Access to finance, investments in health, saving schemes and more–what women entrepreneurs expect from Budget 2024
HerStory spoke to women entrepreneurs from different sectors to understand their expectations from the Union Budget 2024.
According to Women in India’s Startup Ecosystem Report (WISER), women accounted for 35% of the startup workforce in 2022. With careful introspection that enables timely and targeted action, the startup community can raise this number to 50% by 2030.
In 2017, India had around 6,000 startups, with a mere 10% being spearheaded by female founders. This significant surge is an encouraging development.
Among the specific measures for women in the Union Budget 2023, Union Finance Minister Nirmala Sitharaman had announced that large producer enterprises or collectives would be formed to empower the self-help groups (SHGs) under the Deendayal Antyodaya Yojana National Rural Livelihood Mission. This was in an effort to boost women’s micro-entrepreneurship.
A week before the presentation of the Union Budget 2024, women from the Indian startup ecosystem spoke to HerStory about their expectations and what they think is the way forward.
Increase gender budget outlay
The capital requirement of women entrepreneurs is still an under addressed area in India, which is a key hurdle for women entrepreneurs at every level. Despite proven business acumen, funding to women entrepreneurs is often mired by systemic and perception challenges. In 2023, reports showed that less than 1% of investment went to women-led businesses.
I am expecting the upcoming Budget to do more to level the playing field. In addition to continuing the many good initiatives and government schemes that exist for girls and women, the 2024 Budget should look at incentivising domestic as well as foreign investors for gender-lens investing in India. The impact of which can mobilise millions of women entrepreneurs en masse and catapult India towards becoming a $30 trillion economy even faster.
In the previous Budget, the government had allocated upwards of Rs 2 lakh crore towards gender budgeting. Upping this outlay is critical, as it will facilitate access to basic needs for women, especially education, which is pivotal to breaking the vicious cycle of poverty. The government also recently announced its plans to revamp the gender budgeting mechanism and shift to an ex-ante model, linking spending with outcomes. The upcoming Budget should look at institutionalising this as it will help in better identification, channelisation and course correction of gender-focused spending and policies.”
Hardika Shah, Founder & CEO, Kinara Capital
Empower women with funding, resources, and opportunities
I am optimistic about Budget 2024. The GYAN (Gareeb, Yuva, Annadata & Nari) formula signals commitment to women, and I expect a significant rise in allocation for health, safety, education, and a dedicated fund for women entrepreneurs. Women-owned businesses in India have increased by over 20% in the last five years and are predicted to increase by up to 90% in the next five years. We’ve seen first-hand the enterprising spirit of women in Tier 3-6 cities through EarnKaro. The Budget 2024 should empower them with increased funding, resources, and opportunities and celebrate their potential.
Swati Bhargava, Co-founder, &
Commitment to women’s health initiatives
As the founder of a women's healthcare brand, I foresee Budget 2024 ushering in transformative measures to elevate women’s well-being. Heightened financial commitment to women's health initiatives, strategically designed tax incentives for women-led healthcare startups, and the seamless integration of technology into healthcare delivery stand as indispensable focal points. I advocate for substantial budgetary allocations toward skill development, empowering women to excel in both healthcare and entrepreneurship domains.
The imminent budgetary deliberations present a singular opportunity to accelerate impactful change, steering our nation towards a future where women thrive with vitality and well-being at the forefront.
Rachana Gupta, Co-founder,
Anticipate additional savings schemes for women
“As we look towards the upcoming Union Budget, our expectations centre on provisions for schemes benefiting women in three key areas: financial inclusion, the promotion of entrepreneurship, and skill building.
Building upon a provision from the previous year's Budget—the Mahila Samman Savings Certificate, offering a fixed 7.5% interest rate for deposits over two years—we anticipate additional savings schemes, specifically designed for women in rural communities. Moreover, we expect the introduction of small-ticket interest-free loans, driving the expansion of women-led enterprises to cater to larger consumer markets and stimulate economic growth.
Addressing the need for bridging skill gaps, we foresee the creation of skills development programmes tailored for women. These programmes would equip women with the competencies needed to leverage emerging technologies, enabling them to participate in the formal sector and seize opportunities in the AI-driven future.”
Upasana Taku, Chairperson, Co-founder & COO,
Measures to boost women-led innovation
As a social entrepreneur, I eagerly anticipate Budget 2024 to recognise our pivotal role in fostering positive change. A dedicated fund for impact investors, managed by experienced entities like SIDBI and NABARD, would be instrumental in providing vital financial support for our sustained growth and meaningful societal contribution.
This Budget's support should extend to micro-entrepreneurs, offering subsidies to empower them, fostering local production, and championing 'Make in India' efforts. Also, schemes like FPO, co-operative reforms are really helping farmers, and a budget allocation for the same would be recommended. Additionally, we expect measures to boost women-led innovation, including special funding, skill development, technology incentives, and targeted initiatives. Improved infrastructure, digital connectivity, networking platforms, and family-friendly tax benefits are essential elements for empowering women entrepreneurs for positive economic transformation.
