India needs 50% more women in workforce to achieve its goal to become a $7 trillion economy by 2030: NLB Services

Since 1990, India’s economy has grown over ten times, making it one of the fastest-growing in the world. By 2030, it’s expected to be the third-largest, after the U.S. and China. A recent report indicated, boosting female participation in the workforce is crucial to speed up this growth. Women can contribute significantly across industries, from farming to tech, creating value, and wealth, further driving the GDP. Currently, millions of Indian women are employed in unorganised sectors as daily wage labourers, however, participation in organised sector is below 30%.

An analysis of female employment based on ASI 2019-20 reveals a notable gender disparity across various industries, with women being more concentrated in certain sectors. The garment industry exhibits a balanced gender ratio, however, in most other major industries, men outnumber women significantly. For instance, the manufacturing sector, contributing about 16-17% to the national GDP, exhibits a pronounced gender imbalance. Certain industries such as chemicals, computers and optics, printing, reproduction of media, and motor vehicles have seen a decline in female workers. Additionally, there’s a widening wage gap, with states like Puducherry, Rajasthan, and Tamil Nadu showing the widest disparities, where women earn only INR 74.1, 75.5, and 78.4 respectively for every INR 100 earned by a male worker. Conversely, in states like Jammu and Kashmir, Tripura, and Uttar Pradesh, women workers earn more than their male counterparts, with Jammu and Kashmir leading the group.

Currently, various factors contribute to the low participation of women in the workforce. These include lack of education, age of marriage and family planning, pay gap, and societal barriers amongst others. Moreover, certain sectors, particularly male-dominated ones such as manufacturing, construction, transport, and IT/BPO pose obstacles for women entrepreneurs and employees. However, efforts are underway within companies to address this gap through initiatives like promoting diversity, ensuring workplace safety, and offering flexibility. Similarly, the government is also actively involved in bridging this divide. For instance, recent government measures include reducing women employees’ EPF contribution to 8% for the first three years and extending fixed-term employment across all sectors to stimulate job creation.

Speaking on the occasion of International Women’s Day, Sachin Alug, CEO, NLB Services said, “Empowering women isn’t merely a moral obligation; it’s an economic imperative for India’s prosperity. Industry reports indicate that India can achieve a GDP growth rate of 8% provided women account for nearly half of the new workforce set to be created by 2030. Closing the gender disparity in the workforce necessitates collaborative endeavours from Individuals, Industry, Academia, and Government. Employing a gender-inclusive strategy in innovation, technology, and digital education can enhance women’s awareness and engagement. Organizations should promote inclusive work culture and implementing policies that give equal opportunities at the workplace while removing the wage gap. Moreover, it’s crucial to provide women with opportunities for upskilling and re-skilling, particularly in critical sectors like Manufacturing, EV, and technical roles such as data science and artificial intelligence. Increasing women’s participation in traditionally male-dominated sectors is essential for bridging the gender gap and driving India’s goal to become a $7 trillion economy by the end of this decade.”