Women-led MSME closures hit 24,000, wiping out more than 1.6 lakh jobs

Nearly 24,000 women-led micro, small and medium enterprises have shut down in the past five years, the government told Parliament, underscoring both the scale of women’s participation in India’s MSME sector and the pressures facing smaller businesses. The disclosure came during the Winter Session, with YourStory reporting that the closures resulted in the loss of more than 1.6 lakh jobs.

Minister of State for MSMEs Shobha Karandlaje said more than 2.86 crore women-led MSMEs were registered between July 2020 and November 2025 on the Udyam Registration Portal and the Udyam Assist Platform. These digital systems, introduced in 2020, have become the government’s primary source of verified MSME data.

The minister presented detailed state-wise figures in the Lok Sabha in response to an unstarred question on the status of women entrepreneurs. Maharashtra, Tamil Nadu, Karnataka, Andhra Pradesh, West Bengal and Uttar Pradesh host the highest concentration of women-led MSMEs, with Maharashtra alone accounting for over 33.5 lakh enterprises, followed by West Bengal at 28.47 lakh and Tamil Nadu at 25.5 lakh.

However, several of these states also recorded the largest number of closures. Maharashtra reported 6,086 shutdowns, Tamil Nadu 3,916, Gujarat 1,856 and Karnataka 1,497. The Ministry clarified that de-registrations did not always reflect business failure; enterprises may exit the portal due to ownership changes, consolidation, duplicate entries or reduced need for certification.

Karandlaje said the government had intensified efforts to improve women’s participation in the MSME ecosystem, including special outreach drives to register women-led units on Udyam platforms. She highlighted targeted interventions under credit, procurement and skilling schemes aimed at strengthening women’s economic agency.

Under the Public Procurement Policy, central public sector enterprises are required to source 3% of annual purchases from women-owned micro and small enterprises. Women-led units also receive up to 90% guarantee coverage under the Credit Guarantee Scheme, compared with 75% for others, alongside a 10% concession in guarantee fees.

Women entrepreneurs form 39% of total beneficiaries under the Prime Minister’s Employment Generation Programme and receive dedicated support under the Skill Upgradation and Mahila Coir Yojana. Trade fair participation is fully subsidised for women-owned enterprises, compared with 80% for others.

Newer initiatives, including PM Vishwakarma and the Yashasvini awareness campaign, aim to enhance visibility, capability-building and institutional support for women in traditional and craft-based trades.

The data reveals both the momentum of women’s entrepreneurship and the fragility of micro-enterprise survival, particularly in states with high concentrations of small units. The Ministry’s emphasis on credit access, market linkages and targeted procurement is expected to play a central role in shaping the resilience of women-led MSMEs over the next few years.