India’s Global Standing
According to World Bank data, India ranks among the bottom 15 countries globally for female labour force participation (FLPR), with a rate of just 32.7% in 2023. This places India below several South Asian peers, including Pakistan (43.8%) and Bangladesh (44.72%).
While it is usually assumed that the major contributor to positive FLPR is education, skilled women’s labour force participation in urban areas, with a higher literacy rate, is also declining. It is noted that only 38.5% of Indian women with ‘advanced education’ are a part of the labour force, compared to 85.4% of men-a glaring gender gap of 46.9%. India is ranked the 8th lowest globally in this category. The labour force participation rate for women with ‘intermediate education’ is 22.1%, and for those with ‘basic education’ is 31.7%.
The share of women in organisational leadership is also a matter of concern. Nationwide, women currently occupy a mere 12.7% of senior and middle management positions, ranking India among the bottom five globally. Only 6.8% of organisations in India have females as top managers, a stark reminder of the persistent underrepresentation of women and the gender gap in decision-making roles.
Rising Numbers, Lingering Challenges
The FLPR includes women currently engaged in work and those actively seeking employment. Therefore, it also includes a proportion of women who are willing to work but are still unemployed. Further, the unemployment rate for women increased from 2.9% (2022-23) to 3.2% (2023-2024). In contrast, the unemployment rate for men slightly declined from 3.3% to 3.2%. The stagnation and, in some cases, the rise in the unemployment rate for women temper the progress.
Sectoral Distribution and Missed Insights
While the overall FLPR has increased during 2017-18, disaggregated data reveals varying trends, notably in rural areas. The majority of the female labour force, accounting for 64.6%, is employed in the Agricultural sector. The industry and services sector accounts for only 35.8% of female employment, highlighting the sectoral composition behind the increase. The proportion of rural women working as casual labour fell from 31.3% to 18.7% (2023-2024).
The decrease in casual labour is often considered positive as it typically indicates a shift towards more stable and secure forms of employment, such as regular-pay jobs. However, the data suggests otherwise. The proportion of women employed in regular wage or salaried occupations has also decreased, albeit modestly. Instead, there has been a rise in self- employment majorly comprising unpaid and own-account workers.
This raises concerns about disguised unemployment, where women may appear economically active but lack meaningful or suitably compensated jobs. While there could be a visible increase in participation rates, the occupational shift may have minimal impact on women’s financial independence or job stability.
Gender Gaps in Workplace Representation
Even when women enter the workforce, they face significant underrepresentation across the professional pipeline, with men generally favoured in recruitment and retention. Gender Parity Index (GPI) 2.0 Report 2022, focusing on Gender Parity in the corporate sector in India, highlights that only 35% of organisations achieve gender parity in pay, highlighting a persistent mismatch between genders.
Furthermore, 42% of organisations lack ‘Back to Work’ policies, a concerning increase from 28% in the previous GPI 2017-18. Moreover, men continue to outnumber women at every organisational level. Women often navigate ‘hyper- fixated’ timelines dictated by societal and biological expectations, further complicating their career progression.
Moving Forward: A Holistic Approach
Despite the rising FLPR in India, social norms continue to act as significant barriers. In many families, women working is often perceived as a sign of male inadequacy, and societal expectations reinforce the notion that their primary duties lie at home. This deep-rooted mindset is both a rural and urban phenomenon.
However, it is more evident in rural areas, where the likelihood of women participating in the labour force decreases as household income increases. Additionally, unpaid care work, lack of access to healthcare, and societal resistance to changing gender roles further hinder women’s willingness and participation. Policymakers must address these structural challenges, shifting the focus from viewing FLPR through a social lens to an economic one.
To encourage women’s active inclusion, comprehensive strategies are essential. In rural areas, creating a ‘pull’ factor through non-agricultural jobs in low-skilled manufacturing or service- oriented industries can help draw women into the workforce. In urban settings, improving working conditions, reducing social inequalities, and increasing social security benefits can enhance participation.
Addressing critical barriers like childcare and homemaking responsibilities through targeted incentive mechanisms and support programs can sustain women’s workforce engagement, especially during life stages like childbirth. By adopting an inclusive approach that considers intersections of gender with community, class, and other factors, India can build a more equitable and diverse labour market.
The upward trend in India’s FLPR marks a step in the right direction, but it is not without its caveats. The path forward requires not only policy changes but also a cultural shift that truly values and supports women’s contributions to the economy.
—The author, Manika Malhotra Jain, is a Research Associate & Coordinator at Policy Perspectives Foundation, a non-profit and apolitical think-tank on matters of national interest.