Women’s Employment in India: Challenges, Policies, and Global Lessons

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Introduction

Indian mythology and early traditions often highlighted the role of women as active contributors to society and knowledge. Figures such as Goddess Shakti symbolised strength and creation, while scholars like Gargi and Maitreyi in the Vedic period were recognised for their intellectual contributions. These references indicate that the idea of women as partners in progress has deep historical roots. However, the present reality reflects a mismatch, with women’s economic participation remaining low compared to global standards.

India’s economy, currently valued at $4.19 trillion, has secured a place in the global growth story and is on track to become the world’s third-largest economy. Yet, this progress faces challenges from both external disruptions, such as proposed U.S. tariffs on Indian exports, and internal structural constraints. One of the most significant among these is the underutilisation of women in the labour force. Addressing this gap is not only a matter of equity but also a strategic requirement for sustaining growth, enhancing competitiveness, and realising the benefits of the demographic dividend.


Historical Women Participation in Workforce

Ancient India

  • In the early Vedic period (1500–1000 BCE), women enjoyed relatively higher social status and actively participated in education, intellectual debates, and cultural life. Notable examples include Gargi Vachaknavi and Maitreyi, who were respected scholars.

  • Women were engaged in agriculture, animal husbandry, weaving, and food processing.

  • Goddesses such as Shakti and Saraswati symbolised women’s role in creation, knowledge, and prosperity.

  • By the later Vedic period (1000–500 BCE), women’s role became more domestic, though they continued to contribute in agriculture and crafts.

Medieval India

  • Women in agrarian societies worked in sowing, harvesting, animal rearing, and allied activities.

  • They contributed to household-based crafts like spinning, weaving, pottery, embroidery, and food preparation.

  • Certain women held political and administrative power, such as Razia Sultan in the 13th century and Rani Durgavati in the 16th century.

  • Regional variations existed — for example, in parts of South India, women managed landholdings and estates.

Colonial Period (18th–20th Century)

  • Traditional cottage industries and handicrafts declined with the influx of British industrial imports, displacing many women artisans.

  • Women entered plantations (tea, coffee, indigo) and industries such as textile mills in Bombay, jute mills in Bengal, and coal mines in eastern India.

  • Women formed a significant portion of the agricultural labour force during this period.

  • Professional opportunities opened up gradually, and women began to work as teachers, nurses, and clerks in urban areas.

  • Women also played an active role in the freedom struggle under leaders such as Sarojini Naidu, Kasturba Gandhi, and Annie Besant.

Post-Independence Era (1950s–1970s)

  • The Constitution of India (1950) guaranteed equality and non-discrimination in employment.

  • Women increasingly joined professions such as teaching, nursing, medicine, social work, and public administration.

  • In rural areas, women continued to participate in agriculture, often as unpaid family labourers.

  • Community development programmes and cooperatives encouraged women’s participation in rural industries and local development.

Economic Liberalisation (1991 onwards)

  • Post-1991 reforms expanded opportunities in IT, banking, telecommunications, retail, and hospitality, leading to greater participation by urban educated women.

  • Rural women engaged in self-help groups (SHGs), microfinance programmes, handicrafts, and small-scale entrepreneurship.

  • Women increasingly joined law, engineering, defence services, and corporate management.

  • Export-oriented industries, especially textiles and garments, employed large numbers of women workers.

Contemporary Era (2000s–present)

  • According to the Periodic Labour Force Survey (PLFS), India’s female labour force participation rate (FLFPR) has risen from 23.3% in 2019–20 to 41.7% in 2023–24.

  • Women remain engaged across major sectors: agriculture, services, information technology, healthcare, and education.

  • Gig platforms such as Urban Company have created employment opportunities for women in urban service roles.

  • Women have also entered new fields such as the armed forces (permanent commission, fighter pilots), space research (ISRO’s women scientists in Mars Orbiter Mission and Chandrayaan), corporate leadership (CEOs, board members), and sports (Olympic medal winners such as P.V. Sindhu, Sakshi Malik, and Mirabai Chanu).


