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Social Identities and Female Labour Force Participation in India

Caste remains one of the most entrenched forms of social stratification in South Asia, shaping access to opportunity, dignity, and mobility. The Asian Dalit Rights Foundation estimated in 2017 that 20-25% of the global population, particularly in South Asia, continues to face caste-based discrimination. Historically rooted in occupational divisions, caste has evolved into a rigid, inherited identity that restricts upward mobility, especially for those burdened with degrading and hazardous work like manual scavenging.

In India, the intersection of caste and gender creates compounded barriers for marginalised women. While gender inequality is widely acknowledged in the labour market, the additional layer of caste bias remains insufficiently explored. Women from Scheduled Castes (SCs) and Scheduled Tribes (STs) often face systemic exclusion in education, hiring, and wages, perpetuating economic and social inequalities. Despite constitutional safeguards and laws against untouchability, caste continues to influence labour outcomes-particularly for Dalit women-who remain underrepresented and disadvantaged in the workforce.

This brief seeks to surface evidence and disaggregated data to better understand how caste intersects with gender to shape labour force participation in India. By doing so, it highlights the urgent need for policy action that acknowledges caste-based exclusion as a persistent, structural barrier to equality.

Towards a Gender-Responsive and Inclusive Economic Recovery for India in the COVID-19 Context

The COVID-19 pandemic disproportionately impacted India’s most vulnerable populations, with women and girls bearing the brunt of job losses, heightened unpaid care responsibilities, and reduced economic participation. At the peak of the first lockdown in April–June 2020, India’s female labour force participation rate plummeted to just 16%, and nearly half of all working women faced permanent job losses-compared to just 7% of men. Women-owned and women-led micro-enterprises also experienced severe income declines and closures.

Despite government relief measures, many failed to reach the most marginalised women and girls. As India moves toward economic recovery, there is an urgent need for a just, equitable, and gender-responsive recovery plan that puts women at the centre.

This brief by IWWAGE outlines key short-, medium-, and long-term macroeconomic strategies-across monetary, fiscal, and innovative financing domains-to ensure women and girls are not left behind. It calls for investments in the care economy, the creation of equitable jobs and livelihoods, and the adoption of sustainable, climate-just, and rights-based economic models that support long-term resilience.

Towards a Gender-Responsive and Inclusive Economic Recovery for India in the COVID-19 Context

The COVID-19 pandemic and lockdowns disproportionately affected vulnerable groups in India, especially women and girls. Women faced significant job and income losses, a slow employment recovery, and an increased burden of unpaid care work, forcing many to leave the labour force.

Government data shows female labour force participation dropped to 16% after the lockdown, with fewer than 1 in 5 women working or seeking work. The State of Working India Report 2021 found nearly 47% of working women permanently lost their jobs by the end of 2020, compared to just 7% of men. Women-led micro-enterprises saw incomes fall by 73% during the early lockdown, with over 10% closing by May 2020.

Although the government introduced measures to address the lockdown’s impact, many initiatives did not reach marginalised women and girls. As India recovers, a gender-responsive, equitable recovery plan is essential.

Globally, governments are adopting policies that prioritise the care economy, equitable job creation, and systemic environmental changes. A gender-equitable recovery requires rethinking economic models to focus on care, climate justice, and human rights. Mobilising resources and diversifying funding is also critical to address long-term challenges and avoid deepening poverty.

This paper proposes macroeconomic recovery strategies for India, centred on women and girls. It offers short-, medium-, and long-term measures in monetary and fiscal policy, along with innovative financing options to achieve gender-equitable outcomes.

From aspiration to empowerment: Impact of women’s collectives

The Deendayal Antyodaya Yojana- National Rural Livelihoods Mission (DAY NRLM) has adopted a focussed approach towards gender mainstreaming in its programme architecture. This includes establishing institutional mechanisms like Social Action Committees at the village organisation (VO SAC) and cluster federation levels to serve as response mechanisms to various issues that women and girls face, and that continue to act as barriers for them in accessing their rights and entitlements to lead a decent living. These Social Action Committees have shown exemplary leadership in strengthening the gender responsiveness of the programme at the grassroots level, especially during COVID-19.

