India needs to unlock the hidden potential of millions of women to become a global economic powerhouse by 2047

India is currently the fastest-growing major economy, and has a vision of becoming ‘Viksit Bharat’ (Developed India) by 2047. To achieve this ambitious goal, it is imperative to tap into the full potential of the female workforce. Women’s participation in economic activity is not just a matter of social equity, but an economic necessity. If harnessed effectively, it could add trillions to India’s GDP, drive innovation, and create a more resilient and sustainable economy. A recent World Bank study states that “gender gaps in labour force participation persist worldwide. Closing this gap can lead to sizeable gains for economies-a 20% increase in GDP per capita, on average”.

Encouragingly, data over the past six years shows a positive trend in female workforce participation in the country. Indicators such as increased engagement in economic activity, a declining unemployment rate, a rising number of educated women joining the workforce, and steadily increasing earnings across employment categories paint an optimistic picture. However, despite these improvements, much remains to be done, particularly since the Union Budget 2025-26 has set an ambitious target-70% female workforce participation by 2047.

A Significant Shift

The PLFS 2023-24 reports a substantial rise in female workforce participation. The Worker Population Ratio (WPR) for women aged 15 years and above increased to 40.3% in 2023-24 from 22% in 2017-18. Similarly, the Labour Force Participation Rate (LFPR) for women in this age group rose from 23.3% in 2017-18 to 41.7% in 2023-24, while female unemployment dropped from 5.6% to just 3.2%. These figures challenge outdated claims of stagnation in female employment and indicate a remarkable transformation.

Expanding opportunities for women in economic activities such as food-processing, manufacturing, logistics, emerging tech-driven industries, and green jobs, etc, will accelerate this. A more inclusive workforce enhances productivity and innovation while improving health and education outcomes for families, leading to better child nutrition, cognitive development, and lower healthcare expenditures.

Government Interventions

To drive higher female workforce participation, the government has taken several crucial steps, such as: (i) Women’s reservation in Parliament: In a historic move, India enacted one-third reservation for women in the Lok Sabha and state assemblies in 2023, ensuring greater female representation in decision-making; (ii) Workplace safety and accommodation: The Working Women Hostels scheme provides safe housing for working women, enabling more women to seek employment away from home; (iii) Greater inclusion in the armed forces and law enforcement: Women are now eligible for permanent commission in the armed forces, including combat roles. Additionally, states and UT have been advised to increase female representation to 33% in their police forces; and, (iv) Labour law reforms: The Occupational Safety and Health Code, 2020, entitles women to be employed in all establishments for all types of work, including night shifts, with safety measures.

Economic Initiatives

Women entrepreneurs and workers benefit from government initiatives that provide financial assistance and employment guarantees, such as:

• Pradhan Mantri Mudra Yojana & Stand-Up India: These offer collateral-free, subsidised credit to help women start and scale businesses
• MGNREGA 2005: Mandates that at least one-third of jobs under the scheme be allocated to women
• Skill Development and Digital Literacy: Initiatives like Skill India and Digital Saksharta Abhiyan are equipping women with essential skills for the modern workforce

India vs. Global Trends

While India has made remarkable strides, there is still ground to cover compared to global averages. The International Labour Organization reports a global LFPR at about 49% in 2024. India’s female LFPR, while significantly improved, remains slightly below this global benchmark.

A notable trend is the increasing participation of educated women. PLFS data shows that:

• 39.6% of women with postgraduate degrees or higher were working in FY24, against 34.5% in FY18.
• 23.9% of women with higher secondary education were employed in 2023-24, up from 11.4% in 2017-18.

The rise in women joining Global Capability Centres, engineering, IT, and R&D sectors is fuelling economic growth and positioning India as a global innovation hub.

Addressing Barriers

Despite these, challenges remain. Data from PLFS 2020-24 shows the primary reasons women stay out of the workforce. Childcare and homemaking responsibilities continue to be the biggest barriers, cited by 45.15% of women in 2022-23. Encouragingly, this fell to 43% in 2023-24, indicating incremental progress.

To support women balancing work and home responsibilities, the government has implemented several policies, such as: (a) Maternity and Adoption Leave: The Maternity Benefit (Amendment) Act, 2017 increased paid maternity leave to 26 weeks; (b) Crèche Facilities: Establishments with 50 or more employees must provide childcare facilities; (c) Equal Pay: The Code on Wages, 2019, prohibits gender-based wage discrimination and ensures fair recruitment practices.

The Road Ahead

PLFS data confirms that India’s female workforce participation is on an upward trajectory. Government interventions have been pivotal in driving this transformation.

Achieving the 70% workforce participation target by 2047 will require sustained efforts across multiple dimensions, such as strengthening childcare support, enhancing flexible work policies, investing in digital and STEM education to prepare more women for high-skill jobs, encouraging private sector diversity hiring through policy nudges.

With continued momentum and strategic interventions, India is on the right path toward gender-inclusive economic growth. By unlocking the hidden potential of millions of women, India can accelerate its journey to becoming a global economic powerhouse by 2047.

The author is Sumita Dawra, Secretary, Ministry of Labour & Employment. Views are personal.