Current Status

Definition

  • Female Labour Force Participation Rate (FLFPR): The percentage of women (15 years & above) who are either working or actively seeking work, out of the total female working-age population.

Global Context

  • Global FLFPR: 47% (ILO, 2023) vs 72% for men.

  • China: ~60%, among the highest in Asia.

  • Nordic nations: above 70% (Sweden, Norway, Finland).

  • Italy & Greece: low participation linked to slower growth.

Indian Context 

  • FLFPR: 37–41.7% (PLFS 2023–24), up from 23.3% in 2017–18. Still below global average.

  • Worker Population Ratio (WPR): Increased from 22.0% (2017–18) to 40.3% (2023–24).

  • Unemployment Rate (Women): Declined from 5.6% (2017–18) to 3.2% (2023–24).

  • Rural vs Urban Growth: Rural women’s employment nearly doubled (96% rise, 2017–18 to 2023–24); urban women’s employment grew by 43%.

  • Formal Workforce: 1.56 crore women added to the formal sector.

  • Self-employment: 55% of women workers are self-employed compared to 39% of men.

  • Sectoral Distribution:

    • Agriculture & Unpaid Family Work: Still dominant in rural areas.

    • Export-oriented sectors: Textiles, gems, leather, footwear employ ~50 million workers, majority women.

    • Healthcare & Education: Women form ~80% of nurses and ~50% of teachers.

    • IT-BPM sector: Women ~36% of workforce.

  • Public Policy Support: Gender budgets increased by 429% in the last decade.

  • Entrepreneurship: Women entrepreneurs supported through ~70 central and 400+ state-level schemes.


Causes of Unemployment among Women

1. Social and Cultural Barriers

  • Restrictive gender norms limiting women’s mobility and work choices.

  • Early marriage and high female school/college drop-out rates.

  • Social stigma against women in certain professions.

2. Unpaid Care and Household Burden

  • Disproportionate share of childcare, elderly care, and domestic work.

  • Lack of affordable childcare and crèche facilities.

  • Limited flexible work policies to balance family responsibilities.

3. Infrastructure and Safety Constraints

  • Inadequate public transport and last-mile connectivity.

  • Poor sanitation facilities, especially in rural and semi-urban areas.

  • Workplace safety and harassment concerns.

4. Skill and Education Mismatch

  • Limited access to vocational training and digital literacy.

  • Mismatch between rising female education levels and available job opportunities.

  • Rural-urban divide in access to modern skill development programs.

5. Labour Market and Structural Issues

  • Occupational segregation into low-paying and informal jobs.

  • Wage disparity discouraging long-term workforce participation.

  • Informalisation of work with no contracts, social security, or maternity benefits.

  • Decline of labour-intensive industries (e.g., textiles, handicrafts) traditionally employing women.

  • Automation and mechanisation reducing demand for manual female labour in agriculture.

6. Economic and Policy Factors

  • Inadequate gender-responsive labour reforms and implementation gaps.

  • Urban-centric job creation leaving fewer rural employment options.

  • Limited financial inclusion and credit access for women entrepreneurs.

  • Slower expansion of women in gig economy and digital platforms due to technological divide.


Significance of Women Employment

1. Macroeconomic Growth

  • IMF estimates that closing the gender gap could boost India’s GDP by 27% in the long term.

  • Higher female participation expands the labour force, raising potential output and productivity.

  • Greater gender diversity in the workforce contributes to innovation and business efficiency.

2. Global Competitiveness

  • Women’s participation strengthens labour-intensive export sectors such as textiles, apparel, electronics assembly, and handicrafts.

  • Increased female employment helps India integrate better into global value chains.

  • Countries with higher gender parity often attract more foreign direct investment (FDI) due to inclusive labour policies.