The compendium on best practices titled, From aspiration to empowerment: Impact of women’s collectives, was launched in the presence of Sadhvi Niranjan Jyoti, Minister of State, Rural Development, officials from the Ministry of Rural Development and all State Governments through an online event, national webinar on sharing of best practices adopted for addressing gender issues by VO SACs held on June 29, 2021. The compendium of case studies from 23 States highlights the processes, mechanisms, strategies and plans for replicating and scaling gender interventions to advance gender equality and end all forms of discrimination against women and girls. This volume contains inspiring stories of VO-SACs in increasing women’s access to rights and entitlements, and other economic issues like addressing wage disparities between men and women in the village through collective action; addressing issues of drudgery; the labour rights of migrants, prevention of child marriage, increasing girls’ retention in schools, preventing child abuse, alcoholism, domestic violence, witch hunting, human trafficking, and COVID-related gender issues. Broadly, the case studies highlight how VO-SACs have used multiple strategies including restorative justice, collective action, offering support to women (including psycho-social support) and sometimes even engaging with men to address issues that matter to women.

COVID-19 and Women’s Labour Crisis

The COVID-19 pandemic has had a disproportionately adverse impact on women in India, exacerbating pre-existing gender inequalities in the labour market. Women experienced greater job losses and a slower return to work compared to men, deepening the already low and declining female labour force participation (FLFP) in the country. Alongside economic setbacks, women faced a sharp increase in unpaid care responsibilities due to school closures, care for the sick, and additional household duties, particularly in response to returning migrants and food insecurity. These dynamics have further limited their time and opportunities for paid work.

This analysis explores the state of women’s employment before the pandemic and offers early insights into the effects of COVID-19, drawing from microstudies and available literature. It also critically examines the adequacy of existing social protection and employment generation programmes intended to support women’s economic participation. Understanding these impacts is vital for designing responsive and inclusive policy measures that not only address the fallout of the pandemic but also advance long-term gender equity in the workforce.

Digital Solutions for SHGs in Chhattisgarh

In partnership with the State Rural Livelihoods Mission (SRLM) in Chhattisgarh and Haqdarshak Empowerment Solutions Private Limited (HESPL), IWWAGE an initiative of LEAD at Krea University is implementing a project to enhance awareness and uptake of government welfare schemes through a unique community-led model.

Under this initiative, women self-help group (SHG) members are trained to become Haqdarshikas-agents who use a digital application called Haqdarshak to identify relevant central and state government entitlements. Armed with this tool, Haqdarshikas go door-to-door in their communities, sharing information and helping families apply for schemes, charging a small, affordable fee for their services.

A survey of 411 Haqdarshikas, conducted in 2020, revealed critical insights into retention, challenges, and the impact of COVID-19 on their work. While many women remained active in the field, a significant number had stopped using the app-pointing to a need for improved digital access and ongoing support. Encouragingly, the majority of Haqdarshikas held leadership positions in their SHGs and VOs, showcasing the model’s ability to harness women’s agency and social capital.

Findings also indicated that the top motivators for joining the program were a desire to build identity, earn income, and learn new skills. However, barriers such as limited citizen interest in entitlements, lack of smartphone access, and reduced income due to the pandemic were noted. Notably, even during COVID-19, many Haqdarshikas continued working, underscoring their resilience and commitment.

This initiative not only strengthens women’s economic empowerment but also promotes inclusive access to social protection, especially for rural and marginalised households. Through continued research and qualitative insights, IWWAGE aims to further refine this model and ensure sustained impact.

