Role of Women in India’s Growth Story

This editorial is based on “Closing the gender gap: India still has miles to go in growth story” which was published in The Business Standard on 10/05/2025. The article brings into focus the sharp rise in women’s workforce participation to 41.7%, yet highlights persistent gender gaps in unpaid domestic work, political representation, and societal attitudes that hinder their full economic potential.

For Prelims: Female labor force participation, STEM, National Rural Livelihood Mission. Stand-Up India, Pradhan Mantri Awas Yojana-G,  Common Service Centres , Gig economy, SANKALP, PMGDISHA .  

For Mains: Care Economy, Key Factors Driving Women's Active Participation in India's Economic Transformation, Key Issues Hindering Women Empowerment in India. 

While India has seen a significant rise in female labor force participation from 23.2% to 41.7% over 6 years, it still lags behind the male rate of 77.2% and global average of 50%. Women continue to shoulder disproportionate unpaid domestic work , creating a dual burden despite increasing workforce participation. Though female entrepreneurship and financial inclusion are growing, political representation remains low with just 13.6% women in the 18th Lok Sabha. India must urgently address structural inequalities, safety concerns, and societal perceptions to unlock women's full economic potential and accelerate national growth.

What are the Key Factors Driving Women's Active Participation in India's Economic Transformation?  

• Educational Advancements and STEM Inclusion: The rising educational attainment among women has been pivotal in expanding their presence across skilled sectors. 
  • Women are increasingly entering STEM fields, defying traditional stereotypes and gaining access to high-paying, innovation-driven jobs.  
    • This has created a virtuous cycle of aspirations, skill-building, and workforce readiness.  
  • Access to digital education platforms and scholarships has democratized opportunities across rural and urban areas. 
  • For instance, Female enrolment in higher education rose to 2.07 crore in 2021-22, making up nearly 50% of total enrolment. 
    • Women constitute 42.57% of STEM students (AISHE, 2022). 
• Policy Push for Women-Led Development: A deliberate shift from women’s welfare to women-led development is reflected in policies across ministries.  
  • Initiatives are designed not just to include women, but to enable them as leaders, entrepreneurs, and decision-makers. These policies are increasingly intersectional, targeting rural, tribal, and underrepresented communities. Inter-ministerial coordination has begun to tackle systemic challenges more cohesively. 
  • For instance, 10 crore women connected to 9 million SHGs under National Rural Livelihood Mission. 84% of Stand-Up India loans go to women (PIB, 2024). 
    • Under Pradhan Mantri Awas Yojana-G, it has been decided that the allotment of a house shall be made in the name of the woman or jointly in the name of the husband and wife. 
• Rise of Women Entrepreneurship and Start-up Culture: Women are transforming from job-seekers to job-creators, actively shaping India’s start-up ecosystem.  
  • Digital platforms, financial inclusion, and mentorship have enabled women to scale up their ventures.  
  • Visibility of women entrepreneurs is challenging gender norms and inspiring others. The ecosystem is now more gender-aware, promoting inclusive innovation. 
  • For instance, Falguni Nayar’s Nykaa, Shradha Sharma’s YourStory, and Upasana Taku’s MobiKwik reflect this trend. 
    • Over 10% of SIDBI fund is now earmarked for women-led start-ups (SIDBI, 2024). 
• Financial and Digital Inclusion: Access to formal banking and digital financial tools has significantly empowered women economically.  
  • With financial control, women are more confident to make business and household decisions. The rise of digital banking, Aadhaar-linked services, and mobile wallets has reduced dependency and improved economic agency. Fintech has become a gateway to broader participation in the economy. 
  • For instance, 39.2% of bank accounts and 39.7% of deposits are now held by women (MoSPI, 2024). The number of female-owned demat accounts tripled between 2021 and 2024. 
  • Also, Economic inclusion is now seen as a community effort. Bank Sakhis model processed transactions worth $40 million (2020) 
• Legal and Institutional Reforms: Robust legal backing has improved workplace safety, encouraged workforce retention, and addressed gender-based violence.  
  • Fast-track courts, one-stop centres, and workplace laws give women institutional assurance. Protection against sexual harassment and stronger maternity benefits reduce dropouts.  
  • These measures are vital for long-term gender parity in labour force participation 
  • For instance, 750 Fast Track Courts, 802 One Stop Centres functional; more than 14,000 Women Help Desks in Police Stations (Ministry of WCD, 2024). 
• Technological Penetration and Remote Work Opportunities: Digital transformation has enabled remote work, allowing women to balance professional roles with domestic responsibilities.  
  • The gig economy and platform-based jobs have opened new avenues in flexible employment. This helps overcome traditional mobility and time-related constraints.  
  • Women now access national and global labour markets from their homes. 
  • For instance, Common Service Centres are run by 67,000 women entrepreneurs.  
• Changing Social Norms and Role Models: Increased visibility of successful women in diverse fields is reshaping societal attitudes.  
  • From defence forces to boardrooms, women leaders inspire younger generations and normalize ambition.  
  • For instance, 15% of Indian pilots are women—3x the global average. In 2023, Commander Prerna Deosthalee became the first woman officer of the Indian Navy to command the Indian Naval Warship. 
    • Justice BV Nagaratna is likely to become India's first woman Chief Justice. 

