25 Jul A Growth Story That Needs Women at Work

Why in News?

An editorial highlights that achieving Viksit Bharat@2047 and sustaining high economic growth requires significantly increasing Female Labour Force Participation Rate (FLFPR), as India’s growth story remains incomplete without greater participation of women in the workforce.

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Context

• India aims to become a developed economy by 2047.
• Despite rapid GDP growth aspirations, female workforce participation remains among the lowest globally.
• The editorial argues that boosting women’s employment is not merely a social objective but a key economic strategy to enhance productivity, demand, and long-term growth.

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Key Highlights

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Why Women’s Employment Matters

1. Accelerates Economic Growth

• Expands the labour force and productive capacity.
• Addresses labour shortages in key sectors.
• Enhances economic resilience and competitiveness.

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2. Boosts Household Welfare

Higher female employment leads to:

• Increased household income.
• Higher consumption and savings.
• Better nutrition and healthcare.
• Improved educational outcomes for children.
• Greater human capital formation.

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3. Improves Productivity

• Diverse workplaces encourage innovation and better decision-making.
• Greater gender diversity enhances efficiency and competitiveness.
• Women’s employment strengthens overall national productivity.

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Decline in Women’s Workforce Participation

1. Structural Transformation

• During the 1980s and early 1990s, women primarily worked in agriculture.
• As economic transformation occurred, agricultural employment declined.
• Mechanisation reduced demand for manual agricultural labour.

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2. Rising Education

• Increased school and college enrolment among young women delayed labour market entry.
• Female Work Participation Rate (WPR) followed a U-shaped pattern, declining initially before showing signs of recovery.

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3. Slow Job Creation

Between 2012 and 2018:

• Employment growth slowed in both farm and non-farm sectors.
• Manufacturing failed to generate sufficient jobs.
• Labour-intensive industries weakened.

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4. COVID-19 Impact

• Reverse migration pushed many women back into agriculture.
• Many entered unpaid family labour or informal employment.
• The increase in participation after 2020 reflected economic distress rather than improved employment opportunities.

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Challenges to Female Employment

1. Weak Manufacturing Sector

• Capital-intensive sectors such as finance and IT created limited employment.
• Labour-intensive industries like textiles, garments, food processing, and small manufacturing experienced slower growth.
• Women’s manufacturing employment in 2019 remained below 2004 levels.

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2. Educated Female Unemployment

• Despite improvements in secondary education and gender parity, educated young women continue to face high unemployment.
• Many remain outside both employment and education (NEET category).

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3. Regional Disparities

A significant North-South divide exists:

• Southern States exhibit higher female workforce participation.
• Northern States continue to record lower female employment and higher unemployment among young women.

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4. Social Constraints

Women continue to face:

• Limited mobility.
• Safety concerns.
• Caregiving responsibilities.
• Restrictive gender norms.
• Lack of adequate childcare facilities.

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Tamil Nadu: A Successful Model

Tamil Nadu demonstrates how policy support can increase women’s employment.

Success Factors

• Strong textile and garment industry.
• Electronics assembly and automobile manufacturing.
• Better female literacy.
• Improved transport connectivity.
• Hostel facilities for women workers.
• Industrial clusters such as Tiruppur, Coimbatore, and Sriperumbudur.

More than 40% of India’s women factory workers are employed in Tamil Nadu, despite the state accounting for only around 5–6% of India’s population.

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Policy Recommendations

1. Promote Labour-Intensive Manufacturing

Focus on sectors such as:

• Textiles
• Garments
• Food processing
• Leather
• Electronics assembly
• MSMEs

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2. Invest in Human Capital

• Improve public education.
• Strengthen healthcare and nutrition.
• Reduce malnutrition and stunting among girls.
• Enhance skill development.

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3. Improve Workplace Ecosystem

• Safe transportation.
• Affordable childcare.
• Hostel facilities.
• Flexible work arrangements.
• Better working conditions.

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4. Enhance Women’s Employability

• Skill development aligned with industry demand.
• Digital literacy.
• Vocational education.
• Apprenticeship opportunities.

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5. Reduce Regional Disparities

• Encourage industrialisation in northern and eastern States.
• Replicate successful state-level models like Tamil Nadu.
• Improve female literacy and labour mobility.

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Way Forward

Achieving Viksit Bharat@2047 requires transforming women from underutilised human resources into active participants in economic development. Expanding female employment through labour-intensive industrialisation, skill development, social infrastructure, and gender-sensitive policies will be essential for sustaining high and inclusive economic growth.

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Conclusion

Women’s employment should be viewed not merely as a welfare measure but as a strategic economic imperative. Higher female labour force participation can accelerate GDP growth, improve household welfare, enhance productivity, and ensure that India’s demographic dividend translates into inclusive and sustainable development.

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UPSC Prelims Practice Question

Q. With reference to Female Labour Force Participation Rate (FLFPR) in India, consider the following statements:

1. Increasing female labour force participation can contribute significantly to GDP growth.
2. Tamil Nadu employs a disproportionately high share of India’s women factory workers.
3. India’s female labour force participation rate is among the highest in Asia.

Which of the statements given above is/are correct?

(a) 1 only
(b) 1 and 2 only
(c) 2 and 3 only
(d) 1, 2 and 3

Answer: (b)

 

Explanation

• Statement 1 is Correct: Studies suggest that increasing India’s Female Labour Force Participation Rate (FLFPR) can significantly boost economic growth. According to the editorial, a 10 percentage-point increase in female work participation could raise GDP growth by nearly 2 percentage points by expanding the labour force, increasing productivity, and improving household incomes.
• Statement 2 is Correct: Tamil Nadu is India’s leading State in female industrial employment. Despite accounting for only 5–6% of India’s population, it employs over 40% of India’s women factory workers, supported by strong textile, garment, electronics, and automobile industries, along with better social infrastructure.
• Statement 3 is Incorrect: India’s FLFPR remains below 30% and is among the lowest in the world, comparable to several West Asian countries. Therefore, it is not among the highest in Asia.