India, a nation with ambitious economic goals, faces a pressing challenge: boosting women workforce participation. According to a recent report by The/Nudge Institute, India must urgently address this issue to unlock a staggering $14 trillion contribution to its economy.
Kanishka Chatterjee, Director & Head of The/Nudge Prize, emphasised the urgency of this challenge.
“India’s demographic dividend and dreams of a $30 trillion economy cannot be realised without boosting the participation of women in the workforce,” Kanishka said.
He acknowledged the strides made but stressed the need for urgent and sustained action to overcome economic, social, and cultural barriers.
The Current Scenario of Women Workforce
India’s female labor force participation rate (LFPR) currently stands at 37 percent.
While progress has been made, women still encounter significant barriers in accessing quality jobs and facing job insecurity. To achieve the desired economic impact, India needs to nearly double its LFPR to 70 percent by fiscal year 2047.
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“When we looked at PLFS data, we understood what the supply side is or where women or men work today,” the report said.
“But there are no other data pointers available where we can clearly see what are the demand markers available in India which will hire women, or which may be better suited for women to take jobs or to drive their entrepreneurial journeys,” it said.
The $14 Trillion Opportunity from Women Participation in Workforce
As India aspires to become a $30 trillion economy by 2047, the report underscores the critical role of women in achieving this goal.
The math is clear: an additional 400 million women must join the workforce to contribute the targeted $14 trillion. However, with only 110 million projected female entrants by then, integrating an additional 145 million women becomes imperative.
“One of the key things to consider, if we need to solve or address labour force participation rate, is two have a holistic approach,” the report added.
“Not only to see how labour is available and what skills are available, but also to see what is driving demand today — and this is exactly what we also bring out in the report,” it said.
Gender Disparities and Challenges
Job Security and Recovery Gap: Women face a stark disparity in job security compared to men. They are seven times more likely to lose their jobs and eleven times less likely to recover from job loss.
By 2020, nearly half of the women employed in 2019 had exited the workforce, highlighting the fragility of female employment.
Sectoral Disparities: Women predominantly work in low-productivity sectors such as agriculture and manufacturing, where advancement opportunities are limited.
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In construction, women represent just over 12 percent of the workforce, often earning significantly less than men in unskilled roles.
Pandemic Impact: The COVID-19 pandemic exacerbated existing challenges. Many rural females were forced back into work due to income loss or job loss by primary earners.
The Way Forward
Policy Reforms: Implement policies that promote gender equality, including affordable childcare, flexible work arrangements, and equal pay. Encourage private sector initiatives to hire and retain more women.
Skill Development: Invest in skill development programs tailored to women, enabling them to access higher-paying jobs. Bridge the digital divide to enhance women’s employability in the tech-driven economy.
Changing Mindsets: Challenge societal norms and stereotypes that limit women’s career choices. Promote women’s leadership and entrepreneurship.
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