What are the Key Issues Hindering Women Empowerment in India? 

• Persistently Low Female Labour Force Participation: Despite recent improvements, India's FLFPR remains lower than the global average of 50%.  
  • Societal norms, lack of flexible jobs, and care responsibilities restrict women’s active economic engagement.  
  • Many women drop out post-marriage or childbirth, and re-entry remains difficult due to the absence of enabling work environments. 
  • For instance, Female LFPR rose from 23.3% (2017-18) to 41.7% (2023-24), but still trails behind men at 77.2% and below the global female average of 50% (MoSPI, 2024; World Bank). 
• Unpaid Care Work and Domestic Burden: Women disproportionately shoulder unpaid domestic work, which remains invisible in official economic metrics.  
  • This dual burden limits time for education, skilling, or formal employment. Household responsibilities are still seen as a woman’s duty, reinforcing gender roles.  
  • Men’s participation in domestic duties remains abysmally low, indicating slow social change. 
  • For instance, Time Use Survey shows women spend 236 mins/day on unpaid domestic services, vs 24 mins/day by men. 
• Gender Pay Gap and Informalisation: Even when women work, they face pay disparities, especially in informal and rural sectors.  
  • Many are engaged in low-paying, insecure, informal jobs without social security. The wage gap discourages long-term workforce retention and reduces incentives for women to upskill.  
  • For instance, men earn 29.4% more than women in urban areas, while they earn 51.3% more in rural areas. Around 81% of women work in informal sectors (NSSO, 2023). 
• Gender-Based Violence and Safety Concerns: Safety fears in public and private spaces severely restrict women’s mobility, employment, and education opportunities. 
  • Gender-based violence (GBV) leads to psychological and economic disempowerment. 
  • Lack of swift justice, poor implementation of laws, and under-reporting further worsen the situation. 
  • For instance, India records 51 cases of crime against women every hour; over 4.4 lakh cases in 2022: NCRB report. 
    • The NFHS-5 (2019-2021) survey reports that 29.3% of married women aged 18-49 have experienced spousal violence 
• Underrepresentation in Political and Leadership Roles: Despite numerical gains at grassroots levels, women remain underrepresented in decision-making at higher echelons.  
  • The lack of women in Parliament (implementation of women reservation bill is pending until next delimitation exercise ) and corporate boards reduce gender-responsive policymaking. Reservation in panchayats has not yet translated to proportionate power at national or state levels. 
  • For instance, only 13.6% of 18th Lok Sabha members are women. Also, women account for only 17.6% of directorships of the Nifty-500 companies. 
    • Women do not only face the persistence of the glass ceiling (invisible barriers preventing women from rising to top leadership) but also instances of the glass cliff, where they are more likely to be appointed to leadership roles during times of crisis, making success harder to achieve. 
• Digital Divide and Tech-Access Inequality: While digital literacy is rising, women’s access to digital tools, especially in rural India, is limited.  
  • Gendered access to phones, internet, and digital finance particularly in rural areas prevents them from leveraging digital platforms for education, jobs, or entrepreneurship.  
  • This reinforces the cycle of exclusion. For instance, only 33% of rural women use the internet vs 57% of men. Female ownership of mobile phones is still ~54% (NFHS-5, 2021). 
• Poor Workplace Infrastructure and Support: Lack of gender-sensitive infrastructure (e.g., sanitation, crèches, transport) discourages women from joining or staying in the workforce.  
  • Without enough maternity benefits, paid leave, or flexible work hours, women find it difficult to balance work and life. Many drop out due to caregiving roles. 
  • For instance, 1 in 4 working women had to choose between childcare and career due to poor flexible policies. 
    • Also, 37% of organisations in India still do not provide maternity leave benefits and only 17.5% provide childcare facilities.  

What Measures can India Adopt to Further Mainstream Women in Economic Growth? 

