Catalyzing Gender-Inclusive Economic Growth through MSMEs: A Comparative Policy Analysis of Women’s Empowerment in India and Indonesia

This paper examines the role of Micro, Small, and Medium Enterprises (MSMEs) in advancing women’s empowerment in India and Indonesia, focusing on a comparative analysis of policies aimed at promoting gender-inclusive economic growth. MSMEs are crucial to both nations’ economic development, contributing significantly to job creation and entrepreneurship, particularly for women. Despite various government initiatives like India’s Udyam Registration Portal and Stand-Up India scheme, and Indonesia’s UMKM Empowerment Program, women-owned MSMEs face persistent challenges in accessing finance, technology, and markets. The study identifies socio-cultural barriers, limited financial support, and technological gaps as key obstacles hindering the full participation of women in the MSME sector. By analyzing the effectiveness of existing policies in both countries, this paper explores opportunities for strengthening women’s roles in MSMEs, focusing on the potential of digital platforms and inclusive financial tools. The findings emphasize the need for targeted, region-specific interventions and robust policy frameworks to overcome these challenges and enable MSMEs to become engines of women’s empowerment. The paper concludes with practical recommendations to enhance policy implementation, improve access to resources, and foster sustainable, gender-equitable economic growth through MSMEs in both India and Indonesia.