Missing Ingredient in India’s Growth

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India’s GDP is growing at an impressive rate of 8%. Key sectors like manufacturing, services, and infrastructure contribute to an overall worker population ratio (WPR) of 53.4%, according to MOSPI data for December 2025. These numbers are striking, but we should consider how much stronger they could be if a significant part of the workforce were not sidelined. A large section of the population remains out of the labor force.

The female worker population ratio, which looks at the number of employed individuals aged 15 and older, increased from 31.6% in July 2025 to 33.6% in December 2025, as per the PLFS annual report from MOSPI. The labor force participation rate for females (FLFPR) rose from 33.3% to 35.3% in that same period. The unemployment rate stands at 4.8% for both males and females aged 15 and over. For females, this rate decreased from 5.1% to 4.9% during 2023-2024. In contrast, the LFPR for men remains high, around 77.1% to 77.8%. For women, it is between 33.3% and 35.3%, showing a gap of 42% to 45%. This gap highlights a long-standing inequality.

The concern is whether women are working less or if their contributions are simply not reflected in the GDP. Approximately 90% of unpaid domestic work is performed by women and is not factored into GDP calculations. The FLFPR during 2018-2019 was around 24%, which rose significantly after the COVID-19 disruptions; this increase appears to be driven by necessity.

While female literacy in India is rising, it has not led to a corresponding increase in women’s labor-force participation. Kerala serves as a case in point: despite its high literacy rate, its FLFPR is low. Although more women are educated than ever, FLFPR remains low because education raises the desire for stable, salaried jobs, while the economy still mainly creates low-paid, informal, or male-dominated positions.

Social norms, mobility issues, and safety concerns further limit educated women’s opportunities, particularly after marriage and childbirth. Many women carry unpaid domestic and caregiving responsibilities combined with inadequate childcare support, leading them to leave the labor market. Lack of appropriate job opportunities, safety issues, and wage disparities also contribute to differences in LFPR between men and women. Many still believe unpaid domestic work is primarily a woman’s duty; these expectations complicate work-life balance and limit choices.

Rural women in India tend to have higher employment rates than urban women because rural jobs are driven by necessity instead of choice. Agriculture and related work often utilize women as unpaid family workers or casual laborers, and PLFS counts this as employment even without pay. Consequently, rural women’s employment appears higher. In urban areas, strict job schedules, skill requirements, and mobility issues make it harder for women to find suitable positions. Educated women often leave the labor market when suitable jobs are scarce rather than settle for low-paid or informal work.

The government is taking steps to increase employment. Programs like Mahila Shakti Kendra, the Working Women Hostel Scheme, and the Support to Training and Employment Programme for Women (STEP) provide training and incentives to encourage participation. Other initiatives, such as Ladki Bahin in Maharashtra, offer cash transfers to women, which lowers their need to work. However, women mainly use these transfers for essential household expenses such as food, medical needs, and children’s education. This stabilizes family consumption and reduces reliance on informal loans. Some funds go toward repaying debts, emergencies, or small necessities, while others may be saved or invested in small income-generating ventures such as poultry or tailoring supplies. Having cash directly in their hands boosts personal independence through small purchases, mobile payments, and transport costs. Only a small segment of women invests this money for entrepreneurship. Overall, cash transfers improve household welfare and enhance financial agency, but cannot replace empowerment gained from meaningful work.

India is a rapidly growing economy, and the COVID crisis increased FLFPR. The challenge now is to sustain and further boost participation. Economic growth will be stronger if the gap between male and female employment is reduced. We must create an environment that acknowledges women’s work, both paid and unpaid. Safety concerns are critical. India must move toward a secure environment that allows women to work freely and reach their full potential. If India unlocks women’s participation, it will unlock its greatest engine of growth. The country can create hiring incentives, reduce unpaid labor burdens, expand women’s hostels, and improve transport safety. Raising FLFPR is not only about skilling women or offering cash transfers; it requires transforming the conditions under which women live and work. India’s demographic dividend will reach its full potential only when women’s work, visible and invisible, is valued and integrated into economic policy.

References –

Note- The data is taken from MoSPI (PLFS) dashboard according to current weekly status (2025).

These pieces are being published as they have been received – they have not been edited/fact-checked by ThePrint.

SubscriberWrites: Missing Ingredient in India’s Growth

India is a rapidly growing economy, and the COVID crisis increased FLFPR. The challenge now is to sustain and further boost participation.

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