The economic and digital landscapes of South Asia are on the verge of transformation, driven by the rapid advancement of artificial intelligence (AI) and increasing efforts to boost female labor force participation. These elements not only signify immense potential for productivity and growth but also highlight persisting challenges within the region.
According to reports, AI is poised to create significant economic opportunities across the Global South. A study by PwC predicts AI could contribute as much as $15.7 trillion to the global economy by 2030. Nations like Indonesia and India stand to benefit substantially from this technological wave, as both countries are now laying the groundwork for AI integration within various sectors.
On January 25, 2025, Indonesia and India formalized their commitment to AI collaboration by signing a Memorandum of Understanding (MoU). This historic agreement, witnessed by Indonesian President Prabowo Subianto and Indian Prime Minister Narendra Modi, serves to propel both countries toward innovation and digital transformation. The partnership aims to leverage AI to improve industries such as agriculture, finance, and public services, promising substantial social and economic progress.
One cornerstone of this cooperation is the collaboration between Indonesia’s Indosat Ooredoo Hutchison and India’s AIonOS, focusing on AI-driven solutions. Like many melding interests, this initiative intends not just to bolster the local economy but also to create job opportunities and empower underserved communities. Such advancements are particularly significant as South Asia's female workforce remains critically underrepresented, with over 400 million working-age women currently outside the labor force.
At the recent conference co-hosted by the Centre for Social and Economic Progress and the World Bank, experts identified numerous hurdles facing South Asian women. Safety concerns often keep them from pursuing employment outside the home, with rising incidents of workplace harassment shaping their reluctance. Reporting mechanisms for such incidents are frequently inadequate, leaving women vulnerable and fearful. “Deliberate switching of survey responses to protect the identity of those who report harassment can significantly increase the reporting of harassment,” indicating the pervasive issue at hand, especially within sectors such as garment manufacturing.
The necessity of fostering supportive networks also came to light. Many women lack the social capital required to discover job opportunities. Transformative technologies, especially digital platforms, possess the ability to bridge these gaps, as evidenced by increased job searches among Jordanian women with enhanced internet access. Initiatives promoting self-help groups among Indian women may similarly prove effective.
Wage growth disparities pose another significant barrier. An analysis revealed women's wage growth has been less than half of men’s, discouraging them from entering the workforce. This wage gap is particularly evident in India, where couples often make decisions about women's participation together, leading to diminished incentive for women to work.
Skill gaps remain prominent as well. Programs aimed at reskilling and capacity building have demonstrated success. For example, training initiatives for Bangladeshi garment workers help increase female participation levels and encourage promotion to higher positions. This is complemented by recent data showing significant growth of women’s labor force participation rates in India, rising from 21.6% to 35.6% from 2018-2024, albeit largely concentrated within unpaid or self-employed roles.
While these advances are promising, company policies reflecting hiring biases and existing social norms continue to inhibit progress. For example, women often encounter discriminatory hiring practices, and conservative social concepts associated with gender roles discourage engagement with the labor market. Encouragingly, the potential for societal change exists, as demonstrated by the successful transition witnessed among women exposed to liberal beliefs, leading to increased labor market engagement.
Bringing South Asian women's contribution to the labor market requires multifaceted efforts. Individual measures, such as enhanced workplace safety and supportive networks, are unlikely to yield significant changes without broader societal shifts. Comprehensive reforms akin to the experiences seen with parental leave policies in Sweden or labor market advancements across the U.S. may be needed to incite powerful momentum toward gender parity at work.
The collaboration between Indonesian and Indian AI sectors stands to illuminate pathways not just for economic gains but also for enhanced gender equity; as AI solutions are developed, they should prioritize inclusivity and cater to local contexts. The hope is to generate high-quality employment opportunities for women and establish models of success across the Global South.
Addressing South Asia’s economic and labor participation challenges demands strategic investments, innovative collaborations, and impactful changes. The path forward is undoubtedly complex, but as societies evolve and unite over shared objectives, substantial improvements may be within reach.