Women are emerging as the backbone of India’s economic transformation. Rising workforce participation, growing entrepreneurial ventures, and increasing leadership roles are shaping India’s march towards Viksit Bharat by 2047.

Recent Trends in Women’s Labour Participation

• Workforce Participation: According to the Periodic Labour Force Survey (2017–2024), women’s workforce participation rate nearly doubled from 22 percent to 40.3 percent; unemployment fell from 5.6 percent to 3.2 percent.
• Rural and Urban Dynamics: Rural female employment rose by 96 percent, compared to 43 percent in urban areas.
• Education and Employability: Employability of women graduates rose to 47.53 percent (2024) from 42 percent (2013); for postgraduates, from 34.5 percent to 40 percent.
• Formalisation of Workforce: Over 1.56 crore women entered the formal sector through Employees’ Provident Fund Organisation payrolls; 16.69 crore women registered on the e-Shram portal.
  • The e-Shram portal was launched by the Ministry of Labour and Employment in August 2021 to create a national database of unorganised sector workers. It aims to improve their access to social security schemes, welfare benefits, and policy support.

Women as Entrepreneurs and Job Creators

• Expanding Entrepreneurship: Women-owned establishments grew from 17.4 percent (2010–11) to 26.2 percent (2023–24); women-led micro, small and medium enterprises doubled to 1.92 crore.
• Employment Generation: Women-led enterprises created 89 lakh jobs (FY21–FY23); Boston Consulting Group estimates 150–170 million new jobs by 2030.
• Self-Employment Surge: Share of female self-employment rose from 51.9 percent (2017–18) to 67.4 percent (2023–24).
• Start-Up Ecosystem: Nearly 50 percent of Department for Promotion of Industry and Internal Trade registered startups have a woman director; leaders like Falguni Nayar (Nykaa) and Kiran Mazumdar Shaw (Biocon) showcase global-scale success.

Government Initiatives for Financial Inclusion and Independence of Women

• Pradhan Mantri Jan Dhan Yojana (PMJDY, 2014): Provides universal bank accounts with access to overdraft facilities and direct benefit transfers, bringing millions of women into the formal financial system.
• Pradhan Mantri Mudra Yojana (PMMY, 2015): Provides microfinance under Shishu, Kishor, and Tarun categories. In the financial year 2023–24, 4.24 crore women received loans worth 2.22 lakh crore rupees, enabling small-scale entrepreneurship.
• Stand-Up India Scheme (2016): Offers collateral-free loans between ten lakh and one crore rupees to women and disadvantaged entrepreneurs, encouraging business ownership.
• Mahila E-Haat (2016): An online marketplace that connects women entrepreneurs directly with buyers, enhancing market visibility.
• Start-up Village Entrepreneurship Programme (SVEP, 2016): Supported 3.13 lakh rural enterprises by October 2024, boosting self-employment in villages.
• Women Entrepreneurship Platform (2018, NITI Aayog): Facilitates mentorship, credit access, and business support to women-led enterprises.
• Pradhan Mantri Street Vendor’s Atmanirbhar Nidhi (PM SVANidhi, 2020): Provides microloans to street vendors. By December 2024, 30.6 lakh women vendors received 5,939.7 crore rupees in support.
• Udyam Registration (2020): Promotes formalisation of businesses, with forty percent of micro, small and medium enterprises now owned by women.
• Flagship Schemes (2023 onwards):
• • Lakhpati Didi Yojana: Targets two crore rural women to achieve an annual income of one lakh rupees.
  • Namo Drone Didi: Provides training in agricultural drone technology, fostering digital and technological empowerment of women farmers.

Global Initiatives and Best Practices

• Bangladesh – Grameen Bank Model: Microcredit to women revolutionised rural entrepreneurship.
• Rwanda – Gender-Responsive Budgeting: All policies screened for gender impact; resulted in high female labour participation.
• OECD Women Entrepreneurship Platform: Cross-country mentoring, networking, and innovation support.
• World Bank Women Entrepreneurs Finance Initiative (We-Fi): Mobilises public-private capital for women-led small businesses.
• United Nations Women’s Empowerment Principles (WEPs): Corporate adoption of workplace gender equality standards.

