INDIA'S GROWTH STORY NEED MORE WOMEN IN THE WORKFORCE

Why In News?

Boosting India's low female workforce participation is a vital economic strategy capable of adding nearly two percentage points to GDP growth.

What is Female Labour Force Participation (FLFP)?

It refers to the percentage of women aged 15 years and above who are either employed or actively seeking employment in the labour market. 

It excludes women engaged only in unpaid domestic and caregiving work. 

In India, FLFP is primarily measured through the Periodic Labour Force Survey (PLFS) conducted by the National Statistical Office (NSO).

Key Data 

• Female LFPR (15+ years): 32.7% in June 2026, compared with 32.0% in June 2025.

• Rural Female LFPR: 36.6% (June 2026).

• Urban Female LFPR: 24.8% (June 2026).

• Overall LFPR (15+ years): 54.4% in June 2026.

Why is FLFP Important?

• Economic Growth: Raising FLFP expands the workforce, boosts productivity and supports inclusive growth. Economists estimate that significantly increasing women's workforce participation could add around US$700 billion to India's GDP at current productivity levels.

• Gender Equality: FLFP is a key indicator of women's economic empowerment and progress towards SDG 5 (Gender Equality) and SDG 8 (Decent Work and Economic Growth).

• Demographic Dividend: Higher female participation helps India better utilise its working-age population and improve household incomes.

Why is Higher Female Workforce Participation Important?

Economic Growth Acceleration: Increasing Female Labour Force Participation (FLFP) by 10 percentage points can raise India's annual GDP growth by nearly 2 percentage points.

Emerging Economies Impact: According to the IMF, raising female labour force participation by 5.8 percentage points can increase the GDP of emerging economies by around 8%, reflecting the strong macroeconomic gains from gender inclusion.

Demographic Dividend: India has nearly 65% of its population below 35 years. Integrating more women into productive employment is critical to achieving the Viksit Bharat 2047 vision and converting the demographic dividend into sustained economic growth.

Poverty & Human Capital: The World Bank finds that higher female earnings improve household income, nutrition, children's education and healthcare, creating intergenerational gains and helping reduce poverty and inequality.

Innovation & Productivity: Nobel Laureate Claudia Goldin (2023) demonstrated that reducing gender barriers improves labour-market efficiency, innovation and long-term productivity, especially in knowledge-intensive sectors.

Industrial Output Expansion: According to the World Bank, increasing women's participation in manufacturing could raise India's factory output by nearly 9%, strengthening the Make in India initiative.

Global Competitiveness: Countries with higher female workforce participation, such as Vietnam (68%) and Bangladesh (42%), have leveraged women-led manufacturing to become major export hubs. India can similarly strengthen its global value-chain integration.

Larger Workforce: Raising India's female labour force participation to 55% could bring nearly 90 million additional women into the workforce, significantly expanding the country's productive capacity.

Inclusive Growth & SDGs: Higher FLFP accelerates progress towards SDG 5 (Gender Equality), SDG 8 (Decent Work & Economic Growth) and supports inclusive, sustainable development.

Government Initiatives Supporting Women's Employment

Mission Shakti (2022–26): Umbrella scheme comprising Sambal (women's safety) and Samarthya (women's empowerment), integrating programmes such as Beti Bachao Beti Padhao (BBBP) and PM Matru Vandana Yojana (PMMVY) to improve women's education, skills and employability.

DAY–National Rural Livelihoods Mission (DAY-NRLM): Supports over 10 crore rural women through 90 lakh+ Self-Help Groups (SHGs), promoting self-employment, entrepreneurship and financial inclusion.

Lakhpati Didi Initiative: Targets creation of 3 crore "Lakhpati Didis", enabling SHG women to earn ₹1 lakh or more annually through enterprise development and skill enhancement.

Namo Drone Didi: Aims to provide 15,000 women SHGs with agricultural drones for precision farming, generating new livelihood opportunities in rural areas.

Skill India Mission & PM Kaushal Vikas Yojana (PMKVY): Provides industry-oriented vocational training to women through Pradhan Mantri Kaushal Kendras (PMKKs) to improve employability and entrepreneurship.

Pradhan Mantri Mudra Yojana (PMMY): Offers collateral-free loans up to ₹20 lakh (revised limit) for micro-enterprises, with women accounting for a majority of Mudra loan beneficiaries.

Stand-Up India Scheme: Provides bank loans of ₹10 lakh–₹1 crore to at least one woman entrepreneur per bank branch for establishing greenfield enterprises.

Prime Minister Viksit Bharat Rozgar Yojana (PM-VBRY): Promotes formal employment by providing incentives of up to ₹15,000 for first-time employees and up to ₹3,000 per month per additional employee to employers. The scheme has already facilitated employment for 15 lakh beneficiaries.

