THE CONTEXT: According to the Periodic Labour Force Survey (PLFS), India’s female labor force participation rate (FLFPR) has improved markedly in recent years, increasing from 23.3% in 2017-18 to 41.7% in 2023-24. India still lags global averages (53%) and regional peers like Bangladesh (57%) and China (69%).
KEY STATISTICS:
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- Rural Dominance: Women’s participation surged from 24.6% to 47.6% between 2017-18 and 2023-24, driven largely by self-employment and agricultural work.
- Self-Employment Rise: Over 67% of working women are now self-employed, up from 51.9% in 2017-18. However, this often involves low-paying or unpaid work in family enterprises.
- Decline in Salaried Jobs: The share of women in regular salaried jobs fell to a seven-year low of 15.9% in 2023-24, reflecting limited access to quality employment opportunities.
THE CHALLENGES:
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- Gender-Based Wage Disparity: The average monthly income for women stands at ₹8,034, compared to ₹12,048 for men—a 33% wage gap. This disparity is exacerbated by occupational segregation and undervaluation of women’s work.
- Unpaid Work Burden: Women spend an average of 352 minutes daily on unpaid domestic and caregiving tasks, compared to just 52 minutes by men. This limits their ability to engage in paid employment and perpetuates patriarchal norms that prioritize caregiving roles for women.
- Educational and Skill Gaps: While female literacy improved from 59.28% (2011) to 69% (2021), it remains significantly lower than in countries like Sri Lanka, China, and South Africa (all above 90%). Moreover, only 12.3% of women aged 15-59 received vocational training in 2021-22, compared to 26% of men.
- Structural Barriers: Cultural norms, lack of childcare facilities, unsafe workplaces, and limited access to transport continue to restrict women’s workforce participation. For instance, the absence of hostels for women in Industrial Training Institutes (ITIs) has been cited as a major deterrent to their enrollment.
ECONOMIC IMPLICATIONS:
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- Demographic Dividend: India is experiencing a demographic dividend with its largest working-age population (15-34 years). However, the underutilization of women’s potential impedes economic growth. A report by Bain & Company estimates that adding 145 million women to the workforce by 2047 could boost India’s GDP by $14 trillion and help achieve its $30 trillion economy target.
- U-Shaped Curve Phenomenon: Globally, female labor supply follows a U-shaped curve with economic growth—initially declining but later increasing as economies mature. However, despite consistent GDP growth, India has not realized this upward trend, indicating that economic expansion has not translated into adequate job creation for women.
GOVERNMENT INITIATIVES:
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- Education and Skill Development: Programs like Beti Bachao-Beti Padhao, Sarva Shiksha Abhiyan, and the National Education Policy (NEP) 2020 emphasize gender inclusion in education. The CBSE’s “Udaan Scheme” promotes STEM education for girls. Under the Pradhan Mantri Kaushal Vikas Yojana (PMKVY), the proportion of women trained increased from 42.7% in FY16 to 52.3% in FY24.
- Financial Inclusion: The Pradhan Mantri MUDRA Yojana has disbursed nearly 70% of its loans to women entrepreneurs. Over 29 crore women have been brought into the banking system through the Jan Dhan Yojana, facilitating financial independence. Stand-Up India Scheme supports women entrepreneurs by providing loans between ₹10 lakh and ₹1 crore for Greenfield enterprises. Provisions under the Minimum Wages Act, 1948 ensure gender-neutral wage policies.
- Employment Support: The Union Budget for FY24 allocated over ₹3 lakh crore for women-centric schemes, including childcare facilities and skilling programs. Initiatives like the E4 Model (rural entrepreneurship) and PROGRES Model (urban job readiness) focus on creating sustainable livelihoods for women. National Career Service connects job seekers with employers. It includes a repository of career content explicitly targeting women’s employability
- Workplace Safety and Legal Reforms: Increased paid maternity leave from 12 to 26 weeks. Mandates crèche facilities in establishments with over 50 employees. Advisory under the Factories Act of 1948 permits women to work night shifts with adequate safety measures. POSH Act, 2013 ensures protection against sexual harassment at workplaces.
THE WAY FORWARD:
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- Strengthening Education and Skill Development: Expand vocational training programs, focusing on emerging sectors like IT, healthcare, and e-commerce. Encourage STEM education through schemes like Udaan, ensuring higher enrollment of women in technical fields.
- Addressing Unpaid Work and Promoting Work-Life Balance: Introduce tax incentives for companies offering flexible work arrangements and childcare facilities. Promote shared caregiving responsibilities through awareness campaigns targeting patriarchal norms.
- Enhancing Employment Opportunities and Wage Equality: Laws like the Equal Remuneration Act of 1976 mandate equal pay for equal work but lack effective enforcement. After the Hindu Succession (Amendment) Act of 2005, more women began owning agricultural land, showcasing how legal reforms can empower women economically. Conduct gender audits of workplaces to ensure compliance with wage equality laws.
- Improving Workplace Safety and Inclusivity: Strengthen enforcement of the POSH Act through regular audits and penalties for non-compliance. Provide subsidies for companies investing in workplace safety measures like transport facilities and CCTV surveillance.
- Leveraging Technology and Digital Platforms: Expand digital literacy programs targeting rural women. Create a National Women Entrepreneur Platform to connect female entrepreneurs with markets, mentors, and investors.
- Policy Convergence and Multi-Stakeholder Collaboration: Establish a National Gender Data Repository to monitor progress across sectors. Create incentives for businesses that achieve gender parity across all employment levels.
THE CONCLUSION:
Education is the foundation for economic empowerment. The correlation between education and workforce participation is evident in states like Kerala and Tamil Nadu, where higher female literacy rates align with greater workforce participation. Increasing women’s workforce participation is both an economic imperative and a step toward gender equality.
UPSC PAST YEAR QUESTION:
Q. Examine the role of ‘Gig Economy’ in the process of empowerment of women in India. 2021
MAINS PRACTICE QUESTION:
Q. The U-shaped relationship between female labor force participation and economic growth observed in many developed countries has not materialized in India. Examine
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