Closing the Gender Funding Gap is Crucial to India’s Economic Growth: FTCCI

Women entrepreneurs continue to face severe barriers to finance despite constituting nearly half of India’s population, says T. Sujatha

HYDERABAD, June 27: India must bridge the gender funding gap if it hopes to realise its full economic potential, T. Sujatha, Senior Director and Deputy CEO of the Federation of Telangana Chambers of Commerce and Industry (FTCCI), said on Friday, arguing that women entrepreneurs remain significantly underfunded despite their proven contribution to economic and social development.

Delivering the keynote address on “When Women Venture, Economies Grow” at the World MSME Day celebrations organised by the All India Professionals’ Congress (AIPC) Telangana MSME Vertical at the Media Plus Auditorium, Sujatha said women’s participation in business should be viewed not merely as an issue of gender equality but as a critical driver of national development.

Citing demographic estimates, she said India’s female population stands at approximately 715.5 million, representing 48.46 per cent of the country’s population. Yet, when nearly half of the population is unable to participate fully in entrepreneurship and economic activity, the country’s growth inevitably falls short of its true potential.

She said economies become more resilient and inclusive when women establish and scale businesses, creating employment, strengthening household incomes and improving education, healthcare and overall social welfare.

However, access to finance remains the single biggest obstacle for women entrepreneurs.

According to figures cited during her address, women-led startups received only 0.3 per cent of India’s venture capital funding in 2021, while women-owned enterprises continue to face an unmet credit gap exceeding US$11.4 billion. The trend reflects a global imbalance, with women-led startups attracting only 2.5 to 3 per cent of venture capital funding worldwide.

Sujatha attributed the disparity to several structural barriers, including the lack of property ownership needed to secure collateral, limited access to professional networks and persistent social attitudes that discourage women from pursuing entrepreneurship. Although governments at both the Centre and State levels have introduced schemes to encourage women entrepreneurs, she said the existing support remains insufficient to bridge the financing gap.

She called for equitable access to startup capital, institutional credit and expansion finance, arguing that closing the gender funding gap would unlock one of India’s largest untapped economic resources.

Her remarks came during the World MSME Day conference, which brought together entrepreneurs, policymakers, financial institutions and industry leaders to deliberate on strengthening the MSME ecosystem and promoting inclusive economic growth.

The discussion reinforced a growing consensus that India’s journey towards becoming a developed economy will depend not only on expanding MSMEs but also on ensuring that women entrepreneurs receive equal opportunities to build, finance and grow successful enterprises.