2 days ago
Expanding women's workforce key to unlocking India's economic growth, says EAC-PM head Dev
New Delhi: The Indian economy could see a significant boost if more women are brought into the formal or informal sectors, according to S. Mahendra Dev, Chairman of the Economic Advisory Council to the Prime Minister (EAC-PM). Citing official data and economic studies, Dev said raising the female worker population ratio (WPR) is not just about equity, it is a growth imperative.
'Women's participation in the labour market is essential to achieve faster economic growth, as it has the potential to improve both growth and inclusive growth," Dev said in an interview.
The council's chairman said the government is actively working to improve the share of employed women in the population through a multi-pronged strategy that included education, skills training, entrepreneurship support, childcare access, better transport and flexible work options.
'The role of women in all activities of the economy and society has been increasing in India, although the shares of women in some activities are low," Dev said, quoting official figures. Government policies should encourage women's participation in all the sectors of the economy: agriculture, industry and services, he added.
According to the Periodic Labour Force Survey annual report 2023-24, worker population ratio for females above 15 years has risen to 40.3% in 2023-24 (July-June) from 22% in 2017-18.
The legislation that seeks to allocate 33% seats for women in Lok Sabha and State Legislative Assemblies will also yield positive outcomes for women's empowerment in future, Dev said. "This law will now enable greater participation of women in policymaking and equitable governance at the state and national levels," he added.
The Constitution (One Hundred and Sixth Amendment) Act, 2023, provides that reservation of seats for women in the Lok Sabha, state legislative assemblies, including that of the National Capital Territory of Delhi, will come into effect after a delimitation exercise is held after a population census.
Dev said the government is following a multi-pronged approach—focusing on education, skill development, entrepreneurship, flexible work arrangements, improved childcare and transportation—to improve the worker population ratio for females.
'India could improve GDP significantly by raising the WPR for Economic Survey 2023-24 highlighted the systemic barriers that impede job opportunities for women," he said. "It says in order to sustain and enhance women's participation in the workforce, it is essential to remove restrictions on women working in certain occupations. This responsibility mostly lies with the state governments."
While the worker population ratio of females has improved over the years, there is still a lot of ground to cover to achieve gender equality.
According to statistics ministry's data, worker population ratio among men above 15 years of age is 76.3%. In scheduled commercial banks, only about one-fourth of the staff are women as of March 2024, as per another report from the statistics ministry, titled 'Women & Men in India 2024'.
As per this report, declining fertility rate and improvement in education is aiding the rise in working women. Meghalaya, Sikkim and Himachal Pradesh are the front-runners in female labour force participation—the share of working or work-seeking women in the population, while Lakshadweep, Delhi and Haryana are the laggards.
The report also pointed out the improvement in gender diversity in business ownership, especially in the services sector, where the trend is stronger than in manufacturing and trading.
'There is a lot of focus on women entrepreneurs in India. Women-owned enterprises can improve WPR and boost economic growth. There are government schemes to improve women's entrepreneurship. Certain flagship schemes of the government of India, such as Pradhan Mantri Mudra Yojana, Deendayal Antyodaya Yojana—National Rural Livelihoods Mission, etc. are oriented towards promoting women-led enterprises. This increases direct and indirect employment for women. Skill development and technology can also help raising women's employment," said Dev.
'There is also need for raising share of women in company boards," Dev said. As per data available from the ministry of corporate affairs, only about one-third of the professionals who secured director identification numbers (DINs) in June for board positions in companies are women.
The International Monetary Fund (IMF) indicates that women's economic empowerment and the closing of gender gaps in key areas is associated with positive macroeconomic outcomes, including higher economic growth, lower inequality, increased productivity, better financial sector outcomes, and greater financial stability, the council's chairman said.
