India needs 400 million more women in workforce by 2047 to achieve $14 trillion economy: Report
By Sunita Iyer | First Published Aug 24, 2024, 5:04 PM ISTA recent report by The/Nudge Institute highlights the critical need for an additional 400 million women to join India's workforce by the fiscal year 2047 to contribute $14 trillion to the economy.
A recent report by The/Nudge Institute highlights the critical need for an additional 400 million women to join India's workforce by the fiscal year 2047 to contribute $14 trillion to the economy. This ambitious target requires nearly doubling the current female labour force participation rate (LFPR) from 37% to 70%, emphasizing the urgency of addressing gender disparities in the workforce.
The Labour Force Participation Distillation Report, based on data from the Periodic Labour Force Survey (PLFS) over the years, reveals that only 110 million women are projected to join the workforce by 2047, leaving a significant gap of 145 million women needed to meet the target.
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The report underscores the stark disparities between men and women in terms of job security and recovery. It states that women are seven times more likely to lose their jobs and eleven times more likely not to recover from job loss compared to men. By 2020, nearly half of the women employed in 2019 had exited the workforce, highlighting the precarious nature of female employment in India.
Women in India are predominantly employed in low-productivity sectors such as agriculture and manufacturing, where opportunities for advancement are limited. In the construction sector, women constitute just over 12% of the workforce and often earn less than men in unskilled roles. The COVID-19 pandemic has exacerbated these issues, forcing many rural women back into the workforce due to income loss or job loss by primary earners.
To address these challenges and boost female labour force participation, the report identifies three key pathways: redefining work through platform jobs and digital microwork, enhancing entrepreneurship opportunities via digital commerce infrastructure, and addressing bottlenecks such as mobility and digital access.
Kanishka Chatterjee, Director & Head of The/Nudge Prize, emphasized the importance of boosting women's workforce participation to realize India's demographic dividend and achieve the goal of a $30 trillion economy. "India's demographic dividend and dreams of a $30 trillion economy cannot be realised without boosting the participation of women in the workforce," he stated.
The report also stresses the need for a holistic approach to solving the labour force participation rate issue. It calls for a comprehensive understanding of both the supply side, where women and men work today, and the demand side, identifying sectors and opportunities better suited for women to take jobs or pursue entrepreneurial ventures.
"When we looked at PLFS data, we understood what the supply side is or where women or men work today. But there are no other data pointers available where we can clearly see what are the demand markers available in India which will hire women, or which may be better suited for women to take jobs or to drive their entrepreneurial journeys," the report said.
"One of the key things to consider, if we need to solve or address labour force participation rate, is to have a holistic approach. Not only to see how labour is available and what skills are available, but also to see what is driving demand today -- and this is exactly what we also bring out in the report," it added.
The/Nudge Institute's analysis of PLFS data across the last two cycles of different sectors contributes to this report, aiming to provide a clearer picture of the current and potential future landscape for women in India's workforce.
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