(General Studies III – Economy Section – Indian Economy and issues relating to Planning, Mobilization of Resources, Growth, Development and Employment. Inclusive Growth and issues arising from it.)
- Women’s labour force participation rate (LFPR) in India has historically been low, especially when compared to men and the global average.
- While the global average female LFPR stood at 53.4% in 2019, India’s female LFPR declined from 38.9% in 2000 to 23.3% in 2018.
- In contrast, the male LFPR in India has remained significantly higher, at around 76%. This disparity highlights underlying structural issues that hinder women’s participation in the workforce.
Reasons for Low Female Labour Force Participation in India –
Social and Cultural Dimensions –
- Cultural Norms: Traditional gender roles and societal expectations often confine women to unpaid domestic work and caregiving responsibilities.
- Safety Concerns: Lack of safe transportation and inadequate workplace safety measures deter women from seeking employment outside their homes.
- Educational Attainment: Despite improvements, gender gaps in higher education persist, affecting women’s employability in skilled sectors.
- Occupational Segregation: Women are often restricted to certain types of jobs that are deemed ‘appropriate’ by societal norms, limiting their employment opportunities.
- Marriage and Family Responsibilities: Early marriage and childcare duties often lead to career interruptions or withdrawal from the workforce.
Economic Dimensions –
- Wage Disparities: Women often receive lower wages than men for similar work, which discourages them from entering the labor market. The gender wage gap in India is estimated to be around 20%.
- Informal Sector Dominance: A significant proportion of women (nearly 95%) are employed in the informal sector, where job security, benefits, and protections are minimal.
- Unpaid Family Labour: A large number of women are engaged in unpaid family labor, particularly in rural areas, which is often unaccounted for in official statistics.
Structural and Policy Dimensions –
- Limited Access to Resources: Women face challenges in accessing credit, land, and other productive resources due to gender biases and lack of collateral.
- Inadequate Policy Implementation: Despite progressive policies, implementation gaps persist, affecting women’s ability to benefit from various schemes and protections.
- Technological Divide: The digital gender gap limits women’s access to emerging job opportunities in the tech sector.
To address the issue of low female LFPR, a multi-faceted approach is required –
1. Policy Interventions –
- Implement and enforce policies ensuring equal pay for equal work.
- Provide safe and accessible transportation options for women.
- Mandate basic facilities like toilets and crèches in workplaces.
- Strengthen implementation of the Maternity Benefit Act and Sexual Harassment of Women at Workplace Act.
2. Educational and Skill Development –
- Enhance access to quality education and vocational training for women.
- Promote STEM education among girls to broaden their career opportunities.
- Implement skill development programs tailored to local economic needs.
3. Supportive Infrastructure –
- Improve access to resources such as water and market facilities in rural areas to enable women’s participation in agricultural activities.
- Develop affordable and quality childcare facilities to support working mothers.
- Invest in digital infrastructure to promote remote work opportunities.
4. Economic Empowerment Programs –
- Promote women’s entrepreneurship through access to credit and mentorship.
- Encourage and support self-help groups and cooperatives to provide a support.
- Implement gender-responsive budgeting at all levels of government.
| Some Key Facts 1. According to a 2018 World Bank report, India has one of the lowest female labor force participation rates in the world, ranking 120th among 131 countries. 2. The McKinsey Global Institute estimates that achieving gender equality in India would have a larger economic impact than in any other region in the world, potentially adding $770 billion to India’s GDP by 2025. 3. The female-to-male ratio of entrepreneurial activity in India is only 0.6, indicating a significant gender gap in business ownership. 4. Increasing women’s labor force participation by 10 percentage points could add about $700 billion to India’s GDP by 2025, according to a report by Bain & Company. |
Case Study: Women in Traditional Occupations in Bhuj, Gujarat –
- A study on women in the slums of Bhuj, Gujarat, revealed a preference for traditional home-based employment, such as bandhani, embroidery, and fall beading, due to the flexibility it offers.
- Despite the low income, these occupations allow women to balance work and household responsibilities. The study also highlighted the potential of collectivizing women under SHGs to enhance their skills and market access.
- Organizations like the Kutch Mahila Vikas Sangathan (KMVS) are working towards empowering women by linking them directly to markets and providing necessary training.
Empowering women economically has far-reaching benefits for society and the nation. Enhancing female LFPR can significantly contribute to economic growth, reduce poverty, and improve family welfare. Recent studies suggest that increasing women’s participation in the workforce could add $770 billion to India’s GDP by 2025.
