In a progressive step aimed at promoting gender-inclusive entrepreneurship, the Tamil Nadu state government has announced a special subsidy scheme exclusively for women-led partnership firms, providing financial assistance and policy incentives to boost participation of women in business ownership and management.

The scheme, launched under the Tamil Nadu MSME Empowerment Initiative, offers a capital subsidy of up to 25% on fixed investment, subject to a maximum of ₹10 lakh, for eligible partnership firms where women hold at least 51% ownership or play a majority role in decision-making. The incentive is targeted at manufacturing, service, agri-processing, and trade-related ventures formally registered under the Indian Partnership Act, 1932.

Officials from the Department of Industries and Commerce confirmed that the subsidy will be disbursed through the Tamil Nadu Industrial Investment Corporation (TIIC) and will be supplemented with priority in land allotment, reimbursement of stamp duty, and fast-track clearances through the state’s single-window portal.

“This initiative recognizes the growing number of women forming partnership ventures with family members, professionals, or co-founders, and provides them the support needed to scale,” said Ms. R. Anuradha, Joint Director, MSME Department. “It also encourages formalization of women-led businesses that otherwise remain in the informal sector.”

To qualify, firms must submit proof of registration, a valid Partnership Deed showing women’s shareholding, and Udyam/MSME registration details. The policy is expected to benefit over 10,000 women entrepreneurs across the state in the initial phase.

Women’s business associations have welcomed the move, calling it a timely response to the post-pandemic recovery needs of female entrepreneurs. Legal experts also note that this policy may set a precedent for other states to introduce gender-targeted partnership firm incentives within their MSME frameworks.

Applications for the subsidy are now open via the state’s MSME department portal, with processing timelines set at 30 working days from date of submission.