{"id":5418,"date":"2024-08-27T15:12:58","date_gmt":"2024-08-27T09:42:58","guid":{"rendered":"https:\/\/incredmoney.wpcomstaging.com\/?p=5418"},"modified":"2024-08-27T15:12:58","modified_gmt":"2024-08-27T09:42:58","slug":"womenomics-in-india-higher-gdp","status":"publish","type":"post","link":"https:\/\/devblog.incredmoney.com\/blog\/womenomics-in-india-higher-gdp\/","title":{"rendered":"Womenomics in India = Higher GDP"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">According to <\/span><a href=\"https:\/\/xsqg-zgph.maillist-manage.net\/click\/16dac2885d5b1689\/16dac2885d5aed69\"><span style=\"font-weight: 400;\">The World Bank<\/span><\/a><span style=\"font-weight: 400;\">, India ranks 165th out of 187 countries when it comes to the Women\u2019s Labour Force Participation Rate (WLFPR). Only 33% of women here are part of the workforce, contributing ~18% to our GDP.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">While I know that comparing us to Western countries may feel unfair due to their smaller population sizes, let&#8217;s talk about China here whose population is similar to ours.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">China has 61% of their women participating in the labour force, who contribute nearly <\/span><a href=\"https:\/\/xsqg-zgph.maillist-manage.net\/click\/16dac2885d5b1689\/16dac2885d5aed6b\"><span style=\"font-weight: 400;\">~40% to their GDP<\/span><\/a> <span style=\"font-weight: 400;\">(as of 2018, and it\u2019s likely even more now).<\/span><\/p>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"wp-image-5420 aligncenter\" src=\"https:\/\/www.incredmoney.com\/blog\/wp-content\/uploads\/2024\/08\/unnamed-1-1-300x179.jpg\" alt=\"Female Labour Force Participation\" width=\"553\" height=\"330\" \/><\/p>\n<h3><b>Why is our representation so low? The reasons aren\u2019t exactly surprising:<\/b><b><br \/>\n<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Unpaid domestic work: <\/b><span style=\"font-weight: 400;\">Indian women spend ~<\/span><a href=\"https:\/\/xsqg-zgph.maillist-manage.net\/click\/16dac2885d5b1689\/16dac2885d5aed6d\"><span style=\"font-weight: 400;\"> 9.8x<\/span><\/a><span style=\"font-weight: 400;\"> more hours on unpaid domestic chores compared to men. According to an SBI report, this invisible labour contributes ~7.5% to our GDP, yet it goes completely unaccounted for.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Informal jobs:<\/b><span style=\"font-weight: 400;\"> A huge chunk of women may not get accounted for in the workforce since they work in the unorganised\/ informal sector like working in their own farms, working as domestic help, construction labour, etc.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Stigma:<\/b><span style=\"font-weight: 400;\"> In India, there is still a stigma for working women. Hence many don\u2019t join the formal workforce or leave the workforce after marriage to take care of their kids and household responsibilities.<\/span><\/li>\n<\/ul>\n<h3><b>We need to increase Women\u2019s participation in the Formal Labour workforce<\/b><\/h3>\n<p><img decoding=\"async\" class=\"wp-image-5425 aligncenter\" src=\"https:\/\/www.incredmoney.com\/blog\/wp-content\/uploads\/2024\/08\/unnamed-2-1-300x166.jpg\" alt=\"Womenomics in India = Higher GDP\" width=\"619\" height=\"342\" srcset=\"https:\/\/devblog.incredmoney.com\/blog\/wp-content\/uploads\/2024\/08\/unnamed-2-1-300x166.jpg 300w, https:\/\/devblog.incredmoney.com\/blog\/wp-content\/uploads\/2024\/08\/unnamed-2-1.jpg 693w\" sizes=\"(max-width: 619px) 100vw, 619px\" \/><\/p>\n<p><img decoding=\"async\" class=\"wp-image-5424 aligncenter\" src=\"https:\/\/www.incredmoney.com\/blog\/wp-content\/uploads\/2024\/08\/unnamed-3-1-300x188.jpg\" alt=\"Womenomics in India = Higher GDP\" width=\"561\" height=\"351\" srcset=\"https:\/\/devblog.incredmoney.com\/blog\/wp-content\/uploads\/2024\/08\/unnamed-3-1-300x188.jpg 300w, https:\/\/devblog.incredmoney.com\/blog\/wp-content\/uploads\/2024\/08\/unnamed-3-1-1024x643.jpg 1024w, https:\/\/devblog.incredmoney.com\/blog\/wp-content\/uploads\/2024\/08\/unnamed-3-1-768x482.jpg 768w, https:\/\/devblog.incredmoney.com\/blog\/wp-content\/uploads\/2024\/08\/unnamed-3-1.jpg 1224w\" sizes=\"(max-width: 561px) 100vw, 561px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">The summary of both the charts? While an increase in women\u2019s participation is desired, it is preferred in the more formal sectors of the economy. As you can see, the countries on the right-hand side of the first chart are those that have a higher women participation in the formal sector. This is where India should move towards to achieve our economic goals.