After Reading This Article You Can Solve This UPSC Mains Model Question:
Examine the causes of India’s fluctuating Female Labour Force Participation Rate (FLFPR) and suggest measures to ensure qualitative economic inclusion. (10 Marks) (GS-3 Economy )
Context
Rising youth unemployment and a collapse in non-farm jobs have forced a distress-driven return to agricultural employment, threatening India’s economic stability and its ‘Viksit Bharat’ ambitions.
Introduction
To sustain 8%-9% GDP growth, India must drastically improve its formal Female Labour Force Participation Rate (FLFPR), which remains below 30%. Transitioning the female workforce from distress-driven agricultural labor to formal, remunerative employment is critical for national productivity.
What are the Trends in Female Labour Force Participation in India (FLFPR)?
1. Recent FLFPR Surge
- According to the Periodic Labour Force Survey (PLFS) 2023-24, FLFPR rose to 41.7%, recovering from a low of 23.3% in 2017-18.
- This metric masks underlying distress, as the rise is predominantly driven by rural women engaging in unpaid or non-remunerative work.
2. Return to Agriculture
- Contrary to expectations of structural transformation, the share of rural women in agriculture increased to 76.9% in 2023-24.
- This reflects a reverse structural shift as women are compelled to return to subsistence farming due to limited non-farm opportunities.
3. Rise in Unpaid and Self-Employment
- Much of the recent increase represents a shift from domestic duties to unpaid family labour or low-paid self-employment.
- This indicates that the rise in participation reflects economic distress and inflation survival rather than genuine economic empowerment.
Significance of Increasing Female Worker Population Ratio (WPR)
1. GDP Expansion
- A 10-percentage-point increase in India’s female WPR could augment the overall GDP growth rate by nearly two percentage points.
- Integrating women expands the total labor supply, directly amplifying the nation’s aggregate economic capacity.
2. Multiplier Effect on Demand
- When women enter paid employment, household incomes rise, which directly boosts domestic savings and aggregate consumption.
3. Human Capital Development
- Increased maternal earnings directly translate into better nutrition, healthcare, and educational outcomes for children.
4. Workplace Innovation & Competitiveness
- Cross-country evidence confirms that gender-diverse work environments inherently drive higher efficiency, creativity, and global competitiveness.
Challenges Undermining Female Labour Market Outcomes
1. Jobless Capital-Intensive Growth
- Recent economic expansion is concentrated in capital-heavy sectors (e.g., IT and finance) that fail to absorb large cohorts of the workforce.
- Labor-intensive sectors like textiles and small-scale manufacturing witnessed an absolute decline in employment between 2013 and 2019.
2. The ‘Double Burden’ of Care Work
- Women disproportionately bear the burden of unpaid domestic and care work (contributing an invisible 3.1% to GDP).
- This severe time poverty restricts their ability to enter or sustain formal market employment.
3. Pervasive Informality
- Over 90% of employed women are trapped in the informal sector, leaving them devoid of social security or basic legal safeguards.
4. Rising ‘NEET’ Population
- Despite achieving gender parity in secondary education, the number of young women (aged 15-29) Not in Education, Employment, or Training (NEET) skyrocketed to over 100 million by 2018.
5. North-South Employment Divide
- States like Tamil Nadu account for over 40% of India’s female factory workers due to robust infrastructure and literacy.
- Conversely, Hindi-belt states lag significantly, with Bihar recording a dismal female WPR of just 15%.
Way Forward
1. Promote Labor-Intensive Manufacturing
- Realign national schemes like the Production-Linked Incentive (PLI) to aggressively support female-centric, labor-intensive sectors such as textiles, footwear, and food processing.
2. Invest in Social Infrastructure
- State governments must develop robust community childcare centers, elderly care services, and secure working women’s hostels to alleviate the double burden of domestic duties.
3. Redesign Employment Metrics
- Modernize National Statistical Office (NSO) surveys by incorporating robust Time Use Surveys to accurately capture and economically value women’s unpaid care work.
4. Replicate the Southern Industrial Model
- Northern states must invest heavily in non-insurance-based public health and universal female education to mirror Tamil Nadu’s success in industrial female workforce integration.
5. Empower and Formalize the Self-Employed
- Strengthen Self-Help Groups (SHGs) by seamlessly linking them with formal credit institutions, digital financial literacy programs, and e-commerce platforms.
6. Targeted Skill Development
- Launch region-specific vocational training tailored to emerging sectors like healthcare, logistics, and digital services to make the transition away from agriculture viable.
Conclusion
The recent statistical rise in FLFPR masks deep economic distress rather than reflecting true structural empowerment. Creating formal, high-quality jobs for women is an urgent policy imperative to harness India’s demographic dividend and achieve true economic parity.
| Important CTC From This Article For UPSC 1. Viksit Bharat 2047 2. Worker Participation Rate (WPR) 3. Labour Force Participation Rate (LFPR ) |