For the first time in seven years, India’s female labour force participation rate (FLFPR) has seen a significant rise, jumping from 23.3% in 2017-18 to 41.7% in 2023-24, as revealed in the Economic Survey 2024-25, tabled by Finance Minister Nirmala Sitharaman. The surge, primarily driven by rural women entering the workforce, is a key factor in the overall improvement of India’s labour market.
More women in the workforce, more states showing growth
In 2017-18, 20 states and Union Territories had FLFPR below 20%. By 2023-24, this number had dropped to just three, reflecting a broad geographic shift in women’s workforce participation. The majority of states—21 in total—now report FLFPR between 30-40%, with seven states and UTs exceeding 40%. Sikkim leads the nation, boasting the highest FLFPR at 56.9%.
The economic report attributes this growth to expanding employment opportunities, government initiatives, and increased access to financial support for women-led enterprises. The rural FLFPR alone jumped from 24.6% in 2017-18 to 47.6% in 2023-24, showing the impact of grassroots economic empowerment programs.
Government Initiatives fueling women entrepreneurship
The Economic Survey underscores how women-led businesses are thriving under government support. As of October 31, 2024, over 73,151 startups with at least one woman director have been recognized under the Startup India Initiative—nearly half of all registered startups in India.
To further boost women entrepreneurs:
These initiatives, combined with financial support, mentorship programs, and skill development schemes, are helping Indian women break barriers in business and employment.