Labour Force Participation of Women Climbs to 40% by 2025, Data Shows

According to an official fact sheet released on October 15, women’s participation in India’s labour market has reached a historic high. The labour‑force participation rate (LFPR) for women aged 15 and above is projected to be 40 percent in 2025, up from 23.3 percent in 2017‑18.

The same report notes that 3.69 crore MSMEs carry women’s names, representing about 38 percent of all registered micro, small and medium enterprises. This surge in female‑owned businesses is a direct outcome of policies that improve workplace safety, social security, and access to formal credit.

In the start‑up arena, more than 1.07 lakh recognised companies list at least one woman director or partner, accounting for roughly 48 percent of the total start‑up count.

Employment data estimates that around 20 crore women aged 15 and above were employed in 2025, a clear indicator of broader economic inclusion.

The worker‑population ratio for women rose from 22 percent in 2017‑18 to 38.8 percent in 2025, reflecting deeper penetration of women into the formal economy.

Industry‑specific insights reveal that women will make up about 70 percent of the direct workforce in mobile‑phone manufacturing by July 2026, while the electronics manufacturing sector has sustained a 30 percent female share over the last decade.

Key interventions identified include formal registration of enterprises, financial assistance schemes, and enhanced market access, all aimed at bolstering women‑led firms.

The Swavalamban scheme continues to provide comprehensive support to young women—from business‑idea incubation to establishment, financing, market linkage and legal aid, coupled with up to 21 weeks of mentorship.

Through the Yashaswini campaign, the government seeks to achieve gender parity on the enterprise registration portal by 2029. By July 2026, more than 22 lakh women‑owned MSMEs had been registered, and public procurement from women‑owned micro and small enterprises reached 3.8 percent in FY 2025‑26, exceeding the 3 percent target.