Importance of Women’s Participation

• Economic Growth and National Development: Directly boosts Gross Domestic Product (GDP) and productivity, crucial for achieving Viksit Bharat@2047.
• • Helps harness India’s demographic dividend by mobilising nearly half of the population’s untapped talent and skills.
  • McKinsey Global Institute (2015) estimated that India could add $770 billion to its GDP by 2025 with gender parity in workforce participation.
• Social Transformation and Equality: Enhances household well-being through better decision-making, higher income security, and improved family resilience.
  • Reduces gender disparities in employment, wages, and asset ownership.
  • Generates intergenerational benefits in education, health, and nutrition, empowering future generations.
• Global Commitments and International Standing: Advances Sustainable Development Goal (SDG) 5 – Gender Equality and SDG 8 – Decent Work and Economic Growth.
  • Reinforces India’s commitment to the Beijing Declaration and Platform for Action (1995), a global agenda for women’s empowerment.
  • Strengthens India’s role as a champion of gender-inclusive growth in multilateral platforms like G20, BRICS, SCO, and Global South dialogues.
• Governance and Inclusive Policy-making: Greater women’s participation leads to more inclusive and welfare-oriented policies, especially in education, health, sanitation, nutrition, and social protection.
  • Women leaders in Panchayati Raj Institutions have demonstrated higher focus on issues of water, health, and education, proving the impact of representation.
• Workforce and Labour Market Dynamics: Expanding female labour force participation addresses skill shortages in India’s rapidly growing economy.
  • Helps diversify workplaces, leading to higher innovation, better corporate governance, and improved productivity.
  • Reduces reliance on male-dominated sectors, balancing structural transformation in the economy.
• Cultural and Ethical Dimensions: Promotes dignity, autonomy, and freedom of choice for women, making development more humane and just.
  • Challenges patriarchal norms and stereotypes, shifting society towards greater equality.
  • Ensuring women’s equal participation reflects constitutional values of justice, equality, and fraternity under the Preamble and Fundamental Rights.

Challenges

• Socio-Cultural Barriers: Patriarchal attitudes restrict mobility and leadership opportunities.
  • Disproportionate unpaid care work limits women’s workforce participation.
• Structural and Workplace Issues: Women overrepresented in informal, low-paying, insecure jobs.
  • Lack of safe transport, sanitation, childcare, and workplace safety.
• Financial and Skill Gaps: Women receive less than 7 percent of institutional micro, small and medium enterprise credit.
  • Inadequate access to mentorship, professional networks, and digital skills.

Way Forward

• Financial Empowerment: Create gender-responsive venture funds, angel networks, and credit guarantees.
  • Expand microfinance and cooperative banking tailored for women.
• Skill Development: Train women in artificial intelligence, financial technology, e-commerce, and green technologies.
  • Expand vocational and digital literacy programmes.
• Digital Empowerment: Strengthen women’s access to artificial intelligence, digital payments (UPI), e-commerce platforms, and online skilling, ensuring their full participation in the digital economy and future-ready job markets.
• Institutional Strengthening: Ensure gender audits in startups and micro, small and medium enterprises.
  • Strengthen incubators and accelerators with women-focused mentorship.
• Societal and Legal Reforms: Enforce workplace safety and anti-harassment laws.
  • Promote social awareness campaigns to dismantle stereotypes.
  • Expand childcare and crèche facilities to ease work–family balance.
• Learning from Global Best Practices: Adopt microfinance success models like Bangladesh’s Grameen Bank.
  • Mainstream gender budgeting like Rwanda.
  • Encourage corporate adoption of United Nations Women’s Empowerment Principles.

Conclusion

Strengthening women’s economic role fulfils the Directive Principle of gender equality, advances Sustainable Development Goals 5 and 8, and aligns with India’s vision of a five trillion-dollar economy and Viksit Bharat by 2047. 

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