Female Labour Force Participation in India
At the 10th Governing Council meeting of the NITI Aayog in May, the prime minister highlighted the need for improved policies to increase women's workforce participation. India's female labor force participation rate (LFPR) is currently around 33%, which is low compared to the 41% average for lower-middle-income countries.
Core Drivers of Female LFPR
- Socio-cultural norms: Societal attitudes toward women's work.
- Supply-side factors: Women's willingness to work.
- Demand-side factors: Availability of work opportunities.
Research indicates that socio-cultural norms and supply-side constraints are significant but not the only factors affecting India's female LFPR. A lack of demand for labor also plays a crucial role.
Comparative Analysis
- Countries with similar economic development levels but different approaches to female-intensive employment and economic growth exhibit varied LFPRs.
- For example, if India adopted Bangladesh's or the Philippines' female employment intensity, its LFPR could increase to 37% or 43%, respectively.
Case Study: Bangladesh
- Bangladesh's increase in female LFPR is attributed to its export-driven ready-made garment (RMG) industry, which employs over 60% women.
- This sector's growth from 4% of total exports in 1983 to 81% in 2021 has significantly boosted female workforce participation.
Challenges in India
- Low quality of education: Only 23% and 33% of third graders meet reading and arithmetic standards.
- Onerous labor laws: 15% of Indian firms cite these as constraints, higher than in Bangladesh (3.4%) or the Philippines (6.4%).
Recommendations
Addressing demand-side constraints, such as improving education quality and reforming labor laws, is crucial for increasing female LFPR. Government intervention can create a positive cycle, enhancing both demand and societal norms.