Year: 2026 | Month: June | Volume 71 | Issue 2

Bridging the Gender Gap in Indian MSMEs: Skill Development, Barriers, and Policy Pathways

Rosy Sulochana
DOI:10.46852/0424-2513.2.2026.8

Abstract:

The Micro, Small, and Medium Enterprises (MSMEs) sector forms the backbone of India’s economy, contributing nearly 30% of GDP, 45% of exports, and employing over 111 million people. Yet women remain underrepresented, with only 20.37% of MSMEs under female ownership, and their share in small and medium segments negligible. This paper examines the structural barriers that limit women’s participation in MSMEs, focusing on skill development deficits, financial exclusion, and socio-cultural constraints. Using official data from the MSME Annual Report (2023–24) and the Skill Development and Entrepreneurship Report (2023–24), the study analyzes the impact of government initiatives such as PMKVY, SANKALP, and MUDRA, while highlighting gaps in gender budgeting. The analysis is grounded in the Capability Approach and the Entrepreneurial Ecosystem Framework, demonstrating how systemic disadvantages across skills, finance, and markets reinforce gender inequality. Empirical evidence shows that while interventions have created opportunities such as the Drone Didi program in agri-tech and localized artisan training schemes, fragmented implementation and underfunding continue to constrain outcomes. The paper concludes that bridging the gender gap requires an integrated strategy that links gender-responsive skilling with financial access, mentorship, regulatory support, and market linkages. Expanding women’s participation in MSMEs is critical not only for gender equity but also for achieving India’s inclusive growth and sustainable development goals.

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