Home / Business and Economy / India's Jobs Deficit Holds Women Back, Not Just Norms
India's Jobs Deficit Holds Women Back, Not Just Norms
29 Jun
Summary
- Weak job demand, not just family attitudes, limits women's work.
- Boosting female participation could add $1.4 trillion to India's economy.
- Economic reforms are crucial for increasing women's workforce entry.
A new study by economists Shishir Gupta and Aalhya Sabharwal from the Centre for Social and Economic Progress (CSEP) suggests that India's low female labor force participation rate, currently at 35%, is significantly influenced by weak job demand, not solely by conservative family attitudes. The economy is failing to generate sufficient jobs for women.
The research indicates that if India matched Bangladesh's job creation intensity, women's participation could rise by 13 percentage points, surpassing gains from solely addressing social norms. The authors stress the need for demand-side reforms, including easing labor laws, restructuring tariffs to favor labor-intensive sectors, and investing in health and education.
Historically, female participation fell between 2004-05 and 2017-18, attributed to increased schooling and rising rural incomes. The recent recovery, however, is largely in low-paid sectors, potentially signaling distress. State-level participation varies greatly, reflecting differences in job creation and social norms.
Implementing these economic and structural reforms could unlock India's potential to add between $700 billion and $1.4 trillion to its GDP, aligning with the nation's ambition to become a developed country ('Viksit Bharat').