<\/span><\/p>\n<h3><b>Womenomics may have answers on how we reach those goals\u2026\u00a0<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">We can take inspiration from Japan\u2019s <\/span><a href=\"https:\/\/xsqg-zgph.maillist-manage.net\/click\/16dac2885d5b1689\/16dac2885d5aed6f\"><span style=\"font-weight: 400;\">Womenomics<\/span><\/a><span style=\"font-weight: 400;\"> which aimed to boost Japan\u2019s GDP by getting more women into the workforce. As a result, Japan\u2019s female labour force participation rate shot up from 64.9% in 2013 to 75.2% in 2023.\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Make our workplaces safer:<\/b><span style=\"font-weight: 400;\"> No matter how many initiatives the government rolls out to boost women\u2019s workforce participation, they won\u2019t succeed without robust safety measures. Incidents like the one at RG Kar Hospital in Kolkata aren\u2019t just societal setbacks \u2014 they\u2019re significant roadblocks to our economy too.<\/span><\/li>\n<\/ul>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Improve Childcare facility:<\/b><span style=\"font-weight: 400;\"> Make it more accessible and affordable for mothers to avail childcare services whether privately operated or government-funded.\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Increase female leadership: <\/b><span style=\"font-weight: 400;\">As of FY24, only <\/span><a href=\"https:\/\/xsqg-zgph.maillist-manage.net\/click\/16dac2885d5b1689\/16dac2885d5aed71\"><span style=\"font-weight: 400;\">18% of senior roles <\/span><\/a><span style=\"font-weight: 400;\">are held by women. Changing this will inspire more women to take up formal work roles.<\/span><\/li>\n<\/ul>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Workstyle reforms: <\/b><span style=\"font-weight: 400;\">Labour reforms are required to reduce overtime hours and mandate equal pay for equal work.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<\/ul>\n<h3><b>The ripple effect\u00a0<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">As more women enter the formal workforce, we might see a shift toward more nuclear families and improved living standards. Women in professional roles would begin outsourcing care work, creating additional jobs and income opportunities, not just in urban areas but in rural regions as well.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This would not only redistribute unpaid care work but also ensure it\u2019s better valued and rewarded &#8211; addressing one of the core economic issues we face today.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If India wants to hit that ambitious <\/span><a href=\"https:\/\/xsqg-zgph.maillist-manage.net\/click\/16dac2885d5b1689\/16dac2885d5aed73\"><span style=\"font-weight: 400;\">8% GDP growth<\/span><\/a><span style=\"font-weight: 400;\"> target on a sustainable basis, women will need to make up more than 50% of the new workforce by 2030. But with so many hurdles to overcome, it feels like we have a long road ahead.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Let me know what your thoughts are on this topic.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Till the next time,<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Vijay<\/span><\/p>\n<p><span style=\"font-weight: 400;\">CEO &#8211; InCred Money<\/span><\/p>\n<p><span style=\"font-weight: 400;\">P.S. I share my thoughts on Investing and the Economy regularly. You can<\/span> <a href=\"https:\/\/xsqg-zgph.maillist-manage.net\/click\/16dac2885d5b1689\/16dac2885d5aed75\"><span style=\"font-weight: 400;\">follow me here<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>According to The World Bank, India ranks 165th out of 187 countries when it comes to the Women\u2019s Labour Force Participation Rate (WLFPR). Only 33% of women here are part of the workforce, contributing ~18% to our GDP. While I know that comparing us to Western countries may feel unfair due to their smaller population [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":5427,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[5],"tags":[10],"class_list":["post-5418","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-newsletter","tag-newsletter"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Womenomics in India = Higher GDP - InCred Money<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/devblog.incredmoney.com\/blog\/womenomics-in-india-higher-gdp\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Womenomics in India = Higher GDP - InCred Money\" \/>\n<meta property=\"og:description\" content=\"According to The World Bank, India ranks 165th out of 187 countries when it comes to the Women\u2019s Labour Force Participation Rate (WLFPR). Only 33% of women here are part of the workforce, contributing ~18% to our GDP. 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