Union Budget 2025-26 supports women’s economic growth

Source: The post Union Budget 2025-26 supports women’s economic growth has been created, based on the article “Budgeting for a gender-inclusive ‘Viksit Bharat’” published in “The Hindu” on 13th February 2025

UPSC Syllabus Topic: GS Paper3- Economy-government budgeting

Context: The article discusses the Union Budget 2025-26 and its focus on women’s development. It highlights increased gender budget allocation, support for women’s employment, skilling, and entrepreneurship. It also emphasizes formalizing gig workers, AI education, and financial inclusion for women entrepreneurs and farmers.

For detailed information on Union Budget 2025-2026 Highlights read this article here

How Does the Budget 2025-26 Support Women’s Development?

1. The Union Budget 2025-26 focuses on inclusive growth, giving special attention to women. The government aims for 70% women’s participation in economic activities by 2047.
2. The budget includes gender-responsive policies to increase women’s employment, entrepreneurship, and financial inclusion.
3. The gender budget has increased to ₹4.49 lakh crore, which is 8.8% of the total budget, up from 6.8% last year.
4. This is the highest allocation in two decades. 49 Union Ministries and departments have gender-focused policies.
5. 12 new ministries, including Railways, Ports, Shipping and Waterways, Land Resources, Pharmaceuticals, and Food Processing Industries, have integrated gender-responsive policies.

What Are the Key Initiatives for Women?

1. Employment Initiatives for Women:

• Female Labour Force Participation Rate (FLFPR) increased from 33% in 2021-22 to 42% in 2023-24.
• 52% of funds from employment schemes are directed toward women.
• Major schemes include: Skill India Programme; Entrepreneurship and Skill Development Programme (ESDP); National Skill Training Institutes; Deendayal Antyodaya Yojana-National Rural Livelihoods Mission (DAY-NRLM); MGNREGS and PM Employment Generation Programme; PM Vishwakarma and Krishonnati Yojana

2. Initiatives to Boost Women’s Workforce Participation:

• New schemes to promote women’s participation: Prime Minister Dhan-Dhaanya Krishi Yojana ; First-time Entrepreneurs’ Scheme; Sustainable Livelihood for Urban Workers Initiative; Centres of Excellence for Make in India

3. Support for Women in the Gig Economy

• 90% of working women are in the informal sector.
• Government introduced identity cards and e-Shram portal registration for gig workers.
• Access to social security entitlements and financial benefits.

4. Women in Technology

• ₹600 crore gender budget under India AI Mission for digital education and skilling.
• Centre of Excellence on AI for Education to prepare women for tech jobs.

How Will Women Farmers and Entrepreneurs Benefit?

1. Simplifying loan requirements, such as delinking Kisan Credit Cards from land ownership, will help women farmers.
2. Tracking gender-disaggregated data will improve policy effectiveness.

20.5% of MSMEs are women-owned, employing 27 million people.

3. Providing collateral-free loans and alternative credit scoring models will help women entrepreneurs.
4. According to Bain & Company and Google, 30 million new women-owned businesses could create 150-170 million jobs by 2030.

How Will These Measures Help Achieve Viksit Bharat?

1. The government’s vision for zero poverty, 100% skilled labour, and India as the food basket of the world depends on women’s economic empowerment.
2. Gender-responsive budgeting, improved infrastructure, and social support will help achieve 70% women’s workforce participation by 2047.

Question for practice:

Examine how the Union Budget 2025-26 supports women’s economic empowerment through employment, entrepreneurship, and financial inclusion.