Empowering Women in Green Businesses: A Pathway to India’s Sustainable Future

As India charts its path toward a $30 trillion economy and carbon neutrality by 2070, the intersection of gender empowerment and climate action is emerging as a game-changer. According to the Council on Energy, Environment and Water (CEEW), green sectors in states like Odisha alone have a market potential of $23 billion. However, in 2024, only 18% of Indian start-ups are led by women. As climate change accelerates and green innovation becomes indispensable, empowering women in green enterprises is not just about gender parity — it’s central to achieving India’s vision of a sustainable, inclusive, and developed economy by 2047.

What are Green Businesses and Their Role in India’s Growth?

Green businesses are enterprises that create products, services, and technologies that reduce environmental harm while ensuring economic viability. They form a crucial pillar of the transition to a low-carbon, circular, and inclusive economy. As per the Economic Survey 2024-25, India’s green sector could generate over 3 million jobs by 2030, provided supportive infrastructure, finance, and gender-inclusive policies are in place. These enterprises contribute to:

• Reducing greenhouse gas emissions like India’s NDCs under Paris Agreement.
• Achieving SDG 7 (Affordable and Clean Energy), SDG 9 (Industry, Innovation, Infrastructure), and SDG 12 (Responsible Consumption and Production).
• Fulfilling India’s Panchamrit commitments and Net Zero by 2070 roadmap.

Types of Green Businesses in India:

1. Renewable Energy: Solar, wind, and bioenergy firms like SELCO India.
2. Circular Economy Ventures: Waste-to-wealth businesses like Cancrie, which converts industrial waste to nanomaterials.
3. Eco-friendly Manufacturing: Energy-efficient construction (e.g., GRIHA-compliant buildings) and others like bamboo engineering and biodegradable packaging firms.
4. E-waste Management: Enterprises like Attero Recycling.
5. Sustainable Agriculture: Organic input producers and agri-tech players promoting sustainable irrigation or vertical farming.
6. Sustainable Mobility: EV manufacturing, e-mobility platforms.

Government Schemes such as Startup India, TIDE 2.0, Stand Up India, PM-KUSUM, Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME), PLI for Battery Storage, and the National Green Hydrogen Mission are key enablers of such businesses.

Why Women are Needed in the Green Business?

According to India Energy Outlook 2021 by IEA, clean energy investment in India must grow from $70 billion to over $160 billion annually to meet 2030 goals this creates a space ripe for green entrepreneurs. These benefits can be extended to women also.  Green businesses not only offer environmental returns but also social and economic dividends, especially when led by women, who are statistically more likely to reinvest profits into community development.

What is the Significance Empowering Women in Green Business is Crucial for India’s Sustainable Goals by 2047?

1. Inclusive Economic Growth and GDP Boost: According to McKinsey empowering women in green sectors can unlock $770 billion in GDP by 2025. Women-led MSMEs tend to hire 10–30% more women, creating multiplier effects along with equal labour force participation could boost India’s GDP by 18–27%.
2. Climate Resilience and Community Adaptation: UNDP and UN Women report that women are key to grassroots climate adaptation. It has been seen that women led enterprises reinvest earnings into health, water, and education infrastructure. Example: SEWA’s solar sisters electrify villages.
3. Better Financial Performance and Creditworthiness: Women-led enterprises show higher repayment rates — 97% as per World Bank and NABARD. Unlocking green credit for women can transform financing landscapes.
4. Grassroots Innovation and Green Solutions: Women bring local knowledge into sustainable product innovation like solar cookstoves, biodegradable pads, and engineered bamboo homes. Initiatives like Cancrie (by Mahi Singh) innovate with nano-waste materials for clean tech.
5. Job Creation in Emerging Green Sectors: ILO projects 3 million green jobs in India by 2030. Women in EV maintenance, waste management, and renewables can lead this transition. Frontier Markets alone has generated 10,000+ green jobs for rural women.
6. Improved ESG and Corporate Governance: As per Boston Consulting Group companies with greater gender diversity outperform peers on ESG scores. IMF also points that women-led governance scores higher business ethics and sustainability. This attracts global green finance and improves investor confidence.
7. Democratizing Green Technology Access: Women often lead cooperative, locally-rooted ventures like Karnataka SHGs distribute solar tech door-to-door, improving energy equity. Such innovations also reduce energy poverty and emissions.
8. STEM Education and Role Modeling: Programs like Tata Steel’s ‘Women of Mettle’ and entrepreneurs like Rashi Gupta of Vision Mechatronics inspire girls to join green engineering. Education in STEM enhances women’s presence in high-tech climate roles.

What are the Challenges and Risks Facing Women in Green Business?

