Dr Praveen Kumari Singh, currently serving as adviser in the ministry of labour and employment, describes the challenges, trends and road ahead for women’s labour force participation in India.
Female participation in the workforce is an economic and social imperative that not only contributes empirically to a country’s GDP, but also strengthens familial and communal structures. A 2018 World Bank report highlighted that women in India contribute approximately 17 per cent to the nation’s GDP, while the global average is around 37 per cent. It further says that India could boost its growth by 1.5 percentage points to 9 per cent per year if around 50 per cent of women could join the workforce. A McKinsey Global Institute (MGI) study on the issue also says that advancing women’s equality could lead to a $28 trillion increase in the global GDP. The International Labour Organisation (ILO) estimates India’s female labour force participation rate (FLFPR) at 41.7 per cent, reflecting a notable increase from 23.3 per cent in 2017-18, though it is still below the global average of 48.7 per cent.
A closer look at the urban-rural divide highlights that rural FLFPR has increased from 24.6 per cent in 2017-18 to 41.5 per cent in 2022-23, while urban participation experienced a relatively modest increase from 20.4 per cent to 25.4 per cent in the same period. Women’s employment is influenced by various factors such as age, education level, socio-economic-cultural conditions and perception of women’s capability, leading to different levels of participation. The nature of employment also plays a crucial role in shaping the workforce dynamics, with a significant proportion of women engaged in informal employment. Only about 19 per cent of working women hold regular salaried jobs, highlighting the precarious nature of female employment in India.
The sectoral analysis of women’s workforce participation in India over the past years highlights substantial shifts. Agriculture continues to employ a major proportion of rural women, accounting for 44.7 per cent of the agricultural workforce. In the manufacturing sector, women make up 21.4 per cent of the workforce, primarily employed in textile, apparel, and food processing industries, often in low-wage, labour-intensive roles. The education sector, a major employer for women, sees female representation at 44.1 per cent. Similarly, health care employs 40 per cent of women workers, primarily as nurses, doctors, and allied health professionals, although they remain under-represented in senior and specialist roles.
As per the recent CII Sectoral Report, the IT and BPO sectors, a growing field for women’s employment, account for 31.8 per cent of female employees, with increasing participation in customer support, content moderation, and technical fields. In financial services, women constitute 34.4 per cent of the workforce, engaging in banking, insurance, accounting, and financial analysis, with growing opportunities in fintech. The trade and commerce sector employs 21.4 per cent of women, often in retail, wholesale, distribution, and supply chain roles, but mostly in informal settings. Women remain under-represented in transport (15.09 per cent), construction (22.5 per cent), and accommodation and food services (23.1 per cent). Self-employment remains a crucial avenue for women, with 19.7 per cent engaged in micro-enterprises, cottage industries, and small-scale businesses. Casual labour and domestic work employ 6.8 per cent of women, often in precarious conditions without job security or social benefits, while only 5.3 per cent of women hold regular wage or salaried positions, highlighting the urgent need for policy measures to formalise employment opportunities. The e-Shram portal, introduced in 2021, aims to provide social security coverage to unorganised sector workers, with 53 per cent of its registered users being women.
Opportunities for increasing women’s labour force participation exist in several emerging sectors, like in technology and STEM fields. Manufacturing, particularly under the Make in India and Production-Linked Incentive (PLI) schemes, is expected to create jobs for women in high-value sectors like electronics, textiles, and pharmaceuticals. The gig economy and remote work models provide flexibility, enabling more women to participate in freelance, e-commerce, and digital services. Financial services, especially fintech, present growing opportunities for women’s workforce integration. The rise of electric mobility and renewable energy sectors is also expected to generate employment, particularly in sustainability consulting and green technology roles.
The government has implemented various initiatives to boost female labour force participation, including Mission Shakti, which focuses on women’s safety and economic empowerment; the Maternity Benefit (Amendment) Act, which extends maternity leave to 26 weeks; and the Skill India Mission, which offers vocational training to enhance employability. The Women Entrepreneurship Platform (WEP) and the Self-Employed Women’s Association (SEWA) have also played crucial roles in promoting female entrepreneurship and informal sector participation.
Several structural and cultural challenges hinder women’s participation in the workforce. Socio-cultural norms and patriarchal mindsets continue to impose restrictions on women’s employment choices, particularly in traditional households. Unpaid care work remains a major burden, as women spend nearly eight times more time than men on household responsibilities, limiting their ability to engage in full-time employment. The lack of accessible childcare facilities further hampers women’s workforce participation, with only 11 per cent of approved childcare centres under the Palna Scheme currently functional. Safety concerns and mobility issues also deter women from seeking employment opportunities. Gender discrimination and wage gaps persist.
Increasing women’s labour force participation is not just a social justice issue, but an economic necessity and requires a multi-pronged approach. Nordic countries like Sweden, Norway, and Finland boast FLFPRs exceeding 70 per cent, which is largely attributed to progressive labour policies, gender-equal pay structures, and extensive childcare support. Even among developing economies, China (61 per cent) and Brazil (54 per cent) fare better, owing to urbanisation, strong legal frameworks and greater female inclusion in industrial and manufacturing sectors. Future strategies therefore must focus on expanding social security coverage, investing in care infrastructure, ensuring workplace safety, promoting flexible work policies, promoting STEM education for girls, supporting women’s entrepreneurship and fostering an inclusive work culture.
“Women’s economic empowerment is highly connected with poverty reduction as women also tend to invest more of their earnings in their children and communities,” said Annette Dixon, World Bank South Asia Vice President. Women’s labour force participation is not without its significant fluctuations caused by a combination of economic, social, and structural challenges, but India can unlock the full potential of its female workforce and drive long-term economic growth in alignment with the vision of a Viksit Bharat and $30 trillion economy by 2047. To realise this vision, it is essential to accelerate inclusive policies, break socio-cultural barriers, and create an equitable workforce environment.