Policymakers and employers must work in concert to increase women's workforce participation in India.
In brief
- India must continue to increase efforts to build a care economy, where workplaces take greater responsibility for childcare and family welfare.
- Workplaces must ensure the necessary levels of safety and hygiene, while policymakers and employers must increase incentives to attract women, including building amenities such as working women's hostels.
- Reducing drudgery and developing skills and entrepreneurship go a long way in enabling greater workforce participation of women.
This year's theme for the International Women's Day–Accelerate Action– comes at an important time for India. As we reflect on our progress towards a developed economy, a central question remains— how can we leverage the many economic benefits of gender diversity in the workforce. According to World Bank, India's female workforce participation is approximately 41.7% which is rather low compared to male workforce participation of nearly 80%. Bahamas (90%) and Iceland (81%) fare the highest in the world in women employment statistics, and closer to home, India's near-shore neighbors—Cambodia (~70%), Vietnam (~69%), Singapore (62%) and Thailand (59%) fare much better.
The disproportionate burden of unpaid care work and other socio-cultural factors are among the leading causes for the low workforce diversity in India. Even after joining the workforce, lack of adequate support and workplace facilities often lead to many women dropping out after life events such as marriage and childbirth.
On the path to becoming a developed economy, India cannot afford to ignore the opportunity cost of women-led economic growth. Here are some thoughts on how India can increase gender inclusion in employment for the economic empowerment of women.
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Build a "care economy"
Socio-culturally viewed as a 'nurturer', a woman's role in the welfare of families often becomes a determinant for undertaking any economic activity. While a growing number of employers are institutionalizing care needs for women, much more effort is needed. India's 2024 Periodic Labour Force Survey (PLFS) data indicates a powerful correlation between building care ecosystems and female workforce participation, with 43.04% of women identifying childcare and homemaking responsibilities important for them to participate in work.
In recent years, the Government of India has stepped up its efforts to build a care economy. For example, the Palna Scheme introduced by the Ministry of Women and Child Development provides "Anganwadi cum Creches" to create a safe and secure environment for children. They also focus on nutrition and cognitive development of children, enabling mothers to undertake gainful employment. Many such schemes in every state are helping build supporting conditions for childcare and family welfare.
Improve workplace conditions
Workplaces must allow a safe, hygienic working environment for women. Policymakers and employers have an important responsibility to create these conditions. Recently, the Government of India launched the SHe-Box portal to bolster workplace safety for women. This unified platform enables women employees to file complaints and monitor their status, thereby ensuring timely action by relevant authorities.
The Smart Cities Mission, with an approved outlay of INR48,000 crore, contributes by incorporating gender-sensitive urban design, creating employment opportunities in technology and promoting digital inclusion. It also helps provide water and sanitation facilities for women in cities with facilities such as women-friendly toilets, and smart water management which allow women access to facilities through digital apps.
Affordable working women hostels and dormitories also go a long way. The Ministry of Women and Child Development manages the Working Women Hostel (WWH) scheme, providing safe and affordable housing for working women in cities, towns and rural areas along with day care facilities.
The government is also actively promoting women empowerment in the water and sanitation sectors through various flagship programs. The Swachh Bharat Mission's broader impact, with a total outlay of roughly INR1.96 lakh crore, creates women leaders in sanitation projects, entrepreneurial opportunities in waste management and behavioral change campaigns.
Reduce drudgery for women
The drudgery associated with the many roles traditionally defined for women has been a major factor in their absence from the workforce. Scouring for clean water is a common source of drudgery. Women in many states of India walk miles to gather safe and clean water for their families. The Jal Jeevan Mission (JJM) aims to change that. Across many states, JJM projects, with an approved outlay of approximately INR8 lakh crore, have alleviated the arduous task of fetching water, thereby freeing up their time for economic activities. After the implementation of women empowerment programs, such as JJM, many Indian states have witnessed a rise in women-led small-scale entrepreneurship and cottage industries.
Support the development of entrepreneurship skills
Skilling and entrepreneurship for women go a long way in financial independence for women, involving participation from both governments and employers.
Holistic skilling ecosystem: India must promote market-relevant skills training for women across emerging sectors like digital services, financial services, green jobs and traditional crafts. Government schemes for women entrepreneurs like SANKALP have successfully enhanced access to quality skills training for women, contributing to increased employability.
Micro-enterprise development with skilling support: It is necessary to provide end-to-end support from skilling to entrepreneurship combining technical and business skills. Programs such as Hastakala Setu and Handmade in India exemplify how women artisans can transition from skilled workers to micro-entrepreneurs.
Business incubation and mentorship for women entrepreneurs: India must set up women-focused business incubators that offer skilling, mentorship, market access and operational support. The recent Union Budget announcement of term loans for women entrepreneurs will yield better outcomes if complemented with structured capacity-building programs.
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