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Women’s Workforce Participation in India: Statewise Trends

Tamil Nadu, the second-largest economy in India with a GSDP of Rs 18,45,853 crores, is known for combining rapid economic growth with high social development. The state boasts strong public services, ranking third in human development and literacy (96.8%) among all states. Tamil Nadu’s female labour force participation rates (FLFPR) are significantly higher than the national average, with rural FLFPR at 35.1% and urban FLFPR at 23.6%. The state also excels in gender indicators, with a low maternal mortality rate of 66 and the third lowest crime rate against women in the country.

Global Executive Summary: Childcare Crisis

The COVID-19 pandemic has pushed the global childcare crisis to a tipping point, threatening to reverse decades of progress on women’s economic empowerment. Women-particularly in low-income and informal work-have borne the brunt of job losses, increased unpaid care responsibilities, and the collapse of childcare services. With schools closed and social support systems overwhelmed, women have taken on nearly the equivalent of a full-time job in childcare each week, often without support, recognition, or compensation.

The crisis is especially acute in low- and middle-income countries, where COVID-19 relief measures have largely overlooked the burden of unpaid care work. Only 8% of global economic responses have addressed childcare, and two-thirds of countries have taken no action at all. Meanwhile, the female-dominated childcare sector itself is under threat, with facilities shutting down and jobs vanishing.

Tackling this crisis is not only a matter of gender equity-it’s smart economics. Investments in affordable, quality childcare can reduce the care burden on women, enable their participation in the workforce, create jobs in the care economy, and boost long-term economic growth.

Guided by the ILO’s “5Rs of care” framework, urgent action is needed to:
1. **Recognise, reduce, and redistribute** unpaid care work through gender-responsive services and social protection;
2. **Reward paid care work** by investing in and protecting jobs in the childcare sector;
3. **Ensure representation** of care workers in policy dialogues and decisions.

Childcare is the backbone of resilient economies and thriving communities. It’s time for policymakers to prioritise care-not just for women, but for a more inclusive and sustainable recovery for all.

Mobility and Safety of Women

India’s remarkable economic growth in recent decades has not translated into equal opportunities for women in the workforce. The female labour force participation rate (LFPR) stood at a historic low of 23.3% in 2017-18, with only a handful of countries reporting lower levels. A key barrier limiting women’s participation in the workforce is the pervasive concern for their safety, which affects not only their freedom of movement but also their access to education, healthcare, and livelihood opportunities. From fears of sexual violence in public spaces and workplaces to societal norms that restrict mobility, women face significant structural and cultural challenges.

This policy brief explores how the lack of safety undermines women’s physical and social mobility and, in turn, their economic empowerment. It highlights the need for gender-inclusive urban planning, greater investment in safe and affordable public transport, and strengthened workplace safety laws. Specific recommendations include mainstreaming gender-responsive budgeting in infrastructure planning, effective utilisation of the Nirbhaya Fund to implement safety initiatives, and better enforcement of the POSH Act and Domestic Violence Act. Creating safer cities and workspaces is not just about protection-it is fundamental to ensuring women’s equal participation in India’s economic future.

Digital Solutions to Unlock the Potential of SHGs and their Federations

Digital tools hold the promise of accelerating women’s empowerment, enhancing the effectiveness and efficacy of existing initiatives, providing new tools to improve knowledge, and creating new opportunities for women to connect and share information.  Most of these initiatives revolve around Self Help Groups (SHGs) and federations, which are social support groups known for empowering women through social mobilisation and financial inclusion. To understand the varied digitization initiatives within the SHG ecosystem in India, IWWAGE undertook a detailed landscape assessment of such initiatives. The study, undertaken in 2018, covered various state chapters of NRLM and SHPAs across states like Andhra Pradesh, Chhattisgarh, Haryana, Jharkhand, Maharashtra, and Tamil Nadu, to understand the level of digitisation undertaken in each. This brief discusses the observations and findings from the study for Chhattisgarh, and identifies challenges and potential opportunities to implement digital solutions to support SHGs.

 

Accelerating Women’s Access to Entitlements through Digital Solutions

Digital innovation presents exciting opportunities for women who are part of collectives or Self Help Groups (SHGs). Technology can be used to link women within SHGs to each other and other existing l networks, and layer other services and use cases to promote their social and economic empowerment.  More specifically, SHGs can use digital platforms to request and receive information and services, so as to enable their members access these services. Moreover, innovative digital solutions can address mobility, cost and literacy barriers and significantly increase the penetration of these benefits. Haqdarshak is an innovative mobile application developed by Haqdarshak Empowerment Solutions Private Ltd (HESPL), in collaboration with Save the Children and Nokia.  The app provides a ready reference of more than 200 central and state government welfare schemes and programmes, and the benefits promised, eligibility criteria, documents required, and application process for each. The brief brings a snapshot of the model.

 

IWWAGE- ISST Briefs

The series of research brief presented below identifies the barriers to women’s labourforce participation and highlights each issue in a separate brief based on available evidence. This is a collaborative series between IWWAGE and ISST.  The briefs have been prepared by IWWAGE and ISST team members and reviewed by an internal team comprising of Ratna Sudarshan, Aasha Kapur Mehta, Sona Mitra and Soumya Kapoor Mehta.

