced a Deep Tech Fund of Funds to
address funding gaps due to the long gestation periods of deep-tech startups the incorporation
period for startups was extended to 10 years, and a proposal was made to further extend the
startup incorporation period by 5 years for added benefits.
A significant highlight of the 2025-26 budget is the First-Time Women Entrepreneur Scheme
which aims to provide five lakh first-time women entrepreneurs with term loans of up to ₹2
crore over five years particularly benefiting SC/ST entrepreneurs by leveraging the Stand-Up
India model. To support long-term growth, the government extended Section 80-IAC tax
benefits for startups for another five years until April 1, 2030. Access to credit was improved
through government-backed loans of ₹10-20 crore with a reduced guarantee fee of just 1%,
targeting 27 focus sectors aligned with the Atmanirbhar Bharat vision.
Marking two decades of gender budgeting the government has set an ambitious target of
integrating 70% of women into the workforce under the Viksit Bharat 2047 vision while the
Female Labor Force Participation Rate (FLFPR) increased to 41.7% in 2023-24 concerns arose
over reduced funding for the PM Employment Generation Programme (PMEGP) from
₹1,012.50 crore in 2024-25 to ₹862.50 crore in 2025-26. Rural employment also saw a boost
with MGNREGS allocation increasing to ₹40,000 crore, though only 33.6% was included in
the gender budget. Despite 80% of women being involved in agriculture, only 13.9% of
landowners are women, and agricultural schemes like Krishonnati Yojana (₹2,550 crore)
continue to lack dedicated provisions for women farmers.

The chart showcases the
Indian government's evolving support for women entrepreneurs and startups from
2020 to 2025 highlighting key policy interventions a significant milestone is
the introduction of a fresh ₹10,000 crore Fund of Funds in 2025 aimed at
fostering startup growth, particularly in deep-tech sectors the government has
launched a scheme providing term loans of up to ₹2 crore for first-time women
and SC/ST entrepreneurs, reflecting an inclusive approach. The rising
allocation in the gender budget including increased funding for MGNREGS signals
a stronger commitment to women-led development. While some schemes, like PMEGP
have seen budget cuts, the overall trend indicates an enhanced policy focus on
boosting women’s participation in entrepreneurship and the workforce