Women’s participation in the economy has undergone a significant evolution, transcending traditional roles and carving out spaces in diverse sectors. Historically relegated to domestic spheres, women now stand at the forefront of economic activities, driving innovation, entrepreneurship, and workforce diversity. This transformation is not merely a matter of equality but also a strategic imperative for sustainable development and global prosperity. As women increasingly engage in formal employment, leadership roles, and entrepreneurial ventures, their contributions to economic growth, wealth creation, and social progress become ever more apparent. However, persistent challenges such as gender wage gaps, limited access to resources, and cultural biases continue to impede the full realization of women’s economic potential. Empowering women economically is not only a matter of rights but also a catalyst for building more resilient and inclusive economies.
Transforming Economic Roles of Women in India:
The World Bank’s “Women, Business and the Law 2022” report, outlines the importance of women’s economic empowerment and involvement in business. According to the 2022 report, “nearly 2.4 billion women globally don’t have same economic rights as men.”
Status
1. Evolving Economic Contribution:
- Traditionally restricted, women’s economic role in India is gaining recognition, currently contributing approximately 18% to the national GDP.
- According to World Inequality Report, 2022 , men in India capture 82% of labour income, while women earn just 18%.
2. Agricultural Workforce Participation:
- Women constitute 48% of the agricultural workforce, yet their land ownership is limited to 13%, highlighting existing gender disparities.
3. Workforce Distribution:
- Within the manufacturing sector, women represent about 20% of the workforce, while in the services sector, they constitute approximately 30% of the total workforce.
- Despite a surge in the enrollment rate for girls in Class 10, India’s Female LFPR has declined from 30% to 24% over the past two decades.
- India’s female LFPR (24%) is the lowest among BRICS countries and select South Asian countries.
4. Unorganized Sector Employment:
- Out of the 432 million working-age women in India, a substantial 343 million are employed in the unorganized sector, showcasing the need for formal employment opportunities.
5. Women in Entrepreneurship:
- India boasts the world’s 3rd largest startup ecosystem, with 10% of startups led by women founders. Research indicates that ventures initiated by women exhibit higher sustainability.
6. Corporate Leadership Growth:
- A 2022 survey across 250 Indian companies revealed a 55% increase in women’s representation in Chief Executive Officer or Managing Director roles, signifying significant strides in their economic leadership.
7. Startups and Sustainable Ventures:
- Women-led startups contribute to India’s dynamic startup environment, and their ventures are often characterized by sustainability, adding valuable dimensions to the business landscape.
8. Expanding Female Leadership:
- The growing presence of women in leadership positions is indicative of their expanding role in steering economic growth, fostering a more inclusive and diverse corporate landscape.
9. Bridging Gender Disparities:
- Efforts to bridge gender disparities in economic participation are gaining momentum, emphasizing the importance of empowering women across various sectors for holistic national development.
10. Progressive Outlook:
- The evolving economic roles of women underscore a progressive shift in societal norms, recognizing and leveraging the diverse talents and potential that women bring to the Indian economy.
Advantages of Women’s Economic Empowerment on the Indian Economy:
1. Economic Growth Projection:
- Achieving gender equality is forecasted to contribute significantly to the Indian economy, with an estimated US$700 billion added to the GDP by 2025.
2. GDP Boost through Workforce Equality:
- The International Monetary Fund (IMF) projects a substantial 27% increase in India’s GDP by 2025 with the equal and active participation of women in the workforce.
3. Social Implications:
- Beyond economic gains, empowering women yields broader social benefits. Women, known for allocating 90% of their income to their families, play a pivotal role in enhancing demand.
4. Holistic Family Well-being:
- Economic empowerment of women translates to families with improved well-being. These families tend to have healthier, better-educated children, contributing positively to human development indices.
5. Amplified Demand Creation:
- Empowered women play a crucial role in boosting demand for goods and services. Their increased purchasing power contributes to economic growth by creating a more robust and resilient market.
6. Profitability Surge:
- Reports indicate that businesses experience heightened profits when deliberate efforts are made to empower women in emerging markets. This underscores the positive correlation between gender-inclusive practices and corporate success.
