New Delhi, July 22 -- Over the past 25 years, the share of women-owned enterprises in the Indian economy has been steadily rising, a promising development amid the concerns surrounding low female labour force participation.

We ask, what lies behind this growth? How large are these enterprises? Do they operate primarily in manufacturing or services? Are they concentrated in specific industries within these sectors?

Crucially, what are the constraints faced by women-owned enterprises, and how can we fully tap the potential of such enterprises?

Data from the Economic Census (EC) of India shows a steady increase in women-owned enterprises between 1998 and 2013, both in manufacturing and services. We observe sharp growth particularly betwee...