<p>Using a capability and empowerment perspective, this study examines how local governance in peri-urban India empowers female migrant workers. It investigates the mechanisms within Panchayati Raj Institutions (PRIs) and Self-Help Group (SHG) federations that enhance capabilities, income security, and agency, as well as the most effective combinations and the circumstances under which gender-neutral approaches fail to do so. This qualitative, multi-case study, based on secondary sources, analyses three sites: an SHG-linked agarbatti cluster in Chamarajanagar, migrant women in Delhi/NCR during the COVID-19 pandemic, and Nonadanga on Kolkata’s urban fringe. Four mechanisms were examined: credit and working capital, skills and production support, market linkages, and representation/rights protection. The results show that combining market intermediation with working capital yields greater and more sustainable earnings than training alone. Gender-responsive approaches that address mobility, care responsibilities, and documentation are more effective than gender-neutral ones. Institutionalised participation helps transform resources into agencies and achievements. The Kolkata case illustrates that insecure tenure can limit market access, even in proximity to demand. This study offers a mechanism-level analysis that links governance inputs to women’s economic outcomes. The limitations of this study include its reliance on secondary data and the limited number of case analyses performed. Policy suggestions include brokering buyers with working capital before training, institutionalising women’s representation, securing tenure and essential services, and using routine data for course correction.</p>