Among the major world economies, India has lowest participation in Female Labour Force. As per the data published in 2023, only 25% of the working age women are actively involved in labour force, compared to nearly 75% of men. The data represents a significant gender gap in the workforce participation.
Various factors affecting the Female Labour Force participation include social and cultural factors like traditional gender roles, family responsibilities, marriage and household duties, safety concerns and many more. Certain economic factors like limited access to quality education, wage discrimination, informal nature of work, limited access to financial resources and credit also adds to the current situation. Structural barriers like limited flexible work arrangements, poor transportation facilities, inadequate child care infrastructure and maternity benefits in informal sectors also plays a major role.
Budget 2025 plans to bring in more Female Labour Force participation rate in the country. Government plans to introduce incentives and measures to boost Female Labour Force participation. Various measures including flexible working hours and enhancing the infrastructure support are under discussion. A special task force headed by labour secretary has been assigned duty to submit report to guide this initiative. It aims to bring in gender parity and enhance the GDP contribution.
According to the survey done by the National Family Health Survey, Indian Female Labour Force contribute 18% to GDP, despite constituting 48 % of the population. Experts believe that bridging the gender gap in labour force can potentially enhance a 30% increase in the country’s GDP.