TN addresses women to increase height

Tamil Nadu is banking on women — both in terms of entrepreneurship and manufacturing power — to achieve its goal of a $1 trillion economy. Already, the state accounts for 42% of women working in factories nationwide; and the percentage of women in the workforce is higher than the national average at 35% in rural areas and 23% to 25% in urban areas. “As we strive towards a $1 trillion economy, women’s contribution to startups, SMEs and various industries is crucial,” says state industries minister TRB Rajaa. “Focused policies like DEI wage subsidy for new investments, training of women under Naan Mudhalvan scheme, Pudhumai Penn scheme, free bus pass scheme, various initiatives under TN Rise scheme and women-focused incentives under StartUp TN scheme are not only about gender equality but also about harnessing the powerful economic power through women entrepreneurship and labour market participation,” she adds.
Given Tamil Nadu’s industrial diversification in recent times, this is a smart strategy. Economists agree that the state needs more than just additional investment to achieve the $1 trillion target. That’s why TN is aggressively diversifying into R&D-led investments in new-age sectors. “There is a convergence of sectors that we are promoting with women’s employment. For example, electronics is women-friendly, as is non-leather footwear manufacturing. TN is a labour-rich state, so women are a key factor in our economic growth,” says industries secretary V Arun Roy.
The series of coordinated initiatives are indicative of the government’s thinking. The state government recently launched TN Rise (Tamil Nadu Rural Incubator & Startup Enabler) to create more women-led startups in rural areas. An initiative of the state-run Tamil Nadu Rural Transformation Project, the platform is funded by the World Bank and will be running both women entrepreneurs and entrepreneurial groups. “TN Rise will help entrepreneurs in the unorganised sector scale up, diversify their product base, leverage government schemes for financial support and leverage marketing tie-ups. As a precursor to the launch, we conducted bootcamps in all districts, inviting women entrepreneurs facing challenges to come forward,” says S Divyadharshini, managing director, Tamil Nadu Corporation for Development of Women. Out of nearly 3,000 who did so, the programme has identified the first batch of 200 who will be trained, guided and supported, she adds.
TN Rise is the latest platform focusing on women entrepreneurship. The MSME department has been working on funding as well as skilling and offering market linkages. “There are over 4,400 women-led startups with at least one woman co-founder out of over 9,000 startups in TN,” says Archana Patnaik, secretary, MSME. Under EDII (Entrepreneurship Development and Innovation Institute, Govt of Tamil Nadu), 7,556 women entrepreneurs were trained last fiscal year and around 5,550 have been trained this year so far, she says. “Apart from exclusive mentoring and accelerator support, financial incentives are also provided. For example, 25% of Tanseed’s seed funding is earmarked (for women) and the funding has gone up to Rs 15 lakh from Rs 10 lakh,” says Patnaik. So far, 51 such startups have benefited (total funding of Rs 5.8 crore). Similarly, nine women-led startups have benefited under the TN SC/ST Startup Fund (total funding of Rs 5.6 crore). “Tansidco has also set up five industrial parks exclusively for women,” she adds.
And under the Annal Ambedkar Business Champions Scheme launched a year ago for SC/ST entrepreneurs, 288 women have received loans worth ₹62.87 crore with a subsidy of ₹33.09 crore, says Patnaik. “This is important because it is not just about facilitating credit but also training and helping with marketing linkages. Similarly, under PMFME, specifically food processing, 2,419 women entrepreneurs have benefited in the last three years,” she says.
The MSME focus on women entrepreneurship is part of a broader focus on women’s development, as outlined in the Tamil Nadu State Policy for Women 2024, launched earlier this year. During a panel discussion at the Women Business Council of the MCCI, Pooja Kulkarni, CEO of the Tamil Nadu Infrastructure Development Board, explained how the policy aligns with the state’s economic goals. The Tamil Nadu government wants to promote industries that help women transition from informal to formal employment, and this requires improving skills. For this, the Skill Development Corporation is imparting skills in AI, electronics, programming, logistics, hospitality, management and healthcare, she said.
To this end, the government is working with industry on training and internships that make students employable. Industry, for its part, understands how important this collaboration is. As TN becomes a hub for manufacturing and technology hubs, there is “a huge appetite from the private sector,” says Dr Lakshmi Venu, director of TAFE. To really thrive, the industry needs “skilled talent at scale,” so “attracting women to the sector, both in manufacturing and entrepreneurship, will be essential.” The way forward, she says, is “partnerships between education and industry. Tamil Nadu has a strong university ecosystem, and both industry and university have a history of collaboration.” This, she says, will create a conducive “environment to attract more manufacturing-led growth by attracting more women to manufacturing.”