Institutional Barriers, Economic Capabilities, and Women’s Market Participation in India: Legal and Policy Implications for Entrepreneurship and Markets

Gender Equality, Financial Freedom, Women’s Empowerment, Financial Inclusion, Education Access, Entrepreneurship

Women’s market participation in India remains low despite emphasis on gender-inclusive policies. India holds 131^st position out of 148 nations in gender inequality index (Global Gender gap Report, 2025). The main obstacles towards gender equality are identified as social norms, poor literacy rate, fewer women in science jobs, and little bank access. This study examines how formal legal frameworks and informal institutions shape women’s market participation in India. There are barriers in the area of financial inclusion and access to education and digital literacy. Using policy and institutional analysis, this study applies a capability-institutional framework to analyze women’s empowerment at the state level in India. The analysis reveals that while women’s access to education and financial access has improved, institutional constraints weaken their capabilities. The findings highlights the gaps between prevalent legal guarantees and informal institutional practices. This study argues that these differences create market inefficiencies. These constraint women’s participation in labor and credit markets. Recommendations of the study include educational reforms, targeted financial literacy programs, and policies to increase female representation in decision-making.