• Integrate Skilling with Local Economic Ecosystems: Align women’s skilling programs under Skill India, PMKVY, and SANKALP with local economic demands and emerging sectors like green jobs, healthcare, and digital services.  
  • Training should be demand-driven and supported by post-training linkages like placement cells, SHG federations (e.g., Kerala's Kudumbashree), and entrepreneurship hubs.  
  • Embed vocational education in secondary schools for early exposure. Create district-level Gender-Smart Skill Plans under District Skill Committees.  
    • This approach ensures skilling leads to real, sustainable economic opportunities. 
• Scale Women’s Enterprise through Converged Finance Models: Link MUDRA loans, Stand-Up India, and Women Entrepreneurship Fund under a converged credit access model to support nano and micro-enterprises.  
  • Handhold women entrepreneurs with business development services, digital onboarding, and market linkages via platforms like GeM.  
  • SHGs can be transformed into incubators for local women-led businesses.  
  • Introduce joint liability and peer mentorship models to reduce credit risk. This will mainstream entrepreneurship as a viable livelihood option for women. 
• Institutionalise Childcare and Care Economy Support: Develop a National Crèche Grid under Samarthya and ICDS, integrating Anganwadis and workplace-based crèches to support working mothers.  
  • Encourage PPP models to create employer-sponsored childcare facilities. 
  • Recognise and professionalise care workers through formal skilling and wage mechanisms.  
  • Expand paid maternity leave to the informal sector through a portable care benefit framework.  
    • This will redistribute care work and enable women’s retention in the workforce. 
• Mainstream Women in Infrastructure and Digital Ecosystem Projects: Mandate gender-responsive budgeting in infrastructure creation—sanitation, transport, water, housing—to improve public infrastructure usability for women.  
  • Embed Digital Saksharta and PMGDISHA into national infrastructure and rural internet projects to boost women’s digital empowerment. 
  • Involve women in planning and monitoring infrastructure projects through community participation platforms.  
    • Gender audits and mobility mapping should be institutionalised in Smart City and AMRUT projects. This will make infrastructure more inclusive and empowering. 
• Promote Formalisation and Social Security for Women in Informal Sector: Create a Gender-Smart Udyam Registration Drive to bring women-led informal enterprises under the formal framework.  
  • Extend e-SHRAM, ESIC, and NPS coverage with simplified documentation and mobile-enabled enrolment.  
  • Promote women-specific clusters under One District One Product (ODOP) for aggregating value and formalising supply chains. 
    • This enhances visibility, protection, and productivity of informal women workers. 
• Strengthen Women's Representation in Governance and Decision-Making: Mandate gender quotas across government boards, local planning committees, MSME promotion councils, and cooperative societies.  
  • Link panchayat incentives to inclusion of women in economic and planning roles.  
  • Institutionalise capacity building on gender budgeting and planning at all tiers of governance. Women in leadership drive more gender-sensitive policies and resource allocations. 
• Expand Gender-Sensitive Work Norms in the Private Sector: Mandate paternity leave and gender audit disclosures under Corporate Social Responsibility (CSR) and ESG frameworks.  
  • Incentivise private firms to create returnship programs and re-skilling options for women post-career break.  
  • Introduce a Gender Equity Index for companies, linked to public procurement preferences. Encourage adoption of flexi-time, work-from-home, and on-site childcare facilities across sectors.  
    • These norms can help mainstream gender-inclusive HR practices beyond tokenism. 
• Develop a Unified Women’s Digital Identity and Benefits Platform: Create a Women’s Digital Empowerment Stack—an Aadhaar-linked, API-enabled platform integrating access to welfare, credit, skilling, and insurance.  
  • Use this stack to track progress, reduce leakages, and provide custom advisories. Embed this into Aspirational Blocks Programme and Digital India initiatives. 
  • Partner with fintechs for doorstep delivery of services via women-led CSCs.  
• Decentralise Planning through Gender-Focused Local Development Plans: Institutionalise Gender Action Plans at Gram Panchayat, block, and district levels, integrating inputs from Mahila Sabhas and SHG networks.  
  • These plans should be co-created with women and embedded in annual development planning cycles and financing.  
  • Use data from MoSPI’s Time Use Surveys, NFHS, and SECC to identify priority gaps. Decentralised, data-driven gender planning ensures context-specific and effective interventions.

Conclusion

As the famous Sanskrit saying goes: "राष्ट्रस्य श्रवः नारी अस्ति, नारी राष्ट्रस्य अक्षि अस्ति" — "Woman is the ear through which the nation hears, the eye through which it sees." To truly harness India’s demographic dividend, women's empowerment must shift from aspiration to implementation. Advancing women's equality could lead to a $28 trillion increase in global GDP, with India potentially seeing a $770 billion boost by 2025. A gender-equal economy accelerates not just inclusive growth but national development. These efforts align directly with SDG 5 (Gender Equality) and SDG 8 (Decent Work and Economic Growth). 

Drishti Mains Question:

"India’s growth story will remain incomplete without the economic empowerment of its women." Discuss. 

UPSC Civil Services Examination Previous Year Question (PYQ)   

Prelims

Q. Which of the following gives ‘Global Gender Gap Index’ ranking to the countries of the world? (2017)

(a) World Economic Forum   

(b) UN Human Rights Council   

(c) UN Women 

(d) World Health Organization  

Ans: (a)

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Mains

Q.1 “Empowering women is the key to control population growth”. Discuss. (2019) 

Q.2 Discuss the positive and negative effects of globalization on women in India? (2015) 

Q.3 Male membership needs to be encouraged in order to make women’s organizations free from gender bias. Comment. (2013)  

Q.4 Distinguish between ‘care economy’ and ‘monetized economy’. How can the care economy be brought into a monetized economy through women empowerment? (2023)