Mobility and Safety of Women: Interlinkages with Labour Force Participation

One of the major factors limiting the participation of women in the labour force is concern for their safety. These include fear of sexual violence in streets, in and around public transportation, schools, workplaces and other public and private spaces. This reality decreases women’s and girls’ freedom of mobility by impacting their ability to participate in school, work and public life; access to essential services; and enjoyment of cultural and recreational opportunities. In particular, ensuring a safe city and a safe workplace by investing in safe and affordable modes of public transportation, infrastructural additions to make cities more accessible for women, and inclusive legal provisions for safety at work can be important enablers of female LFPR. This policy brief attempts to describe the issues underpinning women’s safety as a barrier to their participation in the labour force; and shares recommendations to ensure that safety does not act as a barrier to mobility and the ability to access services that might improve life prospects and opportunities for women and girls.

Women’s Entrepreneurship in India: Harnessing the Gender Dividend

India’s economic growth story has eluded a large section of the micro, small and medium enterprises (MSMEs)—in fact the smallest of the enterprises led by women. This is evident in the fact that, despite the growing number of MSMEs in India, as of 2018–19, only one in every five enterprises was owned by women (21.5 per cent). Not only is women’s representation across sectors low, the growth of existing enterprises also seems to have stagnated over time. This brief seeks to highlight the key challenges to women’s entrepreneurship in India, including social norms and biases, lack of education, unequal opportunities for affordable financing, and limited networking opportunities which prevent them from exploring their full entrepreneurial potential. It also seeks to document some of the key recommendations to address these social, economic and technological constraints.

Financial Inclusion and Female Labour Force Participation

The rapid growth in India over the past decade has been coupled with a steady decline in female labour force participation. Despite rising GDPs, improvements in higher education attainment as well as fall in fertility rates, India’s female labour force participation rate (LFPR) has continued to drop. This has been further aggravated by job stagnation and high unemployment rates in recent years which have impacted women disproportionately and may worsen due to the ongoing pandemic. In India, existing societal norms, low literacy levels as well as lack of access to fixed assets further excludes women from the formal financial structure, thereby hampering their socio-economic growth. The brief analyses the barriers faced by women while accessing financial services and products, the lack of gender- specific policies, discrimination towards women entrepreneurs and geographic distance to financial institutions. Attempt is also made to look at policy interventions, and schemes designed to address some of the supply side barriers.

Barriers for Women in Public Employment

Despite high economic growth and improved health and economic outcomes since the 1990s, female labour force participation (FLFP) has stagnated or declined in India, falling to 17.5 per cent in 2017–18 according to the Periodic Labour Force Survey (PLFS). For working women, the public sector is the largest provider of formal or regular salaried jobs in the Indian economy. Given stagnating FLFP according to official data, the severe impacts of COVID-19 on unemployment, and the necessity to boost economic growth and recovery, removing barriers to women’s opportunities in public employment is more important than ever. The brief looks at the role of women’s public employment prospects in not only creating needed jobs, but delivering indirect benefits such as improved public service delivery, greater social protection for women, and boosts to consumption from increased household incomes. Addressing them will help guarantee the right to safe working conditions, adequate compensation, and deserved social protections that will benefit women workers and the economy at large.

Women in the Indian Informal Economy

Globally, two billion of population aged 15 years and above works in the informal economy, representing 61.2 per cent of world employment. Informal employment is a greater source of employment for men (63 per cent) than women (58.1 per cent). In India, although the absolute numbers are lower, a slightly higher percentage of women workers are in informal employment as compared to men. In India, women are almost always involved in some kind of productive and/or reproductive activity, but much of their work is invisible, and they are largely employed in low skilled, low paid informal work with little or no social security, with a consolidation of caste or religion-based disadvantages, even within a larger context of women’s marginalisation. Within this informal workforce with its persistent gender-based occupational segregation, the COVID-19 pandemic is intensifying pre-existing inequalities, exposing vulnerabilities across every sphere, from health to the economy, security to social protection. The brief analyses gender dimension of informality, its implications and captures the gendered experiences of informal workers during the lockdown and the post-lockdown period.

Women and Unpaid Work

Women’s workforce participation rates (WPR) in India, as measured by the National Sample Survey Organisation (NSSO), have been low and consistently declining over the last 15 years or so. An important part of the reason for this is women’s unpaid and unaccounted work. Time is spent on activities which remain excluded from the radar of large sample surveys on employment. Feminist scholars have been arguing for recognition, reduction and redistribution of unpaid activities to be able to move towards gender equality. With the transformation of the household into the site of work and livelihood due to the COVID- 19 pandemic, power relations are seen manifesting both within and outside the household, forcing women to spend hours in backbreaking work, often not even recognised as work in surveys or discourses. The brief assesses the impact of the pandemic and the consequent lockdown on women workers in informal sectors and shares recommendations to recognise and redistribute unpaid work.

