New Delhi: The Reserve Bank of India’s (RBI) Financial Inclusion and Development Department has revealed that as of March 31, 2023, women-owned Micro, Small, and Medium Enterprises (MSMEs) account for 7.09% of the outstanding MSME credit of Scheduled Commercial Banks. This data underscores the need for increased financial support and participation of women in the MSME sector.
According to the data, there are 1,73,831 women-led MSMEs registered on Udyam Registration portal from Odisha in last three years while the all India registration is 46,91,577.
The government has implemented several measures aimed at enhancing women’s access to financial resources and encouraging their entrepreneurial activities. Among these initiatives is the Credit Guarantee Scheme for Micro & Small Enterprises, which offers additional benefits to women entrepreneurs. While the general guarantee cover stands at 75%, this coverage has been increased to 85% for women. Additionally, women entrepreneurs receive a 10% concession on annual guarantee fees.
The Prime Minister’s Employment Generation Programme (PMEGP) also supports women by providing credit-linked subsidies for establishing new micro-enterprises in the non-farm sector. This includes margin money subsidies ranging from 15% to 35% of the project cost for projects up to ₹50 lakh in the manufacturing sector and ₹20 lakh in the service sector. For beneficiaries in special categories, including women, the margin money subsidy is 35% in rural areas and 25% in urban areas.
Recent initiatives to promote MSMEs, including those led by women, include:
- Revised MSME Classification: The criteria for MSME classification have been updated based on investment and turnover to expand the sector’s ambit.
- No Global Tenders: Global tenders are prohibited for procurements up to ₹200 crores.
- Udyam Registration: Introduced for MSMEs to enhance ease of doing business.
- Udyam Assist Platform: Launched to bring informal micro enterprises into the formal sector, allowing them to benefit from Priority Sector Lending.
- Inclusion of Retail and Wholesale Traders: Effective from July 2, 2021, these traders are now classified as MSMEs.
- Extended Non-Tax Benefits: MSMEs receive non-tax benefits for three years if there is an upward change in their status.
- PM Vishwakarma Scheme: With a financial outlay of ₹13,000 crores, this scheme supports traditional artisans and craftspeople, including a significant 75.43% of enrolled women, by enhancing product quality, scale, and market reach.
- Samadhaan Portal: Enables MSMEs to file grievances and monitor outstanding dues from buyers.
- Champions Portal: Launched in June 2020, this online portal addresses e-governance aspects, including grievance redressal and MSME support.
These efforts were detailed by Minister of State for the Ministry of Micro, Small & Medium Enterprises, Sushri Shobha Karandlaje, in a written reply in the Rajya Sabha today. The initiatives reflect the government’s commitment to empowering women entrepreneurs and ensuring their substantial contribution to the MSME sector, fostering inclusive economic growth in India.