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India’s UDAY-PRIDE project promotes gender equality in MSMEs

08 December 2023 Rekha Jain

UDAY PRIDE shopfloor2

In India, micro, small, and medium-sized enterprises (MSMEs) stand tall, contributing almost 30% of the gross domestic product and producing over 40% of the nation's exports. However, the representation of women in the formal sector is low, and is getting lower, down from around 30% in 2000 to around 20% in 2022. According to the International Finance Corporation (IFC), women-owned enterprises make up around 10% of all MSMEs, with a mere 12% share in those engaged in manufacturing - a number that lags behind other major global economies.

The Government of India has initiated various measures to bridge this gender gap. Public procurement guidelines mandate a minimum of 25% of goods and services to be sourced from MSMEs, including 3% specifically from women-owned micro and small enterprises. Additionally, policies such as 'Mission Skill India,' providing subsidized loans for women-led businesses, and the granting of extended maternity leave, underline the government's commitment to fostering a more inclusive economic landscape.

Recognizing the critical importance of gender equality in achieving th Sustainable Development Goals, the United Nations Industrial Development Organization (UNIDO) is actively involved in promoting women's empowerment. UNIDO's UDAY-PRIDE programme, funded by the Ministry of Heavy Industries, Government of India, and implemented in collaboration with the Automotive Component Manufacturers Association of India (ACMA), is a great example.

UDAY-PRIDE goes beyond conventional interventions; it focuses on transforming the automotive component industry by promoting gender equality. The project strives to increase the participation of women as both employees and entrepreneurs in the sector. Through skill enhancement, equal job opportunities, and increased access to resources, UDAY-PRIDE empowers women to lead and benefit from the industrial sector.

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The programme's training initiatives and mentoring have not only developed women's skills but also nurtured leadership qualities.

An exemplary success story unfolded  at Exon Auto Components in Chennai, where a female employee with a passion for welding was nurtured by the UDAY-PRIDE team. Through training and skill development, she transitioned from a helper to a skilled welder.

Under the leadership of UDAY-PRIDE female counsellors for the auto component cluster, companies have demonstrated increased interest in women's empowerment. One example is the Pantnagar cluster in Uttarakhand state in northern India, involving five supplier companies for Tata Motors. In the Pantnagar cluster, where female participation was typically low, women now make up 30-40% of the workforce. The companies in the cluster report significant benefits from hiring more female employees, including increased productivity and better discipline.

Several companies working with the UDAY-PRIDE project have taken steps to create women-friendly workplaces. These initiatives include promoting healthy workplaces, introducing women-centric environments on shop floors, ensuring decent working conditions, and actively fostering women-centric enterprises. Additional measures, such as pick-up and drop services, work from home options, and financial support during emergencies, reflect a holistic approach towards women's well-being.

UDAY PRIDE GEM Award

The UDAY-PRIDE project was honoured with a Gender Equality Mobilization (GEM) Award 2023 during the twentieth session of the General Conference in Vienna on 28 November. The award recognizes UDAY-PRIDE's outstanding contribution to promoting gender equality and empowering women in India's MSME sector.