Care Economy in India: Budget 2026, ASHA & Anganwadi Workers and Gendered Care Work

The Union Budget 2026-27 proposes to build a ‘strong care ecosystem’ by training 1.5 lakh multiskilled caregivers in geriatric, core care and allied skills under National Skills Qualification Framework (NSQF).

• However, it overlooks over 5 million women workers—including ASHA and Anganwadi workers—who sustain India’s welfare system but remain classified as “volunteers” rather than formal employees.

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About the Care Economy

• Definition: The Care Economy comprises economic activities and services that address the physical, emotional, and social needs of individuals—particularly children, the elderly, the sick, and persons with disabilities—and is increasingly recognised as a critical pillar of human development and social protection.
• Paid Care Work: Includes formal and remunerated services delivered by professionals such as doctors, nurses, caregivers, childcare providers, and domestic workers within the health, education, and social welfare sectors.
• Unpaid Care Work: Refers to non-remunerated caregiving and domestic tasks, largely performed by women within households, such as childcare, elder care, cooking, and household management, which remain largely invisible in GDP calculations and national accounting systems.
• The Indian Model of Care Provision: India has historically relied on a community-based “volunteer” model to deliver welfare services through workers such as Accredited Social Health Activists (ASHAs) and Anganwadi Workers (AWWs) under programmes like Integrated Child Development Services and National Health Mission.
  • While this approach enabled large-scale grassroots service delivery at low fiscal cost, it has also institutionalised the undervaluation and informalisation of care labour by treating it as social duty rather than professional work.

Key Statistics on the Care Economy in India

• Time Use Disparity: According to the 2024 Time Use Survey conducted by the National Sample Survey Office, Indian women aged 15-59 spend an average of 140 minutes per day on unpaid caregiving, whereas men in the same age group contribute only 74 minutes.
• Workforce Scale: India’s frontline health and nutrition programs are managed by approximately 10.4 lakh (1.04 million) ASHA workers and over 25 lakh (2.5 million) Anganwadi Workers and Helpers.
• Economic Contribution: Research suggests that if unpaid care work were assigned a monetary value based on minimum wages, it would contribute roughly 15% to 20% of India’s Gross Domestic Product (GDP).

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Need for a Robust Care Economy

• Demographic Transition: India is witnessing an increase in its elderly population. A formal care economy is essential to provide specialized Geriatric Care (care for the elderly) as traditional joint family structures evolve into nuclear units.
  • 12% of India’s population comprises elderly individuals, a proportion projected to rise to 319 million by 2050.
• Unlocking Female Labour Force Participation (FLFP): By providing affordable, institutional childcare through Creches, the state can reduce the “double burden” of domestic work on women, allowing them to join the formal workforce—a vital component for national economic growth.
• Human Capital Investment: High-quality intervention in Early Childhood Care and Education (ECCE) ensures that the next generation is healthier and more productive, leading to long-term national development and a more capable workforce.

