Women’s Participation in the Workforce in India

Women’s Participation in the Workforce in India

Introduction

Women’s workforce participation in India has undergone significant transformation, particularly in the post-independence era. The journey reflects constitutional commitments to gender equality, policy interventions, and socio-economic changes that have progressively shaped women’s engagement in economic activities. This comprehensive note examines the growth trajectory, sectoral distribution, government data, and contemporary challenges facing women in India’s workforce.

Constitutional and Policy Foundation (1947-1950)

Constitutional Framework

The Indian Constitution adopted in 1950 established the foundational legal framework for women’s workforce participation:

• Article 14: Guarantees equality before the law and equal protection without discrimination by the state

• Article 15(1): Prohibits discrimination on grounds of sex

• Article 16: Ensures equality of opportunity in matters relating to employment or appointment

• Article 39(D): Mandates equal pay for equal work, irrespective of sex

Universal Adult Suffrage

Article 326 of the Indian Constitution granted universal adult suffrage to all women and men in 1950, a landmark provision that positioned women as equal citizens with political and economic rights. This stood in stark contrast to restricted voting rights during colonial rule, where only property-owning individuals could vote.

Post-Independence Government Focus

The early five-year plans demonstrated government commitment to women’s economic inclusion:

• Second Five-Year Plan (1956-1961): Placed greater emphasis on women’s welfare and economic participation

• Third Five-Year Plan (1961-1966): Focused on increasing the proportion of women in colleges and universities

• Administrative bodies were established to create employment and educational opportunities for women

Historical Trends: 1947 to Present

Pre-Liberalization Phase (1947-1991)

Limited comprehensive data exists for the pre-1990s period. However, agricultural census records indicate that women constituted a significant proportion of rural workforce, particularly as unpaid family workers in agriculture.

Post-Liberalization Paradox (1991-2017)

A significant paradox emerged following economic liberalization in 1991. Despite improvements in education, declining fertility rates, and rising household incomes, female labour force participation declined from approximately 32% in 1993-94 to 18% by 2017-18.

Key drivers of this decline:

• Rising education levels leading women to seek non-agricultural, non-domestic employment

• Structural transformation of economy without corresponding job creation for women

• Inadequate childcare infrastructure and social support systems

• Withdrawal from agricultural sector without proportional entry into formal sectors

• Gender norms restricting women’s mobility and occupational choices

Sharp Reversal (2017-Present)

A dramatic reversal occurred from 2017 onwards, marking a new phase of unprecedented growth.

Growth Trajectory: 2017-2024

Female Labour Force Participation Rate (FLFPR)

Female Worker Population Ratio (WPR)

Unemployment Rate (UR)

The female unemployment rate showed corresponding improvement:

• 2017-18: 5.6%

• 2023-24: 3.2%

Key Observation from Recent Data

As of October 2025, the latest PLFS indicates:

• Female LFPR reached 34.2% for ages 15+ (up from 32.0% in June 2025)

• Female WPR reached 32.4% (up from 30.2% in June 2025)

• Rural female WPR increased significantly to 36.9% (up from 33.6% in June 2025)

• This sustained growth indicates ongoing momentum in women’s economic participation

Rural versus Urban Participation

Rural Women Driving Growth

Rural areas have been the primary driver of recent growth:

Growth Drivers in Rural Areas

• Rural distress and economic pressure forcing household income supplementation

• Inflation and stagnant agricultural wages

• Limited formal job opportunities elsewhere, pushing women to supplement household income

• Increased agricultural activities

Urban Challenges

Urban female participation, while improving, shows slower growth:

• Urban unemployment rate for females remains higher at 7.0% (October 2025) compared to 4.4% in rural areas

• Urban females face 7.5% unemployment compared to 1.8% in rural areas

• Limited formal job opportunities relative to rising education levels

• Challenges in accessing suitable employment near residential areas

Sectoral Distribution of Women Workers

Agricultural Sector

Agriculture remains the largest employer of women:

Rural Sector:

• 76.2% of rural female workers engaged in agriculture (compared to 49.1% of men)

• Share of self-employed women in agriculture: increased from 48% (2011-12) to 62% (2023-24)

• Female agricultural employment: 73.2% in 2017-18 to 76.9% in 2023-24

Key characteristics:

• Large proportion of unpaid family labour and self-employment

• Women agricultural workers face significant challenges in land ownership and access to credit

• As per 2011 Census: 3.6 crore women farmers and 6.15 crore women agricultural labourers

• Approximately 80% of rural women engaged in agriculture but nearly 50% work without pay

Manufacturing Sector

Urban Areas:

