Empowering Women for Sustainable Economic Growth
Mayuri
Feb, 2025
•10 min read
Why in News?
According to the latest Periodic Labour Force Survey data (2023-24), India's female labor force participation (FLFP) has seen notable growth, especially in rural areas. However, deeper analysis reveals that economic necessity, rather than empowerment, is driving significant participation, particularly among teenage girls and elderly women. This trend highlights the ongoing challenge of women empowerment in India, where economic factors often overshadow true empowerment.
Introduction
India’s female labor force participation (FLFP) has witnessed substantial growth in recent years, particularly in rural areas. As the country progresses toward achieving women empowerment in India, key challenges remain—especially the economic drivers behind women’s increased participation. The rising participation of teenage girls and elderly women, often due to economic necessity, highlights the deep-rooted structural barriers to women's development in India.
While government welfare programs and socio-economic changes are contributing positively, a more inclusive and gender-sensitive economic structure is still necessary to unlock the full potential of India’s female workforce. International conventions have also set a global framework for achieving women empowerment in India, yet the country faces challenges that require internal structural reforms.
Factors Driving India’s Improved Female Labor Force Participation
Reduced Household Drudgery through Welfare Schemes
- Government initiatives like the Ujjwala Yojana (providing free LPG connections) and Har Ghar Jal (tap water supply to rural households) have significantly reduced women's domestic burdens.
- This reduction in time spent on fetching water and firewood has enabled women to participate more actively in agriculture and allied activities, contributing to women's development in India.
- The number of refills taken under Ujjwala Yojana increased from 159.9 million (2018-19) to 344.8 million (2022-23), while 78% of rural homes had access to tap water under the Jal Jeevan Mission by October 2024, which alleviates household drudgery for women, fostering empowerment.
Increased Employment under Government Schemes
- Women have benefited from wage employment programs like MGNREGA, which offer local employment opportunities with equal wages for men and women.
- In 2021-22, women constituted 54.54% of the MGNREGA workforce, according to the Ministry of Rural Development. This has directly contributed to women empowerment in India.
- Initiatives like the National Rural Livelihood Mission (NRLM) have empowered over 9.89 crore women through self-help groups (SHGs), helping them engage in micro-enterprises and financial activities, fostering the concept of women's development in India.
Declining Fertility Rates and Smaller Families
- India’s fertility rate has declined to 2.0, according to NFHS-5 (2021), reducing the burden of child-rearing on women. This shift has allowed women to engage in paid work, contributing to their empowerment.
- Smaller family sizes, particularly in urban areas, have enabled more women to enter the workforce and focus on career development.
- This demographic shift is reflected in the increasing FLFP in younger age groups (20-35 years) in urban areas, as per PLFS 2023-24.
Improved Literacy and Education Levels
- Female literacy rates have improved over the years, which enhances women's employability and ability to participate in the workforce.
- Programs like Beti Bachao Beti Padhao and Samagra Shiksha Abhiyan have played a key role in boosting literacy. As of 2024, female literacy stands at 77%.
- Skill development initiatives like Skill India Mission and Digital Saksharta Abhiyan equip women with digital skills and vocational training, opening doors to emerging fields such as e-commerce and gig work, furthering women empowerment in India.
Shift Towards Self-Employment and Entrepreneurship
- Women are increasingly entering self-employment, supported by financial inclusion programs like PM Jan Dhan Yojana (PMJDY) and Stand-Up India Scheme.
- 55% of PM Jan Dhan account holders are women, ensuring access to formal banking and credit, fostering greater women's development in India.
- As of March 2023, ₹40,710 crore in loans was sanctioned under the Stand-Up India scheme, with 80% allocated to women entrepreneurs, fostering economic independence and contributing to women empowerment in India.
Technology and Digitization as Enablers
- The rise of digital platforms and internet access has provided new opportunities for women in gig and remote work.
- Platforms like Amazon Saheli and Mahila E-Haat have empowered women to sell products and services from home, contributing significantly to women's development in India.
- Rural India now accounts for 53% of internet consumption, helping more women, especially in rural areas, join the workforce while overcoming mobility challenges, in line with international conventions on women empowerment in India.
