Daily News Analysis

Women Powering India's Economic Transformation

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As India charts its course towards becoming a Viksit Bharat (Developed India) by 2047, women are emerging as a central force driving the country’s economic transformation. Their active participation in the workforce, entrepreneurship, and access to finance is reshaping India's growth story. Empowering women is not only a moral imperative but also a strategic move to unlock the nation's full economic potential.

How Women Are Powering India’s Economic Transformation

1. Increased Workforce Participation

  • Workforce participation among Indian women has significantly risen from 22% in 2017-18 to 40.3% in 2023-24. This increase is a reflection of growing economic opportunities for women across the country.

  • The unemployment rate for women has also dropped, from 5.6% to 3.2%, indicating both an increase in job creation and the growing integration of women in the economy.

  • Rural female employment has surged by an impressive 96%, while urban female employment has grown by 43%, signaling a rise in opportunities for women in both rural and urban areas.

  • Female graduate employability has risen from 42% in 2013 to 47.53% in 2024, while the Worker Population Ratio (WPR) for women with postgraduate and higher qualifications grew from 34.5% in 2017-18 to 40% in 2023-24.

2. Shift Towards Women-Led Development

  • The gender budgets allocated by the government have surged by 429% over the last decade, from Rs 0.85 lakh crore in 2013-14 to Rs 4.49 lakh crore in 2025-26. This indicates a systemic shift towards women-led development, where women are not just beneficiaries but active drivers of economic growth.

  • Programs like Startup India have been instrumental in encouraging women entrepreneurship, with 50% of DPIIT-registered startups having at least one woman director.

  • Women-led Micro, Small, and Medium Enterprises (MSMEs) have almost doubled from 1 crore in 2010-11 to 1.92 crore in 2023-24, creating 89 lakh jobs for women between FY21–FY23.

  • Over two crore women have emerged as Lakhpati Didis, benefiting from government schemes like Namo Drone Didi, which help boost their entrepreneurial spirit.

  • Women have become a significant force in financial inclusion, receiving 68% of MUDRA loans worth Rs 14.72 lakh crore, and accounting for 44% of PM SVANidhi beneficiaries among street vendors.

3. Financial Empowerment

  • Financial inclusion has played a pivotal role in enabling women to access credit, start businesses, and improve their livelihoods. Women’s access to finance, such as through MUDRA loans, has empowered them to build financial independence and contribute to the broader economy.

Why Women-Led Development Is Significant

1. Women as Leaders: From Welfare to Agents of Change

  • The shift from viewing women as mere welfare recipients to agents of change is one of the most profound transformations in India’s development narrative. This transition is pivotal in creating a sustainable, inclusive, and self-sufficient economy.

2. Advancing Gender Equality

  • Bridging the gender gap in employment can lead to a potential 30% increase in India's GDP. By providing equal opportunities to women in the workforce, India can significantly enhance its overall economic output and growth trajectory.

  • India currently ranks 131st out of 148 countries in the Global Gender Gap Report 2025, signaling the need for intensified efforts towards gender equality to unlock the true potential of the nation.

3. Inclusive Development

  • Empowering women fosters a more inclusive economy, where the benefits of growth are shared more equitably. Women’s participation in the workforce boosts productivity, enhances innovation, and ensures that more voices are heard in decision-making processes, both in the corporate and governmental spheres.

4. Societal Change

  • Empowering women leads to meaningful change at multiple levels. It provides women with autonomy, access to opportunities, and the ability to influence both personal and professional decisions. This not only transforms the individual but also ripples out to benefit families and communities, fostering an environment of social progress.

Challenges to Women-Led Development in India

Despite significant strides, several challenges remain to fully realizing the potential of women-led development in India.

1. Social and Safety Constraints

  • Deep-rooted patriarchy still limits women's decision-making power, while unpaid domestic work continues to burden many women, restricting their ability to participate in the formal economy.

  • Issues such as early marriage, domestic responsibilities, and personal security concerns (India records 51 cases of crime against women every hour) hinder women’s ability to progress in their careers and fully participate in society.

2. Education and Skill Gaps

  • While female literacy has improved, it remains 65.4% according to the 2011 census, below the global average. This limits women's access to high-skill jobs and hampers their economic mobility.

3. Underrepresentation in Governance & Leadership

  • Women remain underrepresented in leadership roles across politics, corporate sectors, and decision-making bodies. India’s women’s representation in Parliament is still well below the global average of 25%, reducing their influence on policies and laws that affect their lives.

4. Digital and Technological Exclusion

  • Many women lack access to technology and digital literacy, further excluding them from participating in the modern, digital economy. Technological exclusion in rural areas is particularly high, limiting women’s opportunities to innovate, access resources, or gain employment in emerging sectors.

5. Workforce Participation Barriers

  • Women continue to face challenges such as unequal pay, the glass ceiling, occupational segregation, and limited representation in formal and high-skilled sectors. Workplace safety remains a major concern, as many women experience harassment, and safety measures at work are often inadequate.

Measures to Mainstream Women in Economic Growth

To further mainstream women in India’s economic growth, targeted interventions are needed across multiple fronts.

1. Childcare & Care Economy

  • Establishing a National Crèche Grid, workplace crèches, and paid maternity leave for women in the informal sector can enhance women’s participation in the workforce. Professionalizing care workers and extending benefits to the informal sector would enable women to retain their jobs while balancing family responsibilities.

2. Infrastructure & Digital Inclusion

  • Gender-responsive budgeting should be mandated in critical sectors like sanitation, transport, and housing. Implementing Digital Saksharta and PMGDISHA programs as part of national infrastructure and rural internet projects will help bridge the digital divide and empower women with the tools they need to succeed in a digital economy.

3. Representation & Governance

  • Gender quotas should be enforced in corporate boards, panchayats, and MSME councils, alongside incentives tied to women’s inclusion in decision-making processes. Capacity building in gender budgeting can further enhance women’s representation in governance.

4. Decentralized Gender Planning

  • Gender Action Plans should be institutionalized at the Gram Panchayat, block, and district levels, with inputs from Mahila Sabhas and SHG networks. This will ensure that women’s voices are integrated into local development planning, financing, and decision-making.

5. Workplace Safety and Empowering Women’s Mobility

  • Building women-friendly infrastructure, creating accessible spaces, and establishing Internal Complaint Committees (ICCs) under the Sexual Harassment of Women at Workplace Act, 2013 will ensure women’s safety at work. Promoting a zero-tolerance culture towards harassment and discrimination in workplaces is critical for their continued participation.

Conclusion

Women are no longer just contributors to India’s economy—they are becoming the backbone of the nation’s progress. From rural enterprises to corporate leadership, women are leading India towards a future where their participation drives growth, innovation, and sustainable development. As Jawaharlal Nehru once said, “The status of a nation can be judged by the condition of its women.” Empowering women is central to India’s journey towards Viksit Bharat 2047, and by embracing Nari Shakti (women’s strength), India is paving the way for a more inclusive, prosperous, and equitable society.

 

 

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