India’s Finance Minister Nirmala Sitharaman is set to introduce a series of incentives and measures aimed at boosting female labor force participation in the upcoming Budget 2025, scheduled for February 1.
This initiative is part of a broader strategy to achieve gender parity in the workforce and enhance the country’s GDP contribution.
The global female labor force participation rate stands at over 50%, compared to 80% for men.
In India, the rate is significantly lower at 41.7% for women and 77.2% for men.
This disparity highlights the need for targeted interventions to bring more women into the workforce.
Budget 2025: Proposed Measures, Task Force and Roadmap
The proposed measures include flexible work arrangements and better infrastructure support, such as improved public transport and creches at workplaces.
These initiatives are designed to make it easier for women to join and remain in the workforce.
A task force headed by Labour Secretary Sumita Dawra has been set up to enhance female labor force participation.
The task force is expected to submit its report by the end of January, which will form the basis of a roadmap to draw more women into the labor market.
Economic Impact and Vision for 2047
Indian women currently contribute 18% to the GDP, despite constituting 48% of the population.
Bridging the gender gap in employment could potentially lead to a 30% increase in the country’s GDP, according to experts.
This underscores the economic importance of increasing female labor force participation.
At the highest level, there is a consensus that achieving Viksit Bharat (developed country status) by 2047 is essential.
This requires bringing women’s participation in the workforce on par with the global rate.
This ambitious goal can only be achieved with targeted interventions and sustained efforts.
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