• 23.9% of urban female workers engaged in manufacturing (higher than 20.5% of male workers)

• Growing proportion of women in organized manufacturing

• Increasing female participation in textiles, garments, electronics, and light manufacturing

Rural Areas:

• 8.3% of rural female workers in manufacturing

• Limited formal opportunities but growing self-employment in home-based manufacturing

Services Sector

Urban Areas:

• 40.1% of urban female workers in other services (significantly higher than males at 20.6%)

• Services include retail, hospitality, healthcare, education, and administrative support

• Highest concentration of urban female employment

Rural Areas:

• 6.9% of rural female workers in other services

• Growing opportunities in rural health, education, and community services

Other Sectors

Key observation: Women’s representation in construction, trade, and transport remains significantly lower than men’s, reflecting occupational segregation and occupational norms.

Employment Status: Formal vs. Informal

Self-Employment Dominance

Women’s workforce is heavily skewed toward self-employment:

Rural Employment Pattern

• Self-employed rural women: 24.2% (up from 13.6% in 2017-18)

• Unpaid family helpers in agriculture: 17.7% of rural women workers (up from 9.6% in 2017-18)

• The sharp increase in unpaid family workers indicates distress-driven participation rather than empowered entry into workforce

• Among unpaid household enterprise workers: 87% engaged in agriculture and allied sectors

Urban Employment Pattern

• Regular wage/salaried employment: 11.0% of urban women (up from 9.5% in 2017-18)

• Urban females in regular employment: 50.8% of all urban female workers

• Better access to formal employment compared to rural women

• However, still faces challenges in senior roles and technical positions

Formal Sector Growth

EPFO (Employees’ Provident Fund Organisation) Data:

• Over 1.56 crore women joined the formal workforce in the past seven years

• EPFO added 4.42 lakh net female members in July 2025

• Female participation in formal sector showing consistent growth

• Regional hubs for female formal employment: Maharashtra, Karnataka, Tamil Nadu, Gujarat, Haryana

Informal Sector Dominance

• Over 90% of employed women are engaged in informal work

• e-Shram registration: 16.69 crore unorganized women workers registered (as of August 2025), providing access to social welfare schemes

• Informal workers lack:

  • Social security coverage

  • Maternity benefits

  • Legal protections and contracts

  • Consistent income guarantees

Government Data and Statistics

Periodic Labour Force Survey (PLFS)

Primary data source for official workforce statistics:

• Conducted by: Ministry of Statistics and Programme Implementation (MoSPI)

• Coverage: Annual surveys with detailed demographic and occupational breakdowns

• Significance: Most reliable source for tracking labour market trends

Key Metrics from Latest PLFS (2023-24)

Education-Based Participation

• Postgraduate and above: Female WPR increased from 34.5% (2017-18) to 40% (2023-24)

• Graduate employability: Increased from 42% (2013) to 47.53% (2024)

• Education correlates positively with formal employment prospects

Income-Related Challenges

• 44.5% of women not in the labour force cite childcare or domestic responsibilities as the primary reason

• Only less than 1% of men cite the same reason

• 3.4% of women cite social and cultural factors as reasons for non-participation

Government Initiatives and Schemes

Skill Development Programs

Pradhan Mantri Kaushal Vikas Yojana (PMKVY)

• Provides vocational training through Women Industrial Training Institutes

• National and Regional Vocational Training Institutes

• Focus on demand-driven skill development in health, education, logistics, digital services

Support to Training and Employment Program for Women (STEP)

• Equips women with valuable skills

• Improves employment prospects

• Fosters economic independence

Prime Minister’s Internship Scheme

• Provides skill development and vocational training

• Bridge between education and employment

Entrepreneurship and Credit Schemes

Pradhan Mantri Mudra Yojana (PMMY)

• Collateral-free credit for micro and small enterprises

• Special focus on women entrepreneurs

• Facilitates business creation and expansion

Stand-Up India Scheme

• Bank finance for setting up microenterprises

• Margin money subsidy: 15-35% for manufacturing projects (up to INR 25 lakhs)

• Special category beneficiaries (women) get 25% (urban) to 35% (rural) subsidy

Startup India

• Support for innovative women entrepreneurs

• Recognition of women-led startups

• Facilitation of venture capital access

Prime Minister’s Employment Generation Programme (PMEGP)

• Major credit-linked subsidy scheme

• Self-employment opportunities through micro-enterprises in non-farm sector

• Significant proportion of beneficiaries are women

Rural Livelihood Programs

Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM)

• Focus on rural women’s economic empowerment through Self-Help Groups (SHGs)

