India's Economic Survey for 2024-25 has unveiled a major shift in the country's workforce dynamics, highlighting the remarkable increase in female labour force participation. The Female Labour Force Participation Rate (FLFPR) has surged from 23.3% in 2017-18 to 41.7% as of 2023-24, primarily propelled by rural women's increasing participation.
This significant uptick is not merely statistical; it reflects changing socio-economic patterns across the country. A diverse range of factors has contributed to this shift, ranging from government initiatives aiming to promote women's employment and entrepreneurship to cultural changes embracing women's roles outside the household.
According to the survey, the FLFPR increase has seen the number of states where women's participation is burgeoning. Back in 2017-18, 20 states and Union Territories (UTs) reported FLFPRs below 20%. Now, only three fit this description, showcasing substantial progress.
Of 36 states and UTs, 21 have FLFPRs between 30% and 40%, with states like Sikkim leading at 56.9%. This marked geographical diversification provides evidence of women's shifting roles across India's economic framework.
"Women have been key beneficiaries of various initiatives aimed at fostering entrepreneurship,” the survey notes, shedding light on the favorable environment being created through government support. With over 73,151 startups listing at least one woman director as of October 31, 2024, the results are promising, indicating nearly half of the supported startups are led by women.
The boost from the government’s Startup India initiative is unmistakable. Investments through Alternative Investment Funds (AIFs) have funneled ₹3,107.11 crore to 149 women-led startups, demonstrating significant financial backing. The Startup India Seed Fund Scheme (SISFS) also saw approvals for ₹227.12 crore to 1,278 women-led startups.
Rural women, once at the periphery of economic activities, have made remarkable strides. The rural female labour force participation jumped from 24.6% to 47.6%, largely attributed to initiatives like the Deendayal Antyodaya Yojana – National Rural Livelihood Mission which has enhanced access to financial literacy and microloans.
Yet, challenges remain. Despite the significant strides, only 22% of micro, small, and medium enterprises (MSMEs) are owned by women—a figure decreasing sharply for larger enterprises: 12% for small and merely 7% for medium. Systemic barriers, such as limited access to credit and traditional gender norms, continue to loom large.
Even so, organizations like GAME (Global Alliance for Mass Entrepreneurship) are working to bridge the gap between women entrepreneurs and the growing digital economy, offering tools for e-commerce, financial inclusion, and the gig economy.
Surprisingly, India’s large industrial base still holds gender-based restrictions, as noted by the Economic Survey. The survey revealed 139 prohibitions imposed collectively by the 10 most populous states preventing women from engaging in certain factory processes based on unsubstantiated health concerns. "These prohibitions exclude women from high-paying jobs, making them counterproductive,” it concluded, urging for reforms.
India's female workforce, which has long played silent roles within traditional sectors, is now stepping boldly forward, especially within fields such as agriculture and manufacturing. For example, women account for over 80% of employment within the khadi sector and over 50% of those engaged in sericulture. These statistics highlight their managerial roles, often unrecognized, not merely as workers but as significant contributors to the economy.
With more conscious policies directed toward supporting working women, including addressing the gender pay gap and improving work-life balance through affordable childcare, women’s enhanced participation is likely to catalyze economic growth and stability.
The state's role becomes ever more significant as more women enter the workforce. Strengthening their position within this sphere is not merely beneficial but imperative for bolstering India's economy. The challenge going forward will be to see how much of the growing economic influence of women translates to genuine equality across sectors, culminating not merely in workforce growth but meaningful representation.
The rise of women’s contributions to the economy is not just about participation; it’s about leading innovation, creating roles, and reshaping societal norms. With the right commitments, government backing, and persistent efforts from the private sector, this transformation can lay the foundation for enhancing India’s economic resilience and paving the way for future generations.