As India enters fiscal year 2025-26, Finance Minister Nirmala Sitharaman has presented one of the most ambitious targets in her Budget address: Integrating 70% of women into the workforce. With a focus on empowering youth, farmers, and women, the Union Budget 2025 reflects the government’s vision for ‘Women-led development’ and a Viksit Bharat (Developed India) by 2047.
“In this Budget, the proposed development measures span ten broad areas focusing on Garib [the poor], Youth, Annadata [farmers], and Nari,” Sitharaman said.
The Union Budget 2025 has the highest-ever allocation for women-centric schemes. The Gender Budget allocation jumped from 6.8% of the total Union Budget in FY 2024-25 to 8.86% this year. The INR 4.49 lakh crore set aside for women and girls marks a 37.25% increase from last year’s INR 3.27 lakh crore. The Gender Budget Statement (GBS) now makes up 9% of overall expenditures, nearly doubling from 5% in FY 2019-20.
Despite the government’s annual budgetary commitments and increasing allocations, is India truly achieving on-the-ground change? Or is it simply pushing the same promises forward year after year?
Financial access for women in the Union Budget 2025
The 2025 Gender Budget introduces a promising initiative: first-time entrepreneurs, including women, can access term loans of up to INR 2 crore over the next five years. This move addresses a long-standing problem of lack of financial access, which keeps many women from starting or expanding businesses.
An IFC report from 2022 revealed that 90% of women entrepreneurs in India had never borrowed from formal financial institutions. The 2020 lockdown exposed this disparity further. While 53% of male-owned businesses struggled financially, the number rose to 72% for women-led enterprises.
Despite an increasing number of financial schemes, women still make up only 14% of entrepreneurs. Out of 58.5 million enterprises, they run just 20% of the country’s micro, small, and medium enterprises (MSMEs).
More money, same old challenges?
The goal of bringing 70% of women into the workforce sounds impressive. However, women’s participation rate in India’s labour force has struggled to cross even 40% in recent years. Data from the Periodic Labour Force Survey (2022-23) indicates that the Female Labour Force Participation Rate (FLFPR) is at just 37%, an increase of only 4.2% points from the last survey (2021-22).
Cultural norms, unpaid care work, and workplace discrimination continue to push women out of formal employment. Without radical changes, such as better childcare, safer workplaces, and equal pay, throwing money at the issue won’t fix it.
The housing budget grows, but do women own their homes?
Until FY 2024-25, the Gender Budget Statement (GBS) had two categories. Part A covered schemes with 100% allocations for women and girls, while Part B included schemes with 30-99% allocations. Last year, the government introduced a third category, Part C, which covers schemes where only 1-29% of funds will go toward women and girls.
The Pradhan Mantri Awaas Yojana–Grameen (PMAY-G) is a government scheme under the Ministry of Rural Development that aims to build pucca (permanent) houses with basic facilities for the rural poor. One of its key promises is to prioritise women by ensuring that houses are registered in their names, giving them property ownership and economic security.
Since PMAY-G falls under Part A of the Gender Budget Statement (GBS), 100% of its allocated funds are officially designated for women. In theory, this suggests that a woman should own every house built under the scheme.
As of February 1, 2025, only 23% of the houses built under PMAY-G have actually been registered in women’s names.
The PMAY-Urban budget increased from INR 15,170 crore in 2024-25 to INR 23,294 crore. At the same time, PMAY-Urban 2.0 rose from INR 1,500 crore to INR 3,500 crore. Under PMAY-Urban, so far, only 73% of houses are registered in women’s names. It means an increased budget won’t necessarily result in a higher percentage of women-owned houses.
Point of view of leaders on the Union Budget 2025
We speak to Sabyasachi (Saby) Mukherjee:
“As I understand it, the government has sought a partnership with the industry to create working women hostels, creches, and skilling programs. This will lead to more women getting financially stronger. Therefore, more women will be able to buy homes, and there will be more utilisation of the provisions made for women.
I think that is one of the best things, and the industry should come all out in support. Until a holistic support system is in place to equal the centuries-old gap, equality will always be a far cry. We must applaud the positives.“
However, a journalist from a leading daily newspaper, under anonymity, told us:
“While the government’s initiatives to boost women’s welfare and entrepreneurship are commendable, several challenges might impact their effectiveness. These include implementing and scaling up programs, ensuring accessibility and reach, maintaining financial sustainability, providing adequate capacity building and training, and establishing robust monitoring and evaluation frameworks. Addressing these challenges will be crucial to realising the full potential of these initiatives.”
The changeincontent perspective: Where the budget falls short
While government schemes exist to support entrepreneurship, some budget cuts raise concerns. The PM Employment Generation Programme (PMEGP), which provides funding for small businesses, has seen a reduction from INR 1,012.50 crore in 2024-25 to INR 862.50 crore in 2025-26.
Women make up 80% of the agricultural workforce but own only 13.9% of the land. That leaves them without legal rights to the fields they cultivate. The Krishonnati Yojana, with an allocation of INR 2,550 crore for 2025-26, is part of the gender budget. However, it lacks specific support for women farmers.
The Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) remains a crucial source of employment for women. While women contribute more than half (57.8%) of the labour under the MGNREGA, only 33.6% of the scheme’s total budget is allocated to programs specifically aimed at women. Even though the scheme’s overall funding has increased to INR 40,000 crore for the 2025-26 fiscal year, the portion of the budget reflecting women’s contributions is still disproportionately low.
It is a concerning mismatch between the work women do and the funding they receive.
Also read: What the union budget 2025 holds for the gig workers in India.
The Union Budget 2025: Final thoughts
Every year, the government rolls out massive allocations and schemes for women, but the same concerns remain. How much of this budget translates into actual impact? While total allocations for women-specific schemes have risen over the years, spending can definitely improve. Funds often remain unutilised, poorly targeted, or tangled in bureaucratic delays.
The Budget’s focus on ‘women-led development’ is a step in the right direction, but the execution matters more than the announcement. The gap between policy and practice has always been India’s Achilles’ heel.
References
Budget 2025-26 and women’s empowerment
Summary of the Union Budget 2025
Ministry of Women and Child Development: Female Labour Force Participation Rate
Disclaimer: The views expressed in this article are based on the writer’s insights, supported by data and resources available both online and offline, as applicable. Changeincontent.com is committed to promoting inclusivity across all forms of content. We broadly define inclusivity as media, policies, law, and history—encompassing all elements that influence the lives of women and gender-queer individuals. Our goal is to promote understanding and advocate for comprehensive inclusivity.
