Why in News

• Prime Minister Narendra Modi recently emphasised the importance of stronger policies and laws to improve Female Labour Force Participation Rate (FLFPR) in India

What is Female Labour Force Participation Rate (FLFPR)?

• Definition: Percentage of women aged 15 years and older who are either employed or actively seeking employment

• Indian Scenario (2024, World Bank): ~33%

• Global Average: ~49%

• Lower-middle-income countries: ~41%

• Significance

  • Drives faster income growth

  • Leads to better health and education outcomes for families

  • Crucial for broad-based development outcomes

Core Drivers of Female LFPR

1. Socio-cultural norms – Attitudes toward women’s work

2. Supply-side factors – Women’s willingness to work

3. Demand-side factors – Availability of suitable work opportunities

Why is FLFPR Low in India?

1. Care Work Burden

1. • Indian women spend 8 times more time than men on unpaid care work

   • Global average (UN): 3 times

2. Unequal Wages

1. • WEF Global Gender Gap Report 2024: India ranked 120th out of 146 countries in wage equality

3. Socio-cultural & Supply Constraints

1. • Patriarchal norms discourage women from formal employment

   • Restricted mobility and safety concerns

4. Demand-side Constraints

1. • Absolute lack of demand for labour in India’s economy

   • Low employment elasticity of growth

5. Low Quality of Education

1. • ASER (Annual Status of Education Report) findings

     • Reading skills: Grade 3 → 23%, Grade 5 → 44%

     • Arithmetic skills: Grade 3 → 33%, Grade 5 → 30%

   • States with poor education quality: Rajasthan, MP, UP, Chhattisgarh, Jharkhand, Bihar

6. Skill Deficit

1. • Only 4.7% of India’s workforce has formal skills training

   • Global comparison: Germany (75%), South Korea (96%)

7. Problematic Labour Laws

1. • ~15% of Indian firms cite labour laws as a major/severe constraint

   • Peer comparison: Bangladesh (3.4%), Philippines (6.4%)

Peer Countries with Higher FLFPR

• Bangladesh and the Philippines: Higher female labour participation than India

• 1990 scenario

  • India → 30%

  • Bangladesh → 25%

• Today: Bangladesh has surged ahead, largely due to labour-intensive growth

How Bangladesh Increased FLFPR

• Export-driven Ready-Made Garment (RMG) Industry

  • 1983: Only 4% of exports from RMG

  • 2021: RMG = 81% of exports ($42 billion)

• Female employment in RMG: Over 60% of employees are women

• Without RMG growth, Bangladesh’s FLFPR would have been ~38%, instead of current higher levels

• Role of Norms & Willingness: Women increasingly willing to join workforce due to sectoral opportunities

• Demand-side Impact: Bangladesh shows that labour-intensive, female-intensive industries push participation rates significantly

Challenges in India

• Low employment intensity of growth – Capital-intensive sectors dominate

• Skill mismatch – Lack of vocational and technical education

• Unequal pay and workplace discrimination

• Socio-cultural barriers – Restrictive gender norms

• Weak policy enforcement – Gender equality laws poorly implemented

• Regional disparities – Northern and central states lag far behind

Way Forward

1. Boost Demand for Women’s Labour

1. • Promote labour-intensive industries (textiles, food processing, care economy)

   • Encourage women’s participation in green jobs, digital economy, and manufacturing hubs

2. Improve Education & Skills

1. • Strengthen basic learning outcomes in schools

   • Expand formal skill training to match global standards

   • Create targeted programmes for women in STEM fields

3. Reform Labour Laws

1. • Simplify and modernise regulations to make hiring women easier

   • Provide flexible work arrangements and stronger maternity protections

4. Address Socio-cultural Barriers

1. • Campaigns to shift attitudes towards women’s employment

   • Better safety infrastructure and childcare support

5. Equal Pay & Workplace Inclusion

1. • Strict implementation of Equal Remuneration Act

   • Encourage companies to adopt gender audits and diversity targets

6. Employment-intensive Growth Path

1. • Move away from over-reliance on capital-intensive sectors

   • Prioritise MSMEs, agriculture value chains, and services where women can contribute

What Lies Ahead?

• If India adopts an employment-intensive growth strategy similar to its peers, female LFPR could rise to 37–43% (from current 33%)

• Once demand-side constraints are addressed, a virtuous cycle can begin

  • More women in workforce → Better outcomes for families → Changing societal norms → Higher supply of female workers → Higher LFPR