Challenges & Concerns that need to be Tackled

• The ‘Volunteer’ Paradox and Labor Injustice: India’s welfare architecture relies on a massive workforce that is legally “invisible.”
  • Status vs. Skill: Approximately 3.5 million ASHA and Anganwadi workers are designated as “volunteers” or “honorary workers.” 
    • This label dismisses their highly skilled medical and educational work as “social service,” preventing them from being recognized as formal workers.
  • The Honorarium Gap: Instead of a legal Minimum Wage, these workers receive small “honorariums.” 
    • In 2024–25, protests revealed that many ASHAs earn as little as ₹2,000–₹3,500 in fixed incentives monthly, which is far below the cost of living.
  • Security Deficit: Because they aren’t “employees,” they are excluded from Employees’ Provident Fund (EPF), paid maternity leave, and pension schemes, leaving them financially stranded in old age.
• Invisibility and the “Care Penalty”: Care work is frequently uncounted in economic planning because it does not generate a direct bill or receipt.
  • GDP Exclusion: A homemaker working 10–12 hours daily contributes to national stability and human capital, yet this labor is absent from GDP calculations.
  • Gendered Time Poverty: According to the 2019 Time Use Survey, Indian women spend 16.4% of their day on unpaid domestic work, while men spend just 1.7%. 
    • This disparity creates “time poverty,” where women have no time left for self-care, education, or career growth.
  • Social Norms: Care is often viewed as a “natural female trait” rather than a technical profession. 
    • This leads to the “Care Penalty,” where even professional care roles are low-paid because they are seen as an extension of household chores.
• Infrastructure and Investment Gaps: The lack of physical care facilities forces the burden back onto the individual household.
  • The Childcare Crisis: Inadequate crèches and overstretched Anganwadi centers force many women to exit the Female Labour Force Participation (FLFP) pool.
  • The Aging Population: India’s demographic shift means the country requires an estimated $4.8–$8.4 billion investment by 2030 in senior living and geriatric infrastructure to meet rising demand.
  • Mental Health Neglect: Chronic underinvestment in mental health infrastructure undermines general workforce productivity and social resilience.
• Policy Inconsistency and Measurement Deficits: There is a disconnect between new government goals and the treatment of existing workers.
  • The Skilling Gap: While the Union Budget 2026-27 focuses on training a new cadre of caregivers, it fails to provide a “Bridge Course” or pathway for existing workers (like ASHAs) to get NSQF certifications and higher pay.
  • Data Infrequency: While the Time Use Survey was a milestone, such data collection is infrequent. 
    • Without regular, gender-disaggregated data, care work remains a “blind spot” in economic planning.
  • Fiscal Neglect: While the Gender Budget rose to 8.86% in FY 2025–26, critics argue this is largely due to better “re-classification” of old schemes rather than fresh, targeted spending on the Purple Economy.
• The Legal Vacuum: India currently lacks a dedicated national policy that treats care as a public good.
  • Judicial Recognition vs. Legislative Silence: High Courts (such as Madras and Delhi) have begun recognizing a homemaker’s non-financial contribution as vital to family assets. 
    • In Kannaian Naidu vs Kamsala Ammal (2023), the court held that household labor entitles women to an equal share of property.
  • Lack of Statutes: Despite these court rulings, there is no federal law that mandates social security or pensions for unpaid caregivers, leaving them without a safety net.

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Initiatives Taken by India

• National Skills Qualification Framework (NSQF): The government is currently aligning caregiver training with national standards to standardize and professionalize the sector.
• Mission Shakti (Palna Scheme): This initiative focuses on setting up Anganwadi-cum-Creches to provide safe, state-supported environments for children while mothers engage in formal employment.
• Pradhan Mantri Shram Yogi Maandhan (PM-SYM): A voluntary and contributory pension scheme intended to provide old-age protection for unorganized workers, including those in the care sector.
• Ayushman Bharat Extension: The government recently extended health insurance coverage under the Pradhan Mantri Jan Arogya Yojana (PM-JAY) to all ASHA workers, Anganwadi workers, and helpers.

