Women as long-term investors could create Rs 40 trn in GDP potential: Study

While financial inclusion has brought millions of women into the banking fold, a systemic 'agency gap' is preventing them from building the long-term assets needed to drive national growth, it says

India could unlock an estimated Rs 40 trillion in economic potential by increasing women’s participation in long-term investments, according to a report by Lxme and EY India, which notes that meaningful wealth creation still lags behind rapid gains in financial access.

 

The report, titled “Women’s Financial Prosperity Index” (WFPI), scores the country at 28.1 out of 100, indicating that a large part of women’s journey towards financial security and asset ownership remains blocked.

 

Financial access has improved, but wealth creation lags

India has seen one of the fastest expansions of financial inclusion globally. More than 89 per cent of women now hold bank accounts, and digital payments have become part of everyday transactions.

 

However, the report highlights a clear gap between access to financial services and actual wealth creation.

 

Several indicators show that women remain underrepresented in long-term investments:

• Women earn Rs 73 for every Rs 100 earned by men
• Only 41.7 per cent of working-age women participate in the labour force, compared with 78.8 per cent of men
• Just 8.6 per cent of women invest in mutual funds or equities, against 22.3 per cent of men
• Only 14.2 per cent of women hold pension or provident fund accounts, compared with 32.8 per cent of men
• Women account for about 25 per cent of mutual fund folios, nearly half the average first investment size compared with men
• Only 21 per cent of Indian women are financially literate

 

As a result, Indian women hold only about 60 per cent of the retirement wealth accumulated by men, the report notes.

 

Prosperity index

 

The WFPI evaluates women’s financial position across four dimensions: access, inclusion, agency and outcomes. India’s scores across these categories remain relatively low.

 

Access: 9.1 / 20 – Many women have bank accounts but mainly use them for withdrawals rather than investments

 

Inclusion: 5.8 / 25 – Formal financial product participation remains limited

 

Agency: 7.4 / 25 – Decision-making power and investment confidence remain weak

 

Outcomes: 5.8 / 30 – Few women are building long-term assets or retirement savings

 

Overall, the index suggests that more than two-thirds of the pathway to financial prosperity remains unfulfilled.

 

Why increasing women’s investments matters

According to the report, increasing women’s participation in capital markets and long-term investments could generate a cumulative “Rs 40 trillion GDP-equivalent opportunity for India”.

 

This growth would be driven by stronger domestic savings, deeper capital market participation, and more sustained long-term investment flows.

 

“India has built one of the world’s most extensive financial inclusion infrastructures. But inclusion without agency is an incomplete story. When women are given the right environment — confidence, community and products designed for their real lives — they do not just participate in markets, they lead them,” said Priti Rathi Gupta, cofounder of Lxme, a finance platform.

 

Financial systems need to address women’s economic realities better, said Saurabh Chandra, partner, financial services, at EY India. “The Rs 40 trillion opportunity shows the potential that can be unlocked by enabling financial policies and practices that support women’s economic needs.”.

 

A structural shift needed

The report, which claims to be the first of its kind, concludes that expanding bank account ownership alone will not deliver financial equality. Instead, policymakers, financial institutions and fintech platforms will need to design products and systems that reflect women’s income patterns, life stages and investment behaviour.

 

Unlocking women’s wealth, it argues, is not just a gender issue but a critical economic lever for India’s next phase of growth