3. Demographic Dividend

  • India’s working-age population will peak before 2045; higher women participation is essential to harness this window.

  • Without women in the workforce, a significant part of the demographic dividend remains untapped.

  • Encouraging female employment can prevent the risk of “jobless growth”.

4. Social and Developmental Impact

  • Women’s income contributes directly to poverty reduction and household welfare (nutrition, healthcare, and education).

  • Enhances social mobility, giving future generations greater opportunities.

  • Women’s financial independence strengthens their role in decision-making at household and community levels.

5. Gender Equality and SDGs

  • Women’s employment is central to achieving SDG 5 (Gender Equality) and linked to multiple goals such as SDG 1 (No Poverty) and SDG 8 (Decent Work).

  • Promotes inclusive development by ensuring both men and women contribute equally to the economy.

6. Rural and Urban Transformation

  • Rural women’s employment in self-help groups (SHGs), agriculture, and micro-enterprises drives local economic resilience.

  • Urban women’s participation in IT, healthcare, and services supports knowledge economy growth.

  • Female entrepreneurship fosters grassroots industrialisation and job creation.

7. National Security and Governance

  • Greater women participation in police, armed forces, and administration strengthens institutional capacity.

  • Inclusive governance ensures better policy outcomes, as studies show women leaders focus more on welfare, health, and education.


Legal and Institutional Framework 

Constitutional Safeguards

  • Article 14 – Right to equality before law.

  • Article 15(1) & 15(3) – Prohibits discrimination on grounds of sex; allows special provisions for women.

  • Article 16 – Equality of opportunity in public employment.

  • Article 39(a), 39(d), 39(e) – Right to adequate livelihood, equal pay for equal work, protection of health.

  • Article 42 – Just and humane conditions of work and maternity relief.

  • Article 51A(e) – Fundamental duty to renounce practices derogatory to women.

Key Laws

  • Equal Remuneration Act, 1976 → Ensures equal pay for equal work.

  • Maternity Benefit Act, 1961 (amended 2017) → Provides 26 weeks paid maternity leave.

  • Sexual Harassment of Women at Workplace (Prevention, Prohibition & Redressal) Act, 2013 (POSH Act).

  • Factories Act, 1948 → Safety, welfare, and working hours for women workers.

  • Code on Wages, 2019 → Reinforces equal remuneration provisions.

  • Code on Social Security, 2020 → Extends benefits like maternity, health insurance to gig/platform women workers.

Judicial Support

  • Vishaka v. State of Rajasthan (1997) → Laid down guidelines against sexual harassment at workplace (basis for POSH Act).

  • Air India v. Nargesh Mirza (1981) → Struck down discriminatory service conditions against women.

  • Municipal Corporation of Delhi v. Female Workers (2000) → Maternity benefits extended even to casual/contractual women workers.

Global Commitments

  • ILO Conventions: Equal Remuneration (C100), Discrimination (Employment and Occupation, C111).

  • CEDAW (Convention on the Elimination of All Forms of Discrimination Against Women), ratified by India in 1993.

  • SDG Goal 5 & 8: Gender equality and decent work for all.


Government Initiatives & Schemes for Women’s Employment

1. Entrepreneurship & Financial Inclusion

  • PM Mudra Yojana – Provides collateral-free loans to women entrepreneurs for micro and small businesses.

  • PM SVANidhi – Offers working capital loans to women street vendors to sustain livelihoods.

  • Stand-Up India – Facilitates bank loans for women, SC, and ST entrepreneurs for greenfield enterprises.

  • Start-Up India – Promotes women-led start-ups through funding, incubation, and tax benefits.

  • Promotion of women-led MSMEs – Supports women-owned enterprises with credit, markets, and technology access.

2. Budgetary Support & Self-Reliance

  • Gender Budgeting framework – Ensures targeted fund allocation for women’s development across ministries.

  • Mahila E-Haat digital platform – Provides women entrepreneurs a direct online marketplace to sell products.

