Unlocking Women’s Potential: A Key to Boosting India’s Economy

The Lok Sabha Elections 2024 have brought to light the crucial role that employment and inflation play in influencing voters’ decisions. The India Employment Report (IER) 2024, published by the Institute for Human Development and the International Labour Organization, sheds light on the complexities of India’s job market. While the unemployment rate has decreased to 4.1% in 2022, from a high of 5.8% in 2019, the country still faces significant challenges in underemployment. Despite this gloomy picture, a positive trend has emerged: a steep increase in female labor force participation rate (LFPR), particularly in rural India. This upward trend, especially the 12% rise during 2018-22, signifies an untapped reservoir of potential for employment generation. Women have historically been engaged in unpaid family labor, with a staggering 36.5% of females employed as unpaid family workers in 2022 compared to 9.3% of males. This disparity, particularly stark in rural areas, indicates a significant opportunity to channel this untapped potential into paid employment. However, generating employment opportunities for women is not without its complexities. Gendered preferences for employment and societal norms often restrict women to traditional occupations, even if they offer low income. A study conducted in Bhuj, Gujarat, found that women preferred traditional home-based work like embroidery and beading due to flexibility and the ability to work from home, despite limited earnings. A significant 30% of women felt trapped in these traditional roles due to a lack of alternative opportunities. The lower rise in female LFPR in urban areas compared to rural areas, as highlighted in the IER 2024, underscores the need for more suitable and rewarding opportunities for women in urban settings. Access to capital and societal pressures often hinder women from starting their own businesses, leading them to remain confined to traditional occupations. Empowering women through self-help groups (SHGs) and federations can be a potent solution. SHGs can provide training in new skills, while federations can directly connect women to markets, enabling them to secure better returns for their work. The Kutch Mahila Vikas Sangathan (KMVS), a local non-profit organization, is working towards this end in the region. Traditional occupations, while accepted by society and fulfilling women’s immediate needs for managing household work and earning, often fail to address their strategic gender needs. Strategic gender needs focus on challenging regressive gender norms and empowering women to make their own choices. Women’s participation in male-dominated workspaces can face resistance due to competition. Therefore, generating new opportunities in neglected sectors is crucial. A study examining the relationship between irrigation sources and women’s empowerment in villages of the Upper Gangetic Plains of Uttarakhand and Uttar Pradesh revealed a positive correlation. Women’s wages in farm labor work and decision-making abilities increased with the expansion of less dominant irrigation sources. Expanding canal irrigation during the summer slump season, when male interest in agriculture is low, has also positively impacted female empowerment. The introduction of non-conventional irrigation methods, such as ponds and tube wells, has led to women initiating farming, pisciculture, and other agricultural ventures, particularly in arid and monocropped regions of West Bengal. These women are part of a women-led water users’ association supported by the West Bengal Accelerated Development of Minor Irrigation Project. The availability of work close to home has reduced female migration and enhanced family welfare. While men assist with heavy tasks, women have found ways to circumvent gender norms by using hired tractors for ploughing and hiring labor for netting in ponds. Increased market interaction empowers women to challenge societal norms and reduce their dependence on male family members. A more vibrant water market in the Upper Gangetic Plains was associated with increased agency for women in influencing the purchase of agricultural inputs. The earnings of both men and women contribute to family income and welfare, emphasizing the need to develop income-generating opportunities that don’t drive men out of the workforce. Creating work opportunities close to home can significantly boost family income and enhance women’s position within the family. A woman in West Bengal, empowered by her earnings, was able to lend money to her husband for agricultural inputs, demonstrating the impact of women’s economic independence. A study in Kolkata’s slums highlighted the role of women’s participation in reducing economic vulnerability and improving resilience during the COVID-19 pandemic. While work opportunities near home are beneficial, participation in work outside the home is crucial for women’s empowerment. Developing a better work environment for women, including safety, basic facilities, and public policy mandates for small- and medium-sized businesses to provide these facilities, is essential for long-term success. Focusing on improving female LFPR can lead to enhanced overall employment and family income. Public policy should focus on providing greater access to resources and markets for women in rural areas, while mandating better facilities in urban workplaces. Collectivizing women and federating collectives in both rural and urban India can be transformative. The Lakhpati Didi programme, which aims to increase an SHG woman’s annual income to ₹1 lakh or above, is a promising initiative in this direction. By unlocking women’s potential and creating opportunities for their participation in the workforce, India can take a significant step towards economic growth and social progress.

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