The Gender Angle to India’s Economic Vulnerabilities: A Powerful Call for Inclusive Growth
The Gender Angle to India’s Economic Vulnerabilities: Unlocking a Critical Path to Growth
Context: The looming U.S. tariff hike on Indian exports has exposed a deeper internal fault line — India’s persistently low female labour force participation. At a time when the country is nearing the end of its demographic dividend window, failing to integrate women into the workforce risks weakening both growth momentum and resilience against external shocks.
Why are women essential for economic growth?
Women’s economic participation is not just a social ideal but a growth multiplier. According to the IMF, closing gender gaps could boost India’s GDP by 27%. With India’s economy at $4.19 trillion and poised to be the world’s third-largest, women’s inclusion is crucial to sustain momentum.
- Employment footprint: Labour-intensive export sectors like textiles, leather, gems, and footwear, employing nearly 50 million workers, are disproportionately female. U.S. tariff shocks could destabilise these jobs, showing how women’s economic security links directly to national competitiveness.
- Demographic dividend: India’s working-age population will peak by 2045 (Economic Survey 2022-23). Without higher female labour force participation (FLFPR), the dividend risks being squandered, as seen in Southern Europe.
What measures have been taken to bolster women’s participation in the workforce?
India has initiated multiple interventions at the policy, state, and enterprise levels, but progress remains uneven.
- Government measures:
- Maternity Benefit (Amendment) Act, 2017 extended paid leave to 26 weeks.
- Stand-Up India provides loans for women entrepreneurs.
- Mahila Samman Savings Certificate (Budget 2023-24) encourages financial inclusion.
- Rajasthan’s Indira Gandhi Urban Employment Guarantee Scheme created over 4 crore person-days, with 65% women beneficiaries, enabling flexible local jobs (Economic Survey 2022-23).
- State innovation: Karnataka’s Shakti scheme (2023) offering free bus travel increased women’s ridership by 40%, improving access to jobs and education (Down To Earth, 2024).
- Private sector case study: Urban Company employs 15,000+ women service providers earning ₹18,000–25,000/month with insurance and training, showing how gig work can be empowering when formalised.
- Global lessons:
- China raised FLFPR through state-backed care and education.
- Japan improved GDP per capita by 4% after raising FLFPR from 63% to 70% via workplace reforms. These highlight the need for care infrastructure, legal protections, and part-time work models in India.