Stories of Resilience and Hope

With over 60 million women mobilised to be part of one of India’s largest livelihoods programme, the Deendayal Antayodaya Yojana-National Rural Livelihoods Mission (DAY-NRLM), holds great promise for advancing women’s socio-economic empowerment by organising them into self-help groups (SHGs) and institutions of the rural poor. These platforms are facilitating financial opportunities and livelihood support services for women. The livelihoods programme works exclusively with rural women, and a critical element for its success has been the mission’s commitment towards prioritising women’s perspectives and being responsive to their needs and aspirations. This approach has been embedded across all DAY-NRLM activities with the goal of strengthening women’s agency, identity, well-being, and solidarity, through women’s collectivisation.
Through the compendium ‘Stories of Hope and Resilience’ the Initiative for What Works to Advance Women and Girls in the Economy (IWWAGE) and the Deendayal Antyodaya Yojana – National Rural Livelihood Mission (DAY-NRLM) attempt to showcase the life and experiences of rural women and their gendered disadvantage, struggles and barriers. Released on April 16, 2021 at the launch of the Gender Samvaad initiative by the honourable Secretary Rural Development, Shri Nagandra Nath Sinha, the compendium captures the stories of ten women, across seven states. These Stories of Hope and Resilience weave together narratives of grit, strength, perseverance and hope. These inspiring stories demonstrate the journeys that women have taken to change their circumstances and build better futures for themselves. The compendium of case studies is representative of a number of women around the country who have been supported by Deen Dayal Antyodaya Yojana – National Rural Livelihoods Mission, to overcome their circumstances and to lead more meaningful lives.

Home production, Technology and Women’s Time Allocation in Rural India

Access to clean cooking fuel is not only a matter of health but also a crucial factor in advancing gender equality. In rural India, traditional gender roles place the burden of cooking and fuel collection squarely on women, constraining their time and limiting their participation in the labour market. The use of solid fuels like firewood has severe health repercussions, particularly for women, who face significantly higher exposure levels than men.

This study, based on a cluster-randomised controlled trial in rural Madhya Pradesh, explores the potential of switching to liquefied petroleum gas (LPG) through targeted information campaigns highlighting the health benefits of clean fuels and existing government subsidies. Building on the Government of India’s Pradhan Mantri Ujjwala Yojana, which has extended subsidised LPG access to over 80 million households since 2016, the project aims to understand whether efficient home production technologies like LPG can free up women’s time and improve their well-being.

Despite the policy’s wide reach, many rural households underuse LPG due to a lack of awareness about subsidies or the perceived cost of refills. The study aims to address these gaps, with the broader goal of enhancing female labour force participation and reducing time poverty through improved access to clean energy.

Women’s Workforce Participation in India: Statewise Trends

West Bengal, home to 99 million people, is the fourth most populous state in India. With a primarily rural population and agriculture as the main source of employment, women’s work participation rates remain low. Many women in rural areas engage in unpaid agricultural labor, particularly in paddy fields, leading to underreporting of their contributions. The state’s female labour force participation rate (FLFPR) is 17.5%, below the national average. Despite challenges, West Bengal shows strong performance in indicators like maternal mortality and sex ratio, though issues like gender inequality in the labour market and high rates of under-nutrition persist.

Global Policy Summary: Childcare Crisis

The COVID-19 pandemic magnified the global childcare crisis, exposing deep inequalities in how care work is valued and distributed. With school closures and limited access to childcare services, unpaid care burdens surged—falling disproportionately on women and girls. This not only undermined progress on gender equality but also strained families, reduced women’s economic participation, and weakened childcare systems globally.

To ensure a just, resilient recovery, childcare must be placed at the centre of economic and social policy. Governments, donors, and the private sector must work together to support care systems that enable women’s full participation in the workforce and recognise care as essential to economic growth and social well-being. Guided by the ILO’s 5Rs of Care Framework, the policy summary outlines a roadmap for action for pathways to a stronger, more equitable future.