Digitalisation has transformed the way people communicate, work, conduct business, access financial services and participate in economic activities. For women, digital technologies can provide new opportunities for employment, entrepreneurship, financial independence, education and access to markets. However, access to a smartphone or internet connection alone does not ensure meaningful participation in the digital economy. Women also require the knowledge and confidence to use digital devices effectively. Digital literacy therefore represents an important component of women's economic empowerment. The present study examines the role of digital literacy in promoting women's participation in the digital economy, with particular reference to employment, entrepreneurship and financial inclusion. The study is descriptive in nature and is based on secondary data collected from government reports, institutional publications, international organisations and published research. The study finds that India has made considerable progress in expanding digital infrastructure and digital financial services, but a gender gap continues in actual usage and digital capabilities. Government has made many initiatives, however, lack of digital skills, affordability constraints, limited access to internet, social and cultural barriers, cyber security concerns and inadequate financial literacy continue to restrict women's effective participation. The paper suggests a shift from merely providing digital access towards developing practical, safe, financially relevant digital capabilities among women.