Supportive Legal Frameworks
- Progressive legal measures such as the Maternity Benefit (Amendment) Act, 2017 (providing 26 weeks of paid maternity leave) and POSH Act, 2013, have created a more supportive environment for women in the workforce, fostering women empowerment in India.
- The passage of the Women Reservation Act, 2023, is another important step towards improving women's representation and opportunities in both the public and private sectors, aligning with international conventions on gender equality.
Rising Role of Self-Help Groups (SHGs)
- SHGs under the Ministry of Rural Development's Deendayal Antyodaya Yojana-National Rural Livelihoods Mission (DAY-NRLM) have played a significant role in empowering women by providing access to credit, skills development, and collective bargaining.
- As of February 2024, SHGs had mobilized over ₹1.7 lakh crore in loans for women-led enterprises. States like Tamil Nadu and Kerala, where SHGs are active, report higher FLFP rates compared to the national average, contributing to women's development in India.
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Structural Challenges in India’s Female Labor Force Participation
Gendered Social Norms and Cultural Constraints
- Despite progress, traditional social norms in many parts of India restrict women to domestic roles, limiting their access to opportunities. These norms act as barriers to women empowerment in India.
- Societal expectations for women to prioritize caregiving and household responsibilities continue to constrain their participation in paid employment.
- India ranks 127th out of 146 countries in terms of economic participation, as per the Global Gender Gap Report 2023, reflecting deep-rooted gender biases.
Inadequate Access to Quality Education and Skill Training
- Many women lack access to higher education and vocational training, creating a mismatch between their skills and the needs of emerging job markets.
- Female literacy and enrollment in STEM fields remain low, limiting women’s employability in high-growth sectors like IT and manufacturing, posing a challenge for women's development in India.
- In 2022-23, only 18.6% of women aged 18-59 received vocational training, with just 7% of trainees in 2021 being women, despite 17% of ITIs being women-only.
Unpaid Care Work Burden
- Women bear a disproportionate burden of unpaid care work, including childcare, eldercare, and household chores, which leaves little time for paid work. This continues to be a significant barrier to women empowerment in India.
- According to NFHS (2019-21), about 85% of women aged 15-59 engage in unpaid domestic work, a trend that is consistent in both urban and rural areas.
- This inequality limits women's ability to access full-time, paid employment.
Structural Informality and Gender Wage Gap
- A significant portion of women in India’s workforce are in informal, low-paying jobs, such as agriculture and garment manufacturing, where social security and decent working conditions are lacking, hindering women's development in India.
- Over 90% of women workers are in the informal sector, according to the Economic Survey 2023.
- The World Inequality Report 2022 estimates that men earn 82% of the labor income in India, while women earn only 18%, highlighting the persistent gender wage gap.
Weak Implementation of Gender-Sensitive Workplace Policies
- Despite progressive policies like the Maternity Benefit Act and POSH Act, enforcement remains weak, particularly in smaller enterprises and informal sectors, undermining women empowerment in India.
- A 2024 report revealed that 93.5% of women workers in India do not have access to maternity benefits, discouraging women from remaining in the workforce post-childbirth.
Persisting Security Concerns
- Rising crime rates and inadequate safety infrastructure discourage women from traveling for work, particularly in urban areas, hindering women's development in India.
- The National Crime Records Bureau (2022) reported a 12.9% rise in crimes against women from 2018 to 2022, further exacerbating women’s mobility and employment prospects.
Economic Necessity Driving Constrained Choices
- While women’s participation in rural areas has increased, especially in agriculture, this rise often stems from necessity rather than empowerment.
- The PLFS (2023-24) reveals that elderly women and teenage girls are entering the workforce due to economic vulnerability, rather than personal agency.
Limited Representation in Leadership Roles
- Women continue to face significant barriers in breaking the "glass ceiling" in leadership roles. This impacts women's development in India by limiting opportunities for women in decision-making positions.
- As of April 2024, women occupy only 14.7% of legislative seats in India, and only 18.3% of senior leadership roles in corporate India, reflecting persistent gender disparities.
