India needs 400 million more women in the workforce to contribute $14 trillion to the economy

India needs an additional 400 million women in the workforce to contribute $14 trillion to the economy, which would require almost doubling the current female workforce. labor force participation The net population share tax rate (LFPR) will increase from 37 percent to 70 percent by fiscal year 2047, according to a new report.

The non-profit organization The/Nudge Institute has released a new report, Labour Force Participation Distillation Report, which outlines a crucial element for India’s economic future. The report is based on the Periodic Labour Force Survey (PLFS) conducted over the years.

As the country aims to become a $30 trillion economy by 2047, the report highlights the need for a substantial increase in female participation in the workforce to achieve this goal.

According to the report, India needs 400 million more women in the workforce to contribute $14 trillion to the economy. This would require nearly doubling the current female labor force participation rate from 37% to 70% by fiscal year 2047.

It is estimated that only 110 million women will be entering the workforce by then, so 145 million more women will need to be recruited to achieve that goal.

The report reveals a stark disparity in job security and recovery between men and women. Women were found to be seven times more likely to lose their jobs and eleven times more likely to not recover from job loss. By 2020, nearly half of women employed in 2019 had left the workforce, the report said. Women predominantly work in low-productivity sectors, such as agriculture and manufacturing, where they face limited advancement.

According to the report, in construction, women make up just over 12% of the workforce and often earn much less than men in unskilled positions. The pandemic has exacerbated these issues, as many rural women have been forced to return to work due to the loss of income or employment of their primary breadwinners, highlighting the fragility of female employment.

To address these challenges, the report outlines three key pathways to increasing female participation in the workforce.

First, redefining work through platform jobs and digital micro-jobs could trigger a fracturing of employment.

Secondly, improving business opportunities through digital commerce infrastructure could boost the sector.

Third, addressing barriers such as mobility and digital access is crucial to improving women’s participation in the labour market.

Kanishka Chatterjee, director and editor of The/Nudge Prize, stressed the urgency of this challenge.

“India’s demographic dividend and dreams of a $30 trillion economy cannot be realised without boosting women’s participation in the workforce,” Chatterjee said.

He acknowledged the progress made, but stressed the need for urgent and sustained measures to overcome economic, social and cultural barriers.

To compile this report, The/Nudge Prize team analysed all PLFS data from the last two cycles across different sectors that either contribute to the PLFS or are experiencing a higher growth rate, the report notes.

“When we looked at the PLFS survey data, we understood what the supply side is or where women or men are working today. But there are no other data indicators available that allow us to clearly see what are the demand side indicators available in India that will hire women or that may be more suitable for women to take up jobs or boost their entrepreneurial careers,” she said.

“One of the key aspects to keep in mind, if we need to solve or address the issue of labour force participation rate, is to take a holistic approach. We need to not only look at how labour is available and what skills are available, but also look at what is driving demand today, and this is exactly what we also highlight in the report,” the report adds.