Driving Inclusion: How Gender Lens Investing Is Reshaping Impact Capital

In the heart of rural India, women entrepreneurs are powering more than just homes - they’re lighting the path toward a more equitable economy. With solar lamps, fuel-efficient cookstoves, and small-scale enterprises (Self - Help Groups), women-led ventures are proving that when capital is directed intentionally, it can spark lasting change. But what if stories like these weren’t the exception - what if they were the norm?

This is the promise of Gender Lens Investing (GLI) - an approach to capital that sees gender not as a side note, but as a strategic, measurable lever for both impact and financial returns.

What Is Gender Lens Investing?

GLI is an intentional investment strategy that integrates gender-based considerations at every stage of the investment lifecycle - from deal sourcing and due diligence to post-investment engagement. It’s about recognizing that gender equity is not only a moral imperative but also a catalyst for smarter decision-making and stronger returns.

GLI goes beyond counting the number of women in leadership - it demands a deeper analysis of how businesses serve, employ, and empower women, and how that empowerment ripples across families, communities, and economies.

What Does Applying a Gender Lens Look Like?

1. Investing in Women-Led Enterprises

Directing capital toward women - led businesses helps close the gender funding gap while delivering competitive returns. Research shows that women entrepreneurs reinvest more in their communities - particularly in health, education, and wellbeing.

Example: A not-for-profit peer-to-peer lending platform allows everyday Indians to fund rural women entrepreneurs through microloans for dairy, handicrafts, and retail ventures. Prioritizing women borrowers here isn’t just ethical - it’s evidence-based: repayment rates are higher, and the developmental impact is multiplied.

2. Supporting Enterprises That Improve Women’s Lives

Some businesses embed gender impact in their very products and services - such as those improving menstrual health, maternal care, clean cooking solutions, or safety tech for women.

Example: A grassroots program trains rural women, known as 'Suryamukhis', to become clean energy entrepreneurs. They distribute solar lanterns and eco-stoves, not only earning income but also reducing indoor air pollution and improving safety in off - grid homes.

3. Promoting Equity in the Workplace

Gender-smart investing also includes assessing workplace policies - equal pay, leadership opportunities, anti-harassment frameworks, parental leave, and safe workspaces.

Example: A national network advocates for dignity, fair wages, and social protections for women workers in the informal sector. By investing in organizations that uphold these values, investors drive better retention, reputation, and long-term resilience.

Why It Matters for India

India has over 215 million women in the workforce, but just 20% of enterprises are women-led (NITI Aayog). This isn’t just a missed opportunity - it’s a $700 billion economic shortfall. That’s the estimated GDP gain if India closes the gender gap in workforce participation by 2025 (McKinsey Global Institute).

GLI offers a pathway to bridge this divide - by channeling capital toward women entrepreneurs, women-centric innovation, and gender-equitable workplaces. In doing so, it improves household incomes, lifts communities out of poverty, and accelerates inclusive development.

Looking Ahead: GLI as a Catalyst for India’s Growth

As India pushes toward its $5 trillion economy ambition, gender-smart investing is no longer a niche strategy - it’s a national imperative. Empowering women as entrepreneurs, employees, and economic agents is central to solving broader challenges of inequality, access, and sustainability.

The future of finance will be shaped by how deliberately we position women - not just as beneficiaries of development, but as leaders, investors, and architects of India’s growth story.

Our Views

At Forward Impact, we believe capital achieves its true potential when it is inclusive. Gender Lens Investing isn’t charity - it’s smart economics. By embedding gender across investment strategies, we can amplify financial returns while ensuring women remain at the heart of India’s development journey.

Because when women rise, entire communities move forward.

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Sources: NITI Aayog, McKinsey Global Institute report, YourStory