1. Limited Access to Institutional Finance: According to MoSPI only 1.1% of women entrepreneurs accessed institutional finance, while 79% relied on self-funding. Green sectors require high initial capital this worsen women exclusion. Perceived gender and sectoral risks also reduce their credit flow.
2. Gender Bias and Investor Stereotyping: Women entrepreneurs face deep-seated scepticism — “Who is the man behind the scene?” remains a frequent query. As per PitchBook Global VC funding to all-female teams was just 2.3% in 2023. Also the risk perception skews against both gender and green-tech.
3. Underrepresentation in STEM and Tech Fields: According to AICTE, 2024 only 19.2% of engineering graduates in India are women, restricting participation in EVs, hydrogen, and climate tech. Tech-heavy green industries demand core STEM capabilities this exacerbates sectoral segregation which perpetuates a skills and leadership gap.
4. Limited Role Models and Mentorship Access: A lack of visible women in climate-tech stifles aspiration and networking. Platforms like WEP (Women Entrepreneurship Platform) remain underutilized at the grassroots. Vanita Prasad of Revy also highlighted the vacuum in relatable guidance.
5. Policy Complexity and Scheme Inaccessibility: Despite numerous schemes, women entrepreneurs report difficulty in accessing support due to complex documentation and lack of awareness. Cancrie cites opaque loan disbursal procedures and digital illiteracy deepens exclusion.
6. Cultural Norms and Mobility Barriers: Care work, safety issues, and gender norms restrict women’s mobility, especially in semi-urban/rural areas. These limitations reduce exposure to fieldwork, tech labs, and green start-up ecosystems. Social expectations also stunt scale and outreach.
7. Digital Divide and Market Access Gaps: According to NFHS-5 only 30% of Indian women use the internet regularly, restricting access to digital marketplaces and fintech. Women-led SHGs face exclusion from green e-commerce/export channels. This undermines scale and competitiveness.
   8. Low Representation in Decision-Making Ecosystems: As per SEBI, 2024 only 17.6% of board members in Indian listed companies are women. Green economic policies often lack gender-responsive budgeting and design. Women’s exclusion reduces relevance and impact of sustainability strategies.

What Can Be the Way Forward?

1. Gender-Responsive Finance and ESG Transparency: Mandate annual gender-disaggregated credit reporting by banks and VCs to track equity in lending. Expand green credit lines under SIDBI, NABARD and promote Gender Lens Investing via ESG frameworks. Example: SEBI: ESG must include gender metrics.
2. One-Stop Digital Access for Green Schemes: Develop an AI-powered Green Women Entrepreneurs Portal with regional language support, single-window access to credit, training, and mentorship. Inspired by Startup India Hub 2.0, it should integrate central and state schemes for clarity and outreach. Example: AI dashboard for women-led green startups
3. Women-Led Innovation and Challenge Funds: Launch a ₹500 crore Green Innovation Challenge to fund climate-tech solutions by women. Use blended finance and carbon credits to support scalable ventures in areas like bio-remediation, EVs, and sustainable design. Example: ₹500 crore fund for women innovators.
4. STEM Scholarships and Women-Centric Curriculum Reform: Offer green-tech fellowships under schemes like ‘Women of Mettle’ and include climate-smart modules in engineering and ITIs. As per AICTE, 2024 targeted support can bridge the 19.2% gender gap in engineering graduates.
   Example: Tata Steel’s Women of Mettle program.
5. Decentralized Manufacturing and SHG Integration: Promote rural micro-units in bamboo, composting, solar devices by integrating SHGs with government procurement and GeM. States like Tripura offer scalable bamboo cluster models linked to eco-tourism and green supply chains. Example: Tripura bamboo cluster empowers SHGs.
6. Green Incubators and Mentorship Cells: Set up State Renewable Energy Development Agency (SREDA)-based incubators with dedicated women mentors. Expand NITI Aayog’s WEP and BRICS Bootcamps for localised access in Tier-2 and Tier-3 towns. Example: WEP expands to Tier-2 green hubs
7. CSR-Funded Bootcamps and Skilling Programs: Mandate 10% of CSR funds under Schedule VII for green skills training, targeting women-led MSMEs. Replicate models like Goldman Sachs’ 10,000 Women with a climate innovation focus. Example: CSR funds support 10,000 green women
8. E-Commerce and Procurement Quotas: Reserve 10% of green public procurement for women-run MSMEs and add dedicated green categories on GeM, Flipkart, and Amazon. Helps address the market access gap faced by rural SHGs and eco-entrepreneurs. Example: GeM adds women’s green product section

Conclusion:
To achieve a sustainable India by 2047, we must foster not just green innovation but gender equity. Empowering women in green business is not optional—it is foundational to India’s future.