24,000 Women-led MSME Shut Down in Last 5 Years; Loss of Over 1.6 Lakh Jobs

24,000 Women-led MSME Shut Down in Last 5 Years; Loss of Over 1.6 Lakh Jobs
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Friday December 05, 2025
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Over 24,000 Micro, Medium, and Small Enterprises (MSMEs) were shut down between July 2020 and November 2025, Shobha Karandlaje, Minister of State for the Ministry of Micro, Small and Medium Enterprises, revealed during the Parliament Winter Session. This, as per YourStory, led to a loss of 1,61,580 jobs across the country.

Karandlaje presented detailed data regarding MSME trends in India. When asked about the women’s role in the MSME ecosystem, she shared that 2.86 crore women-led MSMEs were registered between July 2020 and November 2025. were registered across India.

The report shared by Karandlaje further revealed that states such as Maharashtra, West Bengal, Tamil Nadu, Karnataka, and Andhra Pradesh account for the highest number of women-led MSMEs. The number for these states stands as follows:

  • Maharashtra: 33.5 lakh women-led MSMEs
  • West Bengal: 28.47 lakh women-led MSMEs
  • Tamil Nadu: 25.5 lakh women-led MSMEs
  • Karnataka: 20.5 lakh women-led MSMEs
  • Andhra Pradesh 20.1 lakh women-led MSMEs

The Indian government’s primary source of information regarding MSMEs comes through the Udyam Registration Portal and Udyam Assist Platform, which was launched in July 2020. While these states are indeed leading in the formation of women-led MSMEs, some of them also have a high number of the same having been shut down.

  • Maharashtra: 6,086 women-owned MSMEs closed
  • Tamil Nadu: 3,916 women-owned MSMEs closed
  • Gujarat: 1,856 women-owned MSMEs closed
  • Karnataka: 1,497 women-owned MSMEs closed

The ministry has admitted that the de-registration of such businesses from the Udyam platform doesn’t necessarily mean closure. Some alternative possibilities include ownership changes, duplicate entries, and the certificate no longer being required.

Karandlaje stated that the government is keen on increasing women’s participation in the MSME sector and has launched various initiatives, including special drives for registering women-owned MSMEs on Udyam Registration and Udyam Assist Portals. The government has rolled out targeted interventions over the last few years.

For example, the Public Procurement Policy requires that 3% of all annual purchases by central public sector enterprises be from women-owned micro and small enterprises. Similarly, women-led units receive up to 90% guarantee coverage, against 75% for others, as well as a 10% concession in guarantee fees under the Credit Guarantee Scheme.

Furthermore, about 39% of the beneficiaries of the Prime Minister’s Employment Generation Programme (PMEGP) are women. Through this, they are provided with a higher subsidy (35%) compared to the non-special category (up 25%). Under the Coir Vikas Yojana, the government has implemented the Skill Upgradation and Mahila Coir Yojana, an exclusive training programme aimed at skill development of women artisans engaged in the Coir sector.

Initiatives like the PM Vishwakarma Scheme and the Yashasvini awareness campaign have also been launched to support women by building capacity, providing visibility, and continuous support.

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