Opportunities for Transformative Financing for Women and Girls

This paper draws on a pre-budget consultation hosted by IWWAGE and The Quantum Hub (TQH) on 1 October 2020, ‘Transformative financing for Gender Equality in a COVID-19 context’ to inform the Union Budget 2021-22. The aim of the consultation was to identify and amplify the needs of millions of women and girls whose lives have been disrupted and severely affected because of the pandemic, but also account for the disadvantages and inequities that existed even before COVID-19. IWWAGE invited experts1 from academia, civil society, NGOs, and donor bodies, who have been actively advocating for transformative financing for gender equality in India. These experts shared their insights from current and past experiences to shape an actionable agenda to improve the lives of women and girls in the current context. IWWAGE, like some of the experts invited for the consultation, is part of the Broad-Based Committee on Gender Budgeting and Analysis that has been set up by the Ministry for Women and Child Development (MWCD). We used this opportunity to provide suggestions to support the gender responsive budgeting efforts of MWCD and that of other relevant ministries, and also shared these with the Ministry of Finance in response to their request for ideas for Union Budget 2021-22. We also aim to share insights from this consultation among key decision makers, relevant line ministries and departments, and to a wider audience engaged in shaping the agenda on advancing gender equality and women’s economic empowerment in India. This paper has been jointly developed by The Quantum Hub (TQH) and IWWAGE.

Understanding the Market Landscape and Enterprise Readiness for Women-led Home-based Businesses

Women entrepreneurs contribute to the Indian economy in terms of GDP and employment. Despite this, they face gender specific barriers in labour force participation, such as, market, mobility, time, and credit constraints. These factors have been the driving forces behind the emergence of home-based businesses led by women especially in the informal sector. As a part of IWWAGE’s strategic vision to facilitate women’s economic empowerment through an evidence-based approach, Part 1 of the study aims to map the market landscape for home-based handicraft and handloom enterprises led by women, and assess their readiness. The subsequent study (Part 2) will look to answer critical questions related to credit access, and alternatives to existing credit scoring mechanisms.

To capture a granular perspective on the state of market access and supply chain linkages, 800 home-based women entrepreneurs were surveyed across Rajasthan and Tamil Nadu. The study sheds light on the need for two approaches when designing policy interventions for improving the market landscape of female entrepreneurs. The first is the need for a facilitative and enabling ecosystem for home-based entrepreneurs because the market landscape itself lacks structure and formality with significant variations across the two states. Second, women entrepreneurs should not be approached as a singular segment but instead, need to be segmented according to their nuanced needs and strengths. A targeted approach through looking at personas or the type of entrepreneurs could be a great beginning. Based on insights from the survey, a diagnostic policy framework ‘Business Readiness Scorecard for Women (WBRS)’ has been developed to identify priority areas for intervention.

 

Impact of COVID-19 on Rural SHG Women in Odisha

The COVID-19 pandemic and subsequent lockdowns to curb the virus have had far-reaching impacts globally. The situation in India has been particularly difficult, with the country recording over 8.9 million cases as of November 2020. The nation-wide lockdown announced on 24 March 2020 had devastating effects on millions of people, their livelihoods and income generating activities. Given the scale of the crisis, it becomes imperative to focus on the impacts on already disadvantaged groups, and more specifically, on women and girls. Experiences from past disease outbreaks globally, demonstrate the need for a gendered analysis for preparedness and response.

This report presents findings from the study, ‘Impact of COVID-19 on Rural SHG Women in Odisha’, conducted by the Initiative for What Works to Advance Women and Girls in the Economy (IWWAGE) and Project Concern International (PCI). The main objectives of this study were to (i) study the overall impacts on women’s well-being during and post the lockdown period, and (ii) understand SHG participation in COVID-19 response activities. Overall, the study demonstrates that rural women in Odisha have had to contend with rising stress and anxiety, loss of income, and an increased load of household work. Concomitantly, the SHG movement has proved to be an immense source of strength and support for women. The report concludes with a set of recommendations to strengthen the SHG platforms and state- run gender initiatives, and to invest in digital tools as these have proved to be a means through which women have kept in touch with family and friends in difficult times.

Women and Work: How India fared in 2020

Women and girls across the world have been disproportionately affected in the year of the pandemic, not in terms of impact of the virus, but more so socially and economically.  While India was rapidly responding to the health crisis, millions of Indians were grappling with the unintended impacts of lockdown measures on the economy and their livelihoods. Even before the onset of COVID-19, India’s female workforce was largely invisible, underpaid, under-protected and constituted largest segment of the informal workforce, which is among the worst-hit this year. But several opportunities exist in 2021 to ensure that India’s women are not left behind in its recovery plans.

Against this backdrop, IWWAGE and The Quantum Hub (TQH) authored a report that draws from various studies, data sources and nationally-representative data sets to look at the key trends and policy developments that came to shape and define the lives of women across India in 2020. This report captures key data on economic and social indicators (like female labour force participation, barriers to work and livelihoods, financial inclusion, digital access, skilling, education and violence against women) that played a central role in determining women’s role in the Indian economy this year.