• Nearly 10 crore women associated with 90 lakh SHGs

• Support for livelihood diversification

Lakhpati Didi Scheme

• Objective: Enable SHG women to achieve sustainable income of ₹1 lakh annually

• Target: Enhanced from 2 crore to 3 crore women by 2030

• Achievement: 1 crore women already achieved Lakhpati status

• Financial support: ₹2,500 crore revolving funds + ₹5,000 crore bank loans disbursed in 2024

• Key features: Multi-livelihood support (farm-based, non-farm, services), financial literacy, skill development, market linkages

Namo Drone Didi

• Technical capability enhancement for women

• Drone operation training and agricultural application

• Income generation through precision farming services

Mahila Shakti Kendra (MSK)

• Rural women empowerment through skill development

• Employment and income generation opportunities

• Community-based approach

Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY)

• Skill training for rural youth

• Significant emphasis on women’s participation

• Linkage to employment opportunities

Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS)

• 100 days of guaranteed employment

• MGNREGA adapted for women-specific tasks

• Income support for rural households

Urban Employment Programs

Deendayal Antyodaya Yojana – National Urban Livelihoods Mission (DAY-NULM)

• Street vendor support through Pradhan Mantri Street Vendors Atma Nirbhar Nidhi (PM SVANidhi)

• Skills training and credit linkage

• Focus on inclusive urban employment

Women-Centric Schemes

Mission Shakti

• Umbrella scheme for women’s protection and empowerment

• Integrates multiple government initiatives

• Focus on safety, security, and economic independence

SWADHAR Greh

• Support for women in difficult circumstances

• Rehabilitation and livelihood training

• Residential care and skill development

Working Women Hostel Scheme

• Accommodation for working women

• Preference for single, widowed, divorced, separated women

• Up to 30% training beneficiaries allowed

One-Stop Centre Scheme

• Integrated support for women facing violence or distress

• Counseling, legal aid, and livelihood support

• Convergence with employment programs

Beti Bachao, Beti Padhao

• While primarily focused on girl child education, creates foundation for future workforce participation

• Reduces gender-based discrimination in education

Formal Sector Growth Initiatives

Production-Linked Incentive (PLI) Scheme

• Manufacturing sector incentives with women-focused component

• Employment generation in sectors like electronics, textiles, automobiles

Make in India

• Aims to attract manufacturing investments

• Women-specific incentives being embedded

• Labor-intensive sector expansion creating proximity-based jobs

Employment Linked Incentive (ELI) Scheme

• Support for job creation

• Focus on manufacturing sector

• Expanded social security coverage

Skills and Digital Empowerment

Women in Science and Engineering (WISE-KIRAN)

• Promotion of women in research and development

• STEM field empowerment

SERB-POWER

• Research grants and support for women scientists

• Career advancement in scientific fields

Challenges Hindering Women’s Workforce Participation

Structural and Societal Barriers

Gender Norms and Cultural Expectations

• Deep-rooted patriarchal norms position men as breadwinners and women as caregivers

• Women expected to prioritize family over professional ambitions

• Stigmatization of working women, particularly after marriage or childbirth

• Rural areas show more pronounced gender role rigidity

Childcare and Domestic Responsibilities

• 44.5% of women outside workforce cite childcare/domestic duties as primary reason

• Only less than 1% of men cite the same reason

• Severe deficit of affordable and accessible childcare facilities

• Women perform 10 times more unpaid care work than men in India (now increased by 30% post-pandemic)

• Unpaid care work valued at 3.1% of GDP and often ranges from 10-39% of GDP when fully counted

Mobility Constraints

• Inadequate access to safe transportation

• Social restrictions on women’s movement

• Studies show women willing to work only within specific radii of homes

• Fear of harassment limits employment location choices

Employment and Income-Related Challenges

Formal Employment Gap

• Only 15.9% of working women in regular wage/salaried positions (vs. higher for men)

• 73% of working women in self-employment, mostly unpaid family labour

• Limited progression to higher-paying sectors

Occupational Segregation

• Concentration in agriculture, domestic work, and low-skilled services

• Underrepresentation in construction (4.2% rural, 3.1% urban females vs. higher male %s)

• Absence from high-income sectors like transport, IT, finance

Quality of Employment

• Over 90% of employed women in informal sector lacking social security

• Absent maternity benefits, paid leave, legal protections for informal workers

• Wage gap: Women earn 30-40% less than men in construction and real estate sectors

• Technical and managerial roles severely limited (only 1.4% in construction)

Unpaid Labour Phenomenon

• 17.7% of rural women engaged as unpaid family helpers (up from 9.6% in 2017-18)