7. Holistic Development Strategy:
- Recognizing the multifaceted impact of women’s economic empowerment, it becomes a strategic imperative for comprehensive national development, fostering a more vibrant and sustainable economic landscape.
8. Education and Skill Enhancement:
- Economic empowerment often involves education and skill development initiatives for women, further contributing to a skilled and capable workforce, aligning with the demands of a rapidly evolving economy.
9. Diversity and Innovation:
- A gender-inclusive workforce fosters diversity, bringing varied perspectives and innovative ideas to the forefront. This not only enhances workplace environments but also fuels creativity and problem-solving.
10. Sustainable Development Goals:
- Aligning with global sustainability goals, women’s economic empowerment emerges as a catalyst for achieving a harmonious blend of economic growth, social progress, and environmental sustainability.
Challenges Encountered by Women in the Indian Workforce:
1. Rural-Urban Disparities:
- Disproportionate representation of women in the rural workforce compared to urban areas.
2. Persistent Gender Wage Gaps:
- Ongoing disparities in wages between genders across various employment sectors.
- According to the Report “Women and Men in India 2022″ released by the National Statistical, wage disparity between men and women has widened over the past decade, with the gap opening up further at higher wage levels.
3. Dual Responsibilities:
- Women face the dual challenge of juggling employment and domestic duties, including household chores and caregiving responsibilities.
4. Workplace Safety and Harassment:
- Safety concerns, including instances of sexual harassment, pose significant challenges for women in the workplace.
- For this, the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) (PoSH) Act, 2013 is there but recently Supreme Court emphasized the serious lapses and uncertainties surrounding the Act, leading to many working women feeling compelled to leave their jobs.
5. Male-Dominated Social Structure:
- India’s societal fabric, dominated by men in economic, political, religious, social, and cultural spheres, presents hurdles for women’s progress.
6. Gender-Based Discrimination:
- Despite existing laws, gender-based discrimination persists in Indian society, reflecting gaps in legal implementation.
- Women lag behind men by 28% across key dimensions of human development, as measured by the Global Gender Parity Index.
7. Mixed Outcomes of Development Programs:
- Initiatives aimed at fostering gender equality have yielded mixed results, pointing to the need for more effective strategies.
- The allocation for the Union Ministry for Women and Child Development saw a small increase of 1%. Around 90% of gender budgeting is concentrated in five ministries: Rural Development, Women and Child Development, Agriculture, Health and Family Welfare, and Education.
FAQs
Q: Why is women’s participation in the economy important?
Women’s participation in the economy is crucial for fostering economic growth and development. By tapping into the talents, skills, and perspectives of half the population, economies can become more innovative, competitive, and resilient. Additionally, increased female labor force participation can help address labor shortages, boost productivity, and contribute to poverty reduction.
Q: What are some barriers hindering women’s participation in the economy?
Several barriers impede women’s full participation in the economy, including cultural norms and stereotypes, lack of access to education and training, limited job opportunities, gender pay gaps, unequal distribution of household responsibilities, and inadequate support for childcare and parental leave. Addressing these barriers requires comprehensive policies and initiatives aimed at promoting gender equality and women’s empowerment.
Q: How can businesses benefit from promoting women’s economic participation?
Businesses stand to gain numerous benefits from promoting women’s economic participation, including access to a larger talent pool, improved diversity and inclusion, enhanced innovation and problem-solving, increased employee satisfaction and retention, expanded market reach, and better financial performance. Companies that prioritize gender equality and create supportive work environments tend to outperform their competitors in the long run.
Q: What role can governments play in supporting women’s economic empowerment?
Governments play a vital role in promoting women’s economic empowerment through policy interventions and legislative measures. This includes implementing laws to ensure equal pay for equal work, providing access to education and skills training, offering affordable childcare and parental leave policies, encouraging women’s entrepreneurship, and fostering an enabling environment for women to participate in decision-making processes.
Q: How can individuals contribute to advancing women’s participation in the economy?
Individuals can contribute to advancing women’s participation in the economy by challenging gender stereotypes, supporting women-owned businesses, advocating for policies that promote gender equality, mentoring and networking with women professionals, promoting work-life balance initiatives in their workplaces, and actively supporting women’s education and career development. By taking proactive steps, individuals can help create a more inclusive and equitable economic landscape for women.
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