Missing Half: Why India’s Growth Needs More Working Women?

India is on the path to becoming a developed nation in the coming decades. However, the overall pattern of national development takes a new twist in line with the restricted number of women in the workforce to date.

Illustration by The Geostrata

Instead of being a peripheral women's problem of fewer women's workforce participation, it is an economic challenge that must be addressed to ensure the nation’s growth, competitiveness, and long-term sustainability.

Relatively low by international, as well as emerging market standards, the labour force participation rate of women in India is not substantial, albeit somewhat improved. The FLFPR has grown significantly over the last six years, by 23–42 per cent, although this is far behind the percentage of males at 70 per cent and the global average of 50 per cent.

Approximately 60 per cent of the working-age women in India continue to be out of labour, with over 145 million women being left out of paid economic activity in raw numbers.

Unless something is done about the greatest threat facing India today, the country stands the danger of missing out on utilising the most powerful demographic dividend.

ECONOMIC IMPACT OF LOW FEMALE PARTICIPATION

The gender gap in the Indian labour force has a bleak economic price. The International Monetary Fund survey indicates that sealing this gap may be able to increase India's GDP by up to 27 per cent.

According to the World Bank, inclusion of 50 per cent of Indian women in the workforce may increase the annual growth rate of the GDP by up to 1.5 percentage points, which could reach 9 per cent per year. More conservatively, McKinsey Global Institute estimates that closing the gender gap can bring an added $770 billion to the Indian GDP by 2025.

The dividend of women's participation is not confined to GDP figures. Work by women increases the household income level, leading to a subsequent increment in spending on education, nutrition, and healthcare. The healthier and educational outcomes of children born to working mothers start a virtuous circle of social mobility.

In addition to that, the presence of women in the workforce introduces diversity of thought, resulting in more successful and innovative businesses—particularly when women are in leadership positions.

India has set an ambitious target of achieving 70 per cent female participation in the workforce by 2047, which can translate to a 400-million-strong female workforce and a 45 per cent proportion of the targeted 14-trillion-dollar economy. Nevertheless, some obstacles jeopardise this vision.

Women still bear an unequal burden of unpaid domestic and care demands, which further limits or undermines their economic gains despite increased labour force participation. The long-held cultural norms and beliefs that women must focus on home and family lead to opposition to career ambitions, in particular among traditional and rural societies.

Lack of good transport and workplace facilities, and perceived harassment, also act as barriers to taking up new jobs—especially in the urban areas. Although the level of educational attainment is improving, a clear decline in female representation is noticed between the school-to-work transition, indicating pipeline losses.

Biases in hiring and promotion, and gender-based pay gaps, remain widespread, with women in senior management accounting for less than 18 per cent. STEM, technology, startups, and entrepreneurship today and in the future are realms where women remain underrepresented, limiting diversity, innovation, and inclusive growth.  

India is moving to a period where its demographic dividend of a young, growing workforce will start to narrow, as the fertility rates have already reduced, and the total population age structure changes.

With the current labor force stagnating, accessing the pool of able-bodied, educated women is not only preferable but a necessity to keep the economy going.

Failing to mobilise this demographic will result in a tighter labour market, dampened productivity, and lost competitive advantage on the global stage.

NUANCED BENEFITS OF WOMEN'S PARTICIPATION

Macroeconomic Resilience: A gender-diverse workforce enhances economic resilience by evening out consumption patterns and fostering more inclusive, sustainable growth models.

Multiplier for Next-Gen Growth: International experience, such as in the US and East Asia, shows that rising female participation boosts household incomes and national productivity, thereby enabling larger investments in health, education, and infrastructure.

Reduction in Violence and Social Ills: Higher socioeconomic power among women is linked to a lower incidence of domestic violence and wider social stability.

Corporate Performance: Firms with greater gender diversity—especially in leadership—report superior profitability and innovation. This is attributed to better problem-solving, broader perspectives, and stronger governance.

Community Development: When women attain financial independence, families invest more in children’s futures, leading to long-run increases in human capital and social well-being.

The realisation of Viksit Bharat (Developed India) by 2047 in India depends on empowering more women to take an effective part.

In the previous years, there have been significant changes: maternity leave was significantly increased, creche centres were created, special tax credits were introduced when employing women, and the skills development initiatives were being widened.

LOOKING FORWARD: THE VIRTUOUS CYCLE

Increases in the availability of affordable, quality care services would permit women to join and remain in the workforce by liberating them from unpaid work. Equal pay, healthy and non-sexualised environments, and mapped careers are crucial mechanisms of retention and promotion.

There should be large-scale mentoring, skilling, and networking programs in high-growth sectors so that women are in the industries of the future. To slowly redefine how people view their obligations, there is a need to conduct behavioural change campaigns that describe how men can participate in caregiving processes, as well as the removal of stereotypes.

Not only women, but the entire nation benefits in terms of an enriched women's workforce in the future.

This transition would trigger a positive game of economic and social benefits for the well-heeled populations, more productive workforces, competitive sectors, thriving communities, and strong institutions, which would lead the path to a sustainably developed country.

Women in India represent the missing half of the country, but with empowerment and mobilisation, they would be the ultimate force to propel India to the top of global economic giants.

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BY POSHIKA MUKKU

TEAM GEOSTRATA

info@thegeostrata.com