Boosting Women’s Workforce Participation Could Add 30% to India’s GDP, Experts Say

 New Delhi: India is exploring various strategies, including incentives, to boost the female labor force participation rate, according to sources. Finance Minister Nirmala Sitharaman may outline a plan for this in the upcoming budget on February 1, they noted.

"Incentives might be integrated into employment-linked incentive schemes," one source informed us.

Globally, the female labor force participation rate exceeds 50%, while for men, it stands at 80%. In India, the female participation rate is currently at 41.7%.

Flexible work arrangements for women and the development of adequate infrastructure to encourage their participation in the workforce are also under consideration. An advisory may be issued regarding flexible work options for women, potentially sector-specific, such as initiatives within the care economy.

Additionally, measures are being explored to improve women’s mobility and public transport, along with infrastructure support like on-site creches at workplaces.

A task force led by Labour Secretary Sumita Dawra, established by the Ministry of Labour and Employment to boost female labor force participation, is likely to submit its report by the end of this month. This report will serve as the foundation for a roadmap aimed at increasing women’s participation in the workforce, according to the sources.

There is a consensus at the highest levels that to achieve the goal of Viksit Bharat (developed country status) by 2047, women's participation in the workforce should match the global rate. This, they believe, can only be achieved through targeted interventions.

Such initiatives would not only increase women’s contribution to the gross domestic product (GDP) but also enable the country to fully capitalize on its demographic dividend.

According to the National Family Health Survey, Indian women contribute 18% to the GDP, despite making up 48% of the population. Experts suggest that closing the gender gap in employment could potentially boost the country’s GDP by 30%.