  • Support to Training and Employment Programme (STEP) – Trains women in traditional and emerging skills to boost employability.

3. Skill Development & Employability

  • Skill India Mission – Provides vocational training to women across multiple trades for better job opportunities.

  • Digital Literacy Mission – Enhances women’s digital skills for financial inclusion and e-employment.

  • Sector-specific skilling initiatives – Focuses on women’s skill training in textiles, electronics, IT, and healthcare.

4. Welfare & Social Security

  • e-Shram Portal – Registers unorganised women workers to extend social security and welfare benefits.

  • PM Matru Vandana Yojana – Provides maternity benefits to compensate for wage loss and support nutrition.

  • Employees’ Provident Fund Organisation (EPFO) enrollment drive – Expands formal social security coverage for working women.

  • MGNREGS – Provides wage employment with strong participation of rural women in labour-intensive work.

Impact of Initiatives

  • Entrepreneurship – 68% of Mudra loans sanctioned to women; 44% of PM SVANidhi beneficiaries are women; nearly 50% of registered start-ups have at least one woman director (~74,410); women-led MSMEs rose from 1 crore (2010–11) to 1.92 crore (2023–24).

  • Budgetary Support – Gender Budget allocation increased 429% in the last decade, reaching ₹4.49 lakh crore in 2025–26.

  • Skill Development – Employability of female graduates improved from 42% (2013) to 47.5% (2024); women postgraduates’ Work Participation Rate rose from 34.5% (2017–18) to 40% (2023–24).

  • Formal Workforce Inclusion – 1.56 crore women joined EPFO in the past 7 years.

  • Unorganised Sector Protection – 16.69 crore women registered on e-Shram portal.

  • Self-Employment – Share of self-employed women increased from 51.9% (2017–18) to 67.4% (2023–24).

  • MGNREGS Participation – Women contributed ~56% of total person-days in 2023–24.


Challenges in Women’s Employment

  1. Low Labour Force Participation Rate (LFPR)

    • Despite rising education levels, India’s female LFPR remains around 30% (2023–24), among the lowest globally.

  2. Quality of Employment

    • Majority of women are engaged in informal, low-paying, and unskilled jobs, with limited job security or benefits.

  3. Wage Disparity & Gender Pay Gap

    • Women earn 20–30% less than men for similar work across sectors, reflecting persistent discrimination.

  4. Occupational Segregation

    • Women are concentrated in certain “feminised” sectors like textiles, education, and healthcare, with underrepresentation in STEM and leadership roles.

  5. Unpaid Care Work Burden

    • Women spend 4.5–5 hours daily on unpaid domestic and care work, compared to less than 1 hour by men, limiting their workforce participation.

  6. Skill Mismatch

    • Lack of access to advanced skilling in emerging sectors (AI, EVs, green energy, digital economy) reduces employability.

  7. Safety & Workplace Harassment

    • Inadequate implementation of POSH Act (2013) and unsafe transport/work conditions discourage women from formal sector jobs.

  8. Cultural & Social Barriers

    • Patriarchal norms, early marriage, and mobility restrictions continue to hinder women’s economic participation.

  9. Limited Access to Credit & Markets

    • Women entrepreneurs, especially in rural areas, face difficulties in collateral requirements, digital access, and supply chain integration.

  10. Post-Maternity Workforce Dropout

    • A significant proportion of women exit the workforce post-childbirth due to inadequate maternity leave, crèche facilities, and flexible work options.


Way Forward for Enhancing Women’s Employment

  1. Boosting FLFPR (Female Labour Force Participation Rate)

    • Encourage women’s participation in sunrise sectors (AI, green energy, EVs, gig economy).

    • Expand flexible work models (remote jobs, part-time opportunities) to retain women in the workforce.

  2. Bridging the Gender Pay Gap

    • Enforce equal pay for equal work under existing labour codes.

    • Make gender pay disclosures mandatory for large firms to ensure transparency.