Prachi Kaushik, Founder & Director,
We need action, not just words
As women entrepreneurs, we’re looking for this Budget to be a real game changer, addressing critical needs that can propel our businesses forward.
Firstly, we seek improved access to capital. We are looking for initiatives that simplify loan procedures, encourage venture capital investments in women-led businesses, and foster collaborations with financial institutions to bridge the funding gap. We are also looking for concrete financial incentives, be it in the form of grants, subsidies, or tax breaks.
Secondly, women need budget allocations targeted specifically for skill development and training programmes. Women entrepreneurs need initiatives that enhance their business acumen, technical skills, and overall entrepreneurial capabilities, empowering them to navigate challenges.
Thirdly, we recognise the importance of staying competitive in this digital era and seeking budgetary provisions for technology adoption, innovation, and digitisation.
Fourth—creating avenues for market access and networking that provide exposure to global markets and encourage networking with industry leaders.
Let's get real for a second. Welfare programmes for women mean nothing if those in power stay silent on violence and harassment.
We need action, not just words. As we approach a new Budget, it’s time to take a hard look at our past and pave the way for a more equitable future. We must proactively support women in the workforce, not just with words on a paper, but with tangible measures.
Somdutta Singh, Serial Entrepreneur, Founder and CEO Assiduus Global, LP Angel Investor, Advisor Govt of India (Core Committee Member of WEP- Niti Aayog)
Investments in health infrastructure
We anticipate the upcoming Union Budget to address gender-specific challenges, including improved access to finance, skill development and market exposure. There should be provision for targeted incentives and support systems from the government that encourage more women to venture into the business landscape. Especially in the healthcare sector, where ICPA operates, we look forward to the finance minister announcing investments in health infrastructure, with a focus on initiatives that benefit women’s health.
Allocating funds for research and development in women-centric health solutions can have a transformative impact. It is also crucial to emphasise initiatives that promote the inclusion of more women in the healthcare workforce, ensuring diversity and leveraging the unique perspectives women bring to the field. Acknowledging the unique challenges women often face in balancing professional and personal spheres, the Government could also announce special initiatives to promote work-life balance.”
Abha Damani, Director, ICPA Health Products Ltd (ICPA)
Viable women-centric industrial policy
For the upcoming Budget, women entrepreneurs in various sectors of the country have great expectations from the government regarding credit support for women-led businesses. It is essential to relook at investments for health leadership to be inclusive and diverse. The female workforce, especially female entrepreneurs, expect the Centre to give extra incentives and Production Linked Incentives (PLI) schemes to support them.
The women entrepreneurs also expect the government to provide interest-free loans, and offer funds dedicated to women entrepreneurs, along with provide low-cost funding to early-age startups founded by women to position India as an innovation-based economy. A viable women-centric industrial policy is the need of the hour to get prominence for women entrepreneurship development. The startup sector would expect the budget for 2024 to continue with stability in the policies.
Dr Garima Sawhney, Co-founder,
More inclusive and accessible financial ecosystem
In India, there are currently only three diversity-focused funds—AWE, She Capital, and Arise—each facing the challenge of relatively small fund sizes. To effectively advance the agenda of women entrepreneurship, the upcoming Budget must prioritise and allocate substantial resources to support their access to capital. Specifically, there is a pressing need for increased equity-based funding. The government should focus on allocating funds for risk capital rather than relying solely on loan-based strategies. Many female entrepreneurs often discover that they are ineligible for existing schemes, emphasising the necessity for a more inclusive and accessible financial ecosystem. Therefore, the ask in the upcoming Budget is pretty straightforward: it should allocate more capital to diversity-focused funds, acknowledging the pivotal role women entrepreneurs play in fostering a more equitable business landscape in India.”
Aditi Balbir, Co-founder, EcoRatings
Easier access to institutional funding
Women constitute almost half of the country’s population, yet there is very little attention given to women-specific needs so far. While there are a few social welfare schemes such as micro-financing for rural women entrepreneurs and healthcare support for maternity related needs etc., there is no holistic approach to address the challenges. The need of the hour is to provide more funds for R&D related to women’s health issues, and to the healthcare providers for building infrastructure that can cater specifically to those problems.
Women entrepreneurship should be encouraged at the grassroots levels through microfinancing, and women-led startups should get easier access to institutional funding. Tax benefits should also be offered to female business leaders to encourage more women into pursuing their entrepreneurial ambitions. Further, the Government must provide higher education financing for girls, incubators for female-led startups, and also large-scale tech upskilling programmes to empower Indian women to compete strongly in the digitally- driven world.
Meena Ganesh, Chairperson & Co-founder,
Edited by Megha Reddy