A key highlight of the Union Budget 2025-26 is the introduction of a new scheme aimed at empowering women entrepreneurs, with a special focus on first-time entrepreneurs from Scheduled Castes (SC) and Scheduled Tribes (ST). Under this initiative, ₹2 crore term loans will be disbursed to 5 lakh SC/ST women entrepreneurs over five years, ensuring access to formal credit. The loans will be collateral-free, with subsidized interest rates and flexible repayment options to overcome systemic credit barriers faced by marginalized communities. By easing collateral requirements and offering concessional interest rates, the program seeks to foster grassroots entrepreneurship, particularly in rural and tribal regions, thereby uplifting SC/ST women through inclusive fiscal policies.

Announcing the scheme on February 1, 2025, Finance Minister Nirmala Sitharaman emphasized its alignment with India's Viksit Bharat vision and its foundation on the success of the Stand-Up India initiative. Recognizing the importance of women's participation in economic activities, the government and industry have proposed measures to boost workforce inclusion, creating a supportive environment for sustainable economic growth. By addressing key challenges such as financial awareness, skill development, and market access, this initiative has the potential to unlock new opportunities for women entrepreneurs in Ladakh, transforming them into key drivers of economic progress and sustainable development.

Entrepreneurship in Ladakh

Ladakh’s industrial and manufacturing sector remains in its early stages, with 95% of micro and small industries operating at the household level as of 2021. However, the region has the potential to become a model for sustainable and innovative industrialization. To strengthen this sector, the government must formalize these units through targeted schemes, improved access to credit, and capacity-building programs, enabling them to scale and integrate into broader supply chains.

Despite the presence of 1,270 industrial units, fewer than 50 are small-scale food processing units, catering solely to domestic demand. Encouraging investment in food processing infrastructure, promoting niche products such as organic and traditional foods, and connecting producers to national and international markets can unlock significant economic opportunities.

Ladakh produces 40–50 tons of Pashmina wool annually—less than 1% of global production. Enhancing the Changthang Development Package, strengthening the supply chain, improving wool quality, and branding Ladakh Pashmina as a premium product could help the region capture a larger share of the global market.

Additionally, while Ladakh has 34 handicraft training centers, only 3,000 artisans have been trained in the past five years. Handicrafts, a cornerstone of Ladakh’s cultural heritage, hold substantial export potential. Expanding training programs, integrating modern design and marketing skills, and developing robust market linkages can revitalize this sector, fostering economic growth and preserving traditional craftsmanship (Vision 2050 for the Union Territory of Ladakh).

Economic Opportunities for Women Entrepreneurs

The Union government’s recent scheme holds immense potential, particularly for Ladakh, where entrepreneurship is expanding rapidly. Women entrepreneurs are playing a pivotal role in driving the region’s economic growth through sustainable tourism, handicrafts, renewable energy, and agri-technology. With institutional support and innovation, they are seamlessly blending tradition with modernity. Their success stories highlight how empowering women fosters community growth and positions Ladakh as a model of entrepreneurial excellence. The 2025 budget initiative presents a historic opportunity to transform the lives of emerging women entrepreneurs in Ladakh, reinforcing a national commitment to boosting women’s workforce participation, inclusive economic growth, and women’s empowerment.

This initiative is particularly significant for Ladakh’s predominantly Scheduled Tribe (ST) population. By addressing the funding gap faced by marginalized communities, it has the potential to reshape Ladakh’s entrepreneurial landscape, creating a level playing field for first-time women entrepreneurs from ST backgrounds. Many tribal women entrepreneurs struggle with limited access to credit, professional networks, and essential resources. This scheme reflects the government’s efforts to bridge financial disparities by ensuring easier access to capital for sections of society that often face challenges in securing loans. By fostering the growth of women-led businesses, the initiative will contribute to regional economic development, job creation, and inclusive growth.

Women entrepreneurship schemes for tribal communities act as economic catalysts for regional development. By promoting entrepreneurship and job creation, they stimulate economic activity—generating higher incomes, increasing consumer spending, and ultimately driving economic growth. For instance, a loan to a tribal woman for a food processing unit not only supports her business but also boosts demand for farmers’ produce, packaging suppliers, and transportation services. Additionally, increased business activity leads to higher GST revenue for the government and strengthens Ladakh’s overall GDP. Using economic tools like cost-benefit analysis and the multiplier effect, it is clear that such schemes have far-reaching impacts. For the common people, these initiatives translate into better opportunities, higher incomes, and a brighter future for their families and communities. In essence, government schemes are not just expenditures; they create a ripple effect that uplifts the entire regional economy and propels it toward long-term prosperity.