  3. Expanding Skilling & Reskilling

    • Tailor Skill India, PMKVY, Digital Literacy programmes to emerging technologies.

    • Promote women’s training in STEM, entrepreneurship, and leadership roles.

  4. Reducing Unpaid Care Work Burden

    • Invest in affordable childcare, community crèches, and elder care facilities.

    • Promote shared domestic responsibility through awareness campaigns and workplace policies.

  5. Strengthening Safety & Workplace Inclusivity

    • Strict enforcement of POSH Act (2013) and provision of safe transport and hostels for women workers.

    • Encourage gender-sensitive HR practices and inclusive corporate governance.

  6. Improving Access to Finance & Markets

    • Expand women’s access to collateral-free credit, digital banking, and e-commerce platforms.

    • Strengthen Self-Help Groups (SHGs) linkages with formal supply chains.

  7. Policy & Legal Strengthening

    • Widen coverage of maternity benefits beyond the organized sector.

    • Institutionalize Gender Responsive Budgeting across all ministries.

  8. Changing Social Norms

    • Mass campaigns to challenge stereotypes, delay child marriage, and encourage higher female education.

    • Incentivize families and employers for promoting women’s continued employment.

  9. Formalization of Women’s Work

    • Recognize women’s contribution in the informal sector and care economy through policy support.

    • Expand coverage of social security schemes (EPFO, e-Shram, PMJJBY) for women workers.


State-Level Initiatives Supporting Women’s Employment

  • Karnataka’s Shakti Scheme: Free bus travel for women has increased mobility by 40%, improving access to jobs, markets, and educational institutions.

  • Rajasthan’s Indira Gandhi Urban Employment Guarantee Scheme: Generated over 4 crore person-days of work (65% women), creating opportunities in sanitation, greening, and care work.

  • Kerala’s Kudumbashree Mission: A women’s self-help group movement empowering women through microfinance, entrepreneurship, and skill development, helping them enter formal and informal job markets.

  • Tamil Nadu’s Puthumai Penn Scheme: Provides financial aid to girl students in higher education, reducing dropout rates and improving employability of women graduates.

  • Odisha’s Mission Shakti: Federates 70 lakh women into SHGs, promoting collective entrepreneurship, market linkages, and stronger bargaining power in the labour market.

  • Madhya Pradesh’s Ladli Behna Yojana: Offers direct financial transfers to women, increasing household income security and enabling women to invest in small businesses or skill training.


Global Best Practices for Women’s Employment

  • United States: During WWII, women’s workforce participation was boosted by government-supported childcare and equal pay initiatives, laying the foundation for long-term inclusion.

  • China: Post-1978 reforms with universal education and state-backed childcare significantly increased female workforce participation.

  • Japan: Policies under “Womenomics” enhanced women’s participation in the workforce and contributed to overall economic growth.

  • Netherlands: Legal recognition of part-time jobs with equal benefits allowed women greater flexibility while ensuring social security.

  • Sweden: Comprehensive parental leave, subsidized childcare, and flexible working hours have strengthened women’s participation in the workforce.

  • Denmark: Gender equality laws, state-supported childcare, and work-life balance initiatives have supported women’s entry and retention in various sectors.


Conclusion

India’s gender equality progress remains a concern, reflected in its Global Gender Gap Index 2025 ranking of 131st out of 148 countries, highlighting gaps in economic participation, political empowerment, and safety. Despite gains in education and employment schemes, women continue to face structural barriers that limit their full participation in the workforce.

The Parliamentary Committee on Empowerment of Women has repeatedly recommended measures to improve women’s workforce participation, including strengthening legal protections, promoting equal pay, enhancing skill development programs, and ensuring safe workplaces and transport facilities. Alongside WEF and UN recommendations, these measures emphasize the need for targeted policies and structural reforms. Implementing such recommendations is crucial for leveraging India’s demographic dividend, boosting economic growth, and achieving inclusive development.



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