'Public investment of 2% of GDP can create 11 mn jobs, majority for women'

Direct public investment of 2 per cent of India's GDP can potentially generate 11 million jobs, nearly 70 per cent of which will go to women, according to a report released by Ficci Ladies Organisation (FLO) on Wednesday.

The FLO also unveiled a roadmap for transforming India's care economy, including five key areas, leave policies, care service subsidies, investment in care infrastructure, skill training for care workers, and quality assurance mechanisms.

"In India, the Ministry of Labour and Employment can consider supporting MSMEs and startups financially for maternity leave, revising parental leave policies, and promoting care work leave and flexible work options. This could include introducing market-based financing for leave, such as parental leave insurance. Employers are encouraged to adopt gender-neutral care work leave and flexible work options," Ficci Ladies Organisation (FLO) stated.

It said collaboration between government agencies and industry bodies can promote these initiatives, especially among smaller businesses, with a focus on monitoring and sharing success stories.

"Evidence from the International Labour Organisation suggests that increasing investments in the care services sector have the potential to generate 475 million jobs globally by 2030. For India specifically, direct public investment equivalent to 2 per cent of GDP can potentially generate 11 million jobs, nearly 70 per cent of which will go to women," the report said.

In India, care service subsidies and incentives are typically offered through government schemes like Mission Shakti, focusing on women's safety, security, and empowerment.

Enhancements to these schemes could involve wider financial support for child-care, elderly care, and long-term care services, particularly in rural and under-served areas.

Underlying the importance of the paid care sector, FLO President Sudha Shivkumar said, "The paid care sector has to be regