98% of Urban Women involved in Household Financial Decisions: Report by AMFi-CRISIL

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AMFi-CRISIL released a report titled ‘Mutual Growth’ which states that financial decision-making and labour force participation rate (LFPR) of women are rising in India.

Key highlights of the report
- Female LFPR rose to 41.5% (PLFS of Oct 2023) against 24.6% five years back.
- 47% of women take financial decisions on their own.
- Autonomy of women in taking financial decisions depends on income source, age, and stage of affluence.

Significance of increasing role of women in financial decision-making
- Social: Women’s overall empowerment by addressing gender disparities, reduced domestic violence and conflict, etc.
  - Intergenerational impact such as greater proportion of resources allocated towards children’s education, healthcare, etc.
- Economic: Financial literacy and inclusion resulting in better financial planning and wealth management for families and communities.
  - Increased financial intermediation and market depth, tapping into talents and skills of women to help drive entrepreneurship and innovation, etc.

Financial Inclusion: PM Jan Dhan Yojana, Beti Bachao Beti Padhao, Business Correspondent (BC) Sakhi program, etc.
Self-Help Groups (SHGs): Promotion of SHGs by NABARD to promote collective credit decisions and microfinance among women.
Entrepreneurial Support: Schemes like Stand-up India, MUDRA Yojana, etc.

Challenges in women’s financial autonomy
- Socio-cultural: Deep-rooted patriarchy, gender stereotypes, etc., which limits women’s financial independence.
- Economic disparities: Lower participation in formal workforce, gender pay gap [share of female labour income was just 18% (World Inequality Report, 2023)], etc.
  - ‘Dual-burden’ of work, unpaid and unrecognized domestic and care work by women, etc.