Success Stories of Ladakh’s Women Entrepreneurs

Ladakh’s women entrepreneurs are redefining the region’s economic landscape with inspiring success stories across diverse sectors. Rigzen Lachic (Dolker Boutique Hotel) is transforming tourism with authentic hospitality, while Nilza Wangmo (Alchi Kitchen) is revolutionizing food and hospitality through farm-to-table traditions. Padma Yangchan (Namza) is preserving Ladakhi heritage through handicrafts and social enterprise, while Sonam Angmo and Stanzin Minglak (Lena Startup) are pioneering sustainable fashion. Thinlas Chorol (Ladakhi Women’s Travel Company) is championing eco-tourism, and Rigzin Angmo, Rigzin Yangdol, and Padma Angmo (Kangla Nyishar/Nima Goos Goos) are driving innovation in agri-processing and food enterprises. Meanwhile, Fatima Banoo (SHG Leader) is empowering rural livelihoods through agriculture.

These stories matter because they demonstrate how women-led initiatives are not only generating economic opportunities but also empowering communities, preserving traditions, and promoting sustainable development.

Despite these inspiring examples, significant challenges remain. Many women entrepreneurs in Ladakh still rely on personal savings or informal loans due to limited awareness of government schemes. Women’s participation in entrepreneurship remains constrained by financial barriers and inadequate institutional support. Raising awareness of central government initiatives is crucial to unlocking opportunities for young women entrepreneurs and driving regional economic progress.

Recognizing these challenges, the Government of India has introduced a groundbreaking scheme in the Union Budget 2025 to empower women entrepreneurs from marginalized communities. This initiative not only provides financial support but also creates a multiplier effect across various sectors. By offering credit facilities at subsidized interest rates, the scheme reduces borrowing costs, lowers capital expenses, and enhances profitability. This, in turn, enables women to reinvest, scale their businesses, and explore new markets with confidence.

This initiative opens doors to unprecedented opportunities, leveraging Ladakh’s unique strengths. Horticulture is poised to become a cornerstone of the region’s economy, with apricot-based products, traditional crafts, and women-led ventures in solar and wind energy solutions, e-commerce, and content creation offering immense potential.

New women entrepreneurs in Ladakh have the power to pioneer innovative ventures. By embracing a risk-taking mindset, conducting rigorous market research, and leveraging available support, they can reshape Ladakh’s economic landscape. The 2025 Budget also promotes eco-friendly homestays by offering MUDRA loans under the Pradhan Mantri MUDRA Yojana (PMMY), further supporting women-led businesses in the tourism sector.

Ladakh stands at the cusp of an economic transformation driven by women entrepreneurs. With the right support, awareness, and policy framework, these women can fuel regional economic growth, create jobs, and establish Ladakh as a hub of sustainable entrepreneurship.

Way Forward

The Union Territory Administration of Ladakh is making significant strides in empowering women across all sections of society by creating opportunities and fostering inclusive growth. This includes the effective implementation of central government schemes for vulnerable and marginalized communities, such as: Pradhan Mantri Matru Vandana Yojana (PMMVY) – supporting maternal health and nutrition; POSHAN Abhiyaan – addressing malnutrition and child development and Pension schemes for senior citizens and widows – ensuring financial security for the elderly and vulnerable women

In addition to these social welfare initiatives, the UT Administration has accelerated development programs with a strong focus on entrepreneurship, reskilling, and upskilling the youth. The introduction of Kaushal Melas in Leh and Kargil and short-term training programs under Pradhan Mantri Kaushal Vikas Yojana (PMKVY) demonstrates a proactive approach to workforce development and economic empowerment.

Beyond existing schemes, the UT Administration should actively explore the newly announced scheme in the Union Budget 2025, specifically designed to empower emerging women entrepreneurs from Scheduled Tribes (STs). Ensuring equitable access to financial resources, training, and market linkages will be key to fostering inclusive and sustainable growth.

A landmark step in this direction is the announcement of 33% reservation for women in the Hill Councils of Leh and Kargil. This progressive policy is set to create a transformative wave of women’s empowerment across various sectors in Ladakh. Greater representation in decision-making bodies will enable women to play an active role in governance, entrepreneurship, education, and community development.

By addressing gender disparities and promoting equitable opportunities, the administration is laying the foundation for a more inclusive and prosperous Ladakh—one where women are at the forefront of shaping the region’s socio-economic landscape.

(The writer is an Assistant Professor of Economics, GDC Khaltse, University of Ladakh.You can send your views and comments at aahil000riyaz@gmail.com)