Global Best Practices & Global Initiatives

• The Global Foundation- Beijing Platform for Action (1995): This was the first major international agreement to label unpaid domestic work as a serious economic issue.
  • Making Work Visible: It pushed countries to use Time-Use Surveys to track how much work women do for free at home.
  • Sharing the Load: It introduced the idea that care shouldn’t just be a “woman’s job.” Instead, it should be shared between men and women, and supported by the government and the market.
• The International Labour Organization (ILO) Standards: The ILO treats caregiving as a professional and productive activity that deserves legal protection.
  • The “5R” Roadmap: This is the gold standard for fixing the care economy:
    • Recognize: Count unpaid work in national statistics.
    • Reduce: Use technology and infrastructure to make chores easier.
    • Redistribute: Shift the burden from women to the state and men.
    • Reward: Ensure fair pay and benefits for professional caregivers.
    • Represent: Allow care workers to join unions and have a voice.
  • Convention No. 156 (Family Responsibilities): Protects workers from being fired or treated poorly just because they have to care for a child or elderly parent.
  • Convention No. 183 (Maternity Protection): Guarantees that pregnant workers get time off, health care, and job security. It teaches that raising the next generation is a society-wide duty, not just a private problem.
• United Nations (UN) Initiatives: The UN views the care economy as a bridge to Gender Equality and Economic Growth.
  • The Sustainable Development Goals (SDGs):
    • SDG 5.4: Specifically calls for valuing unpaid work through better public services and social laws.
    • SDG 8 & 10: Focus on creating “decent jobs” in the care sector and reducing the gap between the rich and poor caused by “care poverty.”
  • Women’s Empowerment Panel: This group identified that unpaid labor is the #1 “brick wall” stopping women from joining the workforce. They suggest that spending money on care services is a smart growth strategy for any country.
  • UN Women: Advocates for Care-Sensitive Budgeting, which means the government must specifically set aside money for things like nurseries and elderly centers.
• Successful Global Models: Different countries use different “recipes” to manage their care needs effectively.
  • The Nordic Model (Norway & Denmark): These countries treat care as a Public Good, like clean water or roads. 
    • They use tax money to provide top-quality childcare and elderly care for everyone. This results in some of the highest female employment rates in the world.
  • The French “Voucher” System (CESU): France uses a system called CESU that makes it easy for families to hire home help. 
    • The government tracks these “vouchers” to make sure the workers get their pension and health insurance, preventing the “informal” or hidden work trap.

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Way Forward

• Formal Recognition and Professional Dignity: The first step is to stop calling professional health and nutrition services “volunteering.”
  • From “Honorariums” to Salaries: We must replace small “thank you” payments with a National Floor Minimum Wage. This ensures every worker has enough to live on.
  • Legal Worker Status: Frontline staff should be made permanent employees. 
    • This is backed by the 2025 Supreme Court ruling (Dharam Singh vs State of U.P.), which stated that if the government needs a job done continuously, it cannot keep that worker “temporary” forever.
  • Counting the Invisible: Governments must use Time Use Surveys and “Satellite Accounts” to put a price tag on unpaid chores. As the Beijing Platform for Action suggests: if you don’t measure it, you won’t budget for it.
• Skilling and Career Growth: Instead of just hiring new people, we should help the millions of women already doing the work to move up.
• • The “Bridge” Approach: Current ASHAs and Anganwadi workers should get Bridge Courses and Recognition of Prior Learning (RPL) certifications. 
    • This allows their years of experience to count as a professional degree, letting them move into higher-paying specialized roles.
  • Mobility: Creating a clear “career ladder” turns a dead-end “volunteer” role into a lifelong professional path.
• Care as “Hard” Infrastructure: We need to change how we think about the money spent on care. It isn’t “welfare”; it’s an investment in the economy.
  • Core Infrastructure: We should fund childcare centers, eldercare, and disability support with the same urgency as we build roads or power plants.
  • Care-Sensitive Budgeting: Public budgets should specifically show how much is being spent on care and how it helps women. This aligns with UN Women strategies to boost economic productivity.
• Redistribution- Sharing the Load: Care work is a shared societal duty, not a “women-only” burden.
  • Sharing with Men: Policies like paid parental leave for both parents and flexible work hours help men take an equal role at home.
  • Sharing with the State: Expanding the Mission Shakti (Palna) scheme for affordable creches allows women to stay in the workforce, helping India reach its Viksit Bharat 2047 goals. This is a core part of SDG 5.4.
• Resilience and Protection: The care system must be strong enough to handle modern-day shocks.
  • Safety Nets: Every care worker—including domestic help—needs social security, health insurance, and pension plans to protect them as they age.
  • Climate and Crisis Planning: When a pandemic or a climate disaster hits, the burden of care at home sky-rockets. We must build public care systems that can absorb these shocks so women aren’t forced to quit their jobs to take care of family during crises.

Conclusion

Recognising care work is essential not only for better welfare delivery but also for transforming unequal gender relations in society. Unless unpaid and underpaid care labour is acknowledged, reduced, redistributed, and rewarded, substantive gender equality in India will remain incomplete.

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