Women in STEM: Schemes such as WISE-KIRAN and SERB-POWER support women scientists through research grants, fellowships and career opportunities in science and technology.

Major Challenges to Higher Female Labour Force Participation (FLFP)

Low-Quality Employment: Nearly 90% of employed women work in the informal sector, where written contracts, maternity benefits, pensions and social security are limited. 

• A large share of the recent rise in FLFP has been driven by self-employment and unpaid family work, rather than formal jobs.

Occupational Segregation: Women remain concentrated in low-paying sectors such as agriculture, apparel, beauty, domestic work and healthcare. In Industrial Training Institutes (ITIs), female enrolment in technical trades such as fitter, machinist and electrician remains below 5%.

Workplace Safety & Mobility: Concerns over sexual harassment, unsafe public transport and inadequate workplace security discourage women from working in factories, night shifts and distant workplaces.

Limited Childcare Infrastructure: Childcare remains a major barrier. A recent NSO survey (2026) found that 69% of urban women outside the labour force cited childcare and household responsibilities as the primary reason. Less than 10% of Anganwadi Centres are located in urban areas, limiting childcare support for working mothers.

Gender Bias in Hiring & Promotions: Women continue to face discrimination in recruitment, wages and promotions, with limited representation in leadership and STEM occupations. Women in India's major cities earn about 23% less than men, according to recent NSO findings.

High Burden of Unpaid Care Work: Women perform a disproportionate share of unpaid household and caregiving responsibilities, limiting their availability for paid employment. The ILO identifies unpaid care work as one of the biggest barriers to women's labour-force participation globally.

Low Formal Employment: Only 15.9% of working women are in regular salaried or contractual jobs, with most engaged in self-employment or unpaid family work.

Skill Mismatch & Digital Divide: Despite improvements in education, many women lack market-relevant technical and digital skills required for high-growth sectors such as AI, manufacturing and electronics.

Rural–Urban & Regional Disparities: Female participation varies across states and between rural and urban India because of differences in industrialisation, education, mobility and social norms.

Limited Access to Finance & Assets: Restricted ownership of land, property and productive assets, along with lower access to formal credit, constrains women's entrepreneurship and economic independence.

Persistent Social Norms: Early marriage, patriarchal attitudes and expectations that women prioritise unpaid domestic work continue to reduce labour-force participation despite rising educational attainment.

Measures to Increase Women's Workforce Participation

Expand Childcare & Creche Facilities: Establish full-day crèches near workplaces under the National Creche Scheme and strengthen Anganwadis as childcare centres. 

Improve Safety in Transport & Workplaces: Ensure safe public transport, adequate street lighting, women-friendly industrial zones and strict implementation of the POSH Act, 2013, enabling more women to work in factories and night shifts.

Promote Flexible Work: Encourage hybrid work, remote work, flexible timings and part-time employment. The ILO (2024) notes that well-designed flexible work arrangements can improve women's employment while safeguarding career progression.

Strengthen STEM & Digital Skills: Expand scholarships, coding, AI and digital-skilling programmes for girls through Skill India, PMKVY and IndiaAI Mission, increasing women's participation in future-ready sectors.

Encourage Formal Employment: Promote written contracts, ESIC, EPFO, maternity benefits and health insurance for women in the informal sector to improve job quality and retention.

Address Gender Bias: Introduce gender-sensitisation, equal-pay audits, transparent promotion systems, mentoring and leadership programmes. NITI Aayog's "From Intent to Impact" (2025) recommends inclusive hiring, mentorship and workplace infrastructure.

Promote Non-Traditional Livelihoods (NTLs): Scale up training for women in drone operations, EV maintenance, solar installation, welding, plumbing, AI and semiconductor manufacturing, as recommended by NITI Aayog.

Replicate the Tamil Nadu Model: Expand women's industrial hostels, dedicated bus transport and industrial parks, learning from Tamil Nadu, which employs around 40% of India's female factory workforce.

Strengthen Self-Help Groups (SHGs): Scale up DAY-NRLM, Kudumbashree, Lakhpati Didi and Namo Drone Didi to promote women-led entrepreneurship and rural enterprises.

Strengthen Financial Inclusion: Improve women's access to Mudra loans, Stand-Up India, Jan Dhan accounts, digital payments and collateral-free credit for entrepreneurship.

State-Level Performance Monitoring: Link incentives to states for improving Female Labour Force Participation (FLFP) under SDG Goal 5 and Goal 8, encouraging competitive federalism.  

Conclusion

To achieve the dream of Viksit Bharat by 2047, India must shift from just welfare policies to gender-transformative actions that give women equal access to safe, high-quality, and modern jobs.

Source: THEHINDU