NEW DELHI – India’s female labor force participation rate (LFPR) stands at 35%, which is well below that of peers like Bangladesh (42%) and the Philippines (50%). Though it has risen substantially from 21% in 2017–2018, a closer examination reveals that over 70% of the increase came from the agriculture and subsistence sectors, with significant levels of disguised employment.
Closing the female LFPR gap with the developed world is critical not only for advancing gender equality, but also for unlocking a substantial growth dividend. India could add between $700 billion and $1.4 trillion to its gross domestic product.
But why do fewer women work in India to begin with? Much of the literature on this question has focused on supply-side constraints, particularly societal norms, including the unequal distribution of unpaid care work, restrictions on mobility and education, weak legal protections and practices such as child marriage.
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