India Eyes Targeted Measures to Boost Female Workforce Participation
20 JAN 2025
Finance Minister Nirmala Sitharaman is set to present India's Union Budget for the fiscal year 2025-26 on February 1, 2025, at 11:00 AM. This annual presentation outlines the government's financial plans and policies for the upcoming fiscal year.
The Government of India is gearing up to implement a series of measures aimed at increasing female labour force participation. Finance Minister Nirmala Sitharaman is expected to outline these initiatives in the upcoming Union Budget on February 1, according to sources familiar with the matter.
Key proposals include incorporating incentives into employment-linked schemes, introducing flexible work arrangements, and enhancing workplace infrastructure such as childcare facilities. These steps are designed to create a more inclusive and supportive environment for women in the workforce, said officials.
The female labour force participation rate in India stands at 41.7%, compared to 77.2% for men. Globally, the figure is over 50% for women, significantly trailing the 80% participation rate for men. Addressing this gap is seen as vital for economic growth and achieving gender parity.
The measures under consideration aim to tackle barriers hindering women's participation. Advisory guidelines on flexible work arrangements tailored to specific sectors, including the care economy, are being evaluated. Enhancements in public transport and workplace infrastructure, such as the provision of crèches, are also part of the plan.
A task force led by Labour Secretary Sumita Dawra is expected to submit its recommendations by the end of January. These recommendations will serve as a roadmap for increasing female participation in the labour market.
The push for gender parity in employment aligns with India’s long-term vision of achieving developed-nation status by 2047. Experts estimate that bridging the employment gap could boost India’s GDP by 30%, with women currently contributing 18% despite representing 48% of the population.
To fully leverage its demographic dividend, India’s leadership is focused on targeted interventions that will draw more women into the workforce. These measures not only aim to enhance gender equity but also to unlock significant economic potential.
