Gender Perspective on India’s Economic Vulnerabilities: A Call for Inclusion

Recent 50% US tariffs on Indian exports highlight a deeper structural flaw: India’s underutilization of its female workforce. With women constituting nearly half the population, their exclusion from the formal economy is not just a social issue — it’s a strategic economic liability.

The State of Women’s Employment in India

1. Low Labour Force Participation: Female participation hovers between 37% and 41.7%, well below the global average (~47%) and China’s 60%.
2. Sectoral Vulnerability: 78% of working women are concentrated in apparel, textiles, tobacco, and food — sectors highly exposed to global trade shocks and automation.
3. Urban-Rural Divide: While rural women work more, many are in unpaid, low-productivity roles. Urban participation remains stagnant at ~43%.
4. Informal Dominance: Over 95% of working women are in informal jobs — lacking social security, healthcare, and job stability.

Why Gender Inclusion Matters for India’s Economy

1. $27% GDP Boost: IMF estimates closing the gender gap could increase India’s GDP by 27% — one of the highest gains globally.
2. Demographic Clock Ticking: The demographic dividend window closes by 2045 — full female workforce integration is urgent.
3. Export Competitiveness at Risk: Tariff shocks create a 30–35% cost disadvantage in women-dominated export sectors.
4. Poverty Reduction: Empowering women economically reduces the feminisation of poverty and accelerates progress on SDGs 5 (Gender Equality) and 1 (No Poverty).

Global & Domestic Models for Change

🌍China: Post-1978 reforms sustained 60% female participation via state-supported childcare and industrial jobs.
🇯🇵 Japan: Labour reforms and flexible work policies raised participation to 70%, adding 4% to GDP per capita.
🇳🇱 Netherlands: Part-time work with equal pay and benefits aligns with women’s preferences and boosts retention.
🇮🇳 Karnataka’s Shakti Scheme: Free bus travel increased female ridership by 40%, improving access to jobs.
🇮🇳 Rajasthan’s IGUWEG: Created 4 crore urban jobs, with 65% going to women.
💼 Gig Sector Innovation: Platforms like Urban Company have empowered 15,000+ women with safe, flexible income opportunities.

Way Forward: Building an Inclusive Economy

🔹 Expand Care Infrastructure: Universal childcare and eldercare to reduce unpaid care burden.
🔹 Formalise Women’s Work: Extend social security, insurance, and skilling to informal workers.
🔹 Promote Flexible Work: Incentivise part-time, remote, and gig work with equal rights.
🔹 Enforce Equal Opportunity: Strengthen anti-discrimination laws and workplace safety.
🔹 Scale Pro-Women Schemes: Replicate Shakti, IGUWEG, and digital platforms nationwide.

Conclusion
India cannot afford to treat half its population as an afterthought. Integrating women into the economy isn’t just fair — it’s essential for resilience, competitiveness, and sustainable growth. As global trade pressures mount, gender inclusion must become a core economic strategy, not a sidelined social goal.