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IWWAGE-Institute for What Works to Advance Gender Equality

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.