• 87% of unpaid household workers engaged in agriculture

• Unpaid work provides no income, asset ownership, or financial independence

• Women’s contribution to family enterprises rarely recognized

Sectoral Deficits

Agricultural Challenges

• Women lack land ownership

• Limited access to credit and extension services

• Mechanization reducing female-intensive operations (harvesting, threshing)

• No recognition of unpaid agricultural labour in statistics

• Undercount of female farmers and agricultural workers

Manufacturing Sector Opportunities Limited

• While urban women show 23.9% participation, skills gaps persist

• STEM field entry limited (though India has 43% women vs. 34% in US, 38% in UK)

• Only 1.4% in technical/managerial roles in construction industry

Services and Digital Sectors Underdeveloped for Rural Women

• Urban women overrepresented in services but rural women vastly underrepresented

• Digital skills gap limits participation in IT and gig economy

• Limited access to platform economy for rural women

Geographic and Resource Disparities

LFPR Collapse in Hindi Heartland

• States like Uttar Pradesh and Bihar show LFPR below 10% for women

• Stark regional variations indicating systemic issues in certain states

Urban-Rural Gap

• Rural women FLFPR (46.5%) significantly higher than urban (26.0%) in recent data

• Urban growth constrained by formal employment deficits

• Rural growth driven by distress rather than opportunity

Education-Employment Mismatch

• Higher education levels not translating to higher quality employment

• Employability of female graduates at 47.53% (2024) suggests skills-opportunity gap

• Credential inflation without corresponding job creation

Impact of Recent Economic Pressures

Distress-Driven Participation

The recent surge in FLFPR reflects not opportunity but distress:

• Rural economic stress and agricultural decline

• Inflation eroding household purchasing power

• Stagnant agricultural wages requiring household income supplementation

• Men’s migration to cities leaving agricultural tasks to women

Involuntary Self-Employment

• 67.4% of working women in self-employment (up from 51.87% in 2017)

• Majority unpaid family workers without income or asset control

• Reflects absence of wage employment opportunities rather than entrepreneurial choice

Income Inequality

• Women’s participation concentrated in lowest-income sectors

• Agricultural and domestic work provide subsistence income only

• Limited pathways to formal, high-income employment

Government Targets and Future Vision

National Ambitions

2030 Target

• Raise Female Labour Force Participation Rate from 41.7% (FY24) to 55% by 2030

• Focus on bridging gender employment gap

2047 Vision (Viksit Bharat 2047)

• Achieve 70% women workforce participation

• Build 400 million-strong women workforce

• Integrate women across sectors from agriculture and MSMEs to AI and clean energy

Economic Impact Potential

• Pushing gender equality could add ₹46 lakh crore (USD 700 billion) to India’s GDP (2025)

• Women’s workforce integration crucial for India’s USD 5 trillion economy transition

• Nearly 45% of GDP growth by 2047 projected to come from women’s participation

Key Takeaways

Recent Progress

• Female WPR nearly doubled from 22% (2017-18) to 40.3% (2023-24)

• FLFPR surged from 23.3% (2017-18) to 41.7% (2023-24)

• Female unemployment rate declined from 5.6% to 3.2%

• Rural women driving growth, with 96% employment increase in rural areas vs. 43% urban

• 1.56 crore women joined formal workforce in past seven years

Persistent Challenges

• Gender employment gap remains at 13.3 percentage points in WPR

• Over 90% of women in informal, insecure employment

• Unpaid family labour dominates rural participation

• Childcare and domestic responsibilities remain primary non-participation drivers

• Occupational segregation confines women to lower-income sectors

Policy Direction

• Government implementing comprehensive schemes targeting skill development, credit access, and market linkages

• Emphasis on rural empowerment through SHGs and Lakhpati Didi schemes

• Focus on formal sector integration through EPFO and credit guarantee schemes

• Recognition of care work importance with support infrastructure initiatives

Critical Need

• Structural reforms in childcare infrastructure and social support systems

• Safe, secure formal employment creation in proximity-based locations

• Land and credit access for rural women

• Social norm transformation regarding gender roles and women’s work

• Transition from subsistence to quality, remunerative employment

Sources and Data Attribution

Government Data Sources:

• Periodic Labour Force Survey (PLFS) – Ministry of Statistics and Programme Implementation

• EPFO Payroll Data – Ministry of Labour and Employment

• e-Shram Database – Ministry of Labour and Employment

• Economic Survey 2024-25

Key Reports Referenced:

• Women and Men in India, 2023 (Ministry of Statistics and Programme Implementation)

• Nari Shakti se Viksit Bharat Report

• McKinsey Report on Gender Equality and Economic Growth

Notes on Society