Inclusive development

India must reduce the gender gap

The need for greater female participation in the economy cannot be exaggerated. It is well accepted that greater gender equality helps productivity, economic growth, and human development. Further, women’s active participation in leadership positions fosters diversification, resulting in better governance and decision-making across sectors. Unfortunately, the gender inequality gap in India continues to be large. The latest Global Gender Gap Report 2024, by the World Economic Forum, released last week, ranked India at 129th place out of 146 countries, a decline of two places from last year — with a score of 64.1 per cent on parity, well below the global average. Comparatively, other emerging countries such as South Africa (18th), Brazil (70th), Vietnam (72nd), and China (106th) are ranked much higher. Moreover, within South Asia, India ranked fifth, trailing behind Bangladesh, Nepal, Sri Lanka, and Bhutan.

On the “Economic Participation” sub-index, India closes the gap by only 39.8 per cent. In contrast, countries like the United States, China, and the United Kingdom score much higher at 76.5 per cent, 73.9 per cent, and 71.7 per cent, respectively. India’s lower position is reflected in the Periodic Labour Force Survey (PLFS) outcomes, which estimate that the female labour force participation rate (LFPR) is around one-third of the male LFPR. The recent increase in female labour force participation is said to be distress-led, and partly in the family enterprises. Their share in regular-wage employment has gone down. On the “Health and Survival” sub-index, despite closing the 95 per cent gap, India continues to rank among the bottom five countries, unchanged from the previous edition. Malnutrition and poor maternal health are the primary concerns for women’s health in India. Further, with the full gross enrolment ratio (GER) of females at the elementary level, India is still positioned at 112th in the “Educational Attainment” category. The female GER sharply declines at higher levels of education. Early marriages, voluntary dropouts, and eldercare responsibilities influence this. Notably, India has shown relatively strong performance in “Political Empowerment”, largely due to reservation in local bodies. However, much remains to be desired even in this context. As seen in the recent Lok Sabha elections, only 73 women candidates were elected, comprising 13.44 per cent of the members.

The journey towards a developed India cannot be accomplished by leaving half the population behind. Hence, the gender gap needs to be proactively addressed. A sustained increase in capital expenditure on infrastructure, transport, electricity, and gas connectivity can significantly empower women, thereby increasing their time spent in educational institutions and workplaces. Unfortunately, the nature of the Indian economy, with a large number of small businesses, also goes against women. Small businesses are often not in a position to offer flexibility that women may need at times because of family responsibilities. Thus, greater formalisation of the Indian economy is likely to help improve women’s participation. However, before expecting improvement in labour force participation, it is important to improve health and educational outcomes. Efforts will be required to reduce the dropout rates among women. Overall, a number of measures at various levels will be needed to improve the presence of women in educational institutions and workplaces. Indian society at large will also need to adjust to this much-needed positive change.