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Strengthening Women’s Economic Participation: Key Strategies
Skill Development & Digital Inclusion
- Launch gender-focused skill programs in high-growth sectors like IT, renewable energy, healthcare, textiles, and handicrafts under Skill India.
- Expand digital literacy initiatives under Digital India, ensuring rural women access STEM training, subsidized smartphones, and internet connectivity.
- Scale up platforms like Mahila E-Haat and Amazon Saheli to connect women entrepreneurs with larger markets.
Financial Empowerment & Entrepreneurship
- Strengthen PM Jan Dhan Yojana and Mudra Yojana for seamless credit access to women-led businesses.
- Integrate financial literacy under NRLM to empower SHGs and simplify loan processes with mentorship support.
- Ensure convergence with Stand-Up India to boost women’s role as job creators.
Gender-Responsive Infrastructure & Safety
- Invest in safe public transport, sanitation, and well-lit roads, particularly in rural and urban peripheries.
- Expand Safe City Projects and integrate gender-sensitive infrastructure under the Smart Cities Mission.
- Develop affordable elder care and childcare centers through public-private partnerships, enabling women’s workforce participation.
Workplace Gender Equality & Leadership
- Strengthen flexible work policies, paid maternity leave, and anti-harassment measures under the POSH Act, 2013.
- Promote hybrid and remote work to retain women post-childbirth.
- Encourage private firms to adopt diversity benchmarks with at least 30% women in leadership roles under Mission Shakti.
Social Protection & Economic Security
- Ensure universal healthcare, pensions, and unemployment benefits for working women.
- Strengthen PM Jeevan Jyoti Bima Yojana and PM Shram Yogi Maandhan Yojana for informal women workers.
- Introduce conditional cash transfers linked to workforce participation to incentivize economic activity.
Region-Specific Interventions for Higher FLFP
- Address low Female Labor Force Participation (FLFP) in northern states (e.g., Haryana, Uttar Pradesh) with targeted campaigns on gender sensitization, vocational training, and transport access.
- Bridge regional disparities through collaboration between states and central programs like Beti Bachao Beti Padhao.
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Conclusion
India’s rising Female Labor Force Participation (FLFP) signals progress, but true empowerment requires moving beyond economic necessity to structural reforms. Addressing gendered social norms, education gaps, and unpaid care work is crucial. A multi-pronged approach—enhancing skill development, workplace policies, and safety infrastructure—can drive lasting change. Empowering women isn’t just a social imperative; it’s an economic necessity for India’s sustainable and inclusive growth.
Frequently Asked Questions (FAQs)
What is meant by Labour Force Participation Rate (LFPR)?
LFPR refers to the percentage of the working-age population (15 years and above) that is either employed or actively seeking work. It is a key indicator of labor market engagement.
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What is the National Family Health Survey (NFHS)?
NFHS is a large-scale, multi-round survey conducted by the Ministry of Health and Family Welfare that provides vital data on health, nutrition, fertility, and socio-economic indicators, including women’s workforce participation.
What is meant by PLFS?
The Periodic Labour Force Survey (PLFS), conducted by the NSO (National Statistical Office), provides quarterly and annual estimates of employment-unemployment trends, including Female Labor Force Participation (FLFP) in rural and urban India.
What is Amartya Sen’s Capability Approach and its link to women’s empowerment?
Amartya Sen's Capability Approach emphasizes expanding individuals' real freedoms and choices rather than just economic growth. For women, this means access to education, healthcare, economic opportunities, and social freedoms, enabling them to participate fully in the workforce and society.
What is Claudia Goldin’s work on women's economic participation?
Claudia Goldin, awarded the 2023 Nobel Prize in Economics, studied the historical evolution of women’s workforce participation, highlighting how education, social norms, and family structures influence economic engagement. Her work underscores the non-linear relationship between economic development and gender equality in labor markets.
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Mains PYQs
- Is inclusive growth possible under market economy? State the significance of financial
inclusion in achieving economic growth in India (2022/10M). - “Economic growth in the recent past has been led by increase in labour productivity.”
Explain this statement. Suggest the growth pattern that will lead to creation of more jobs
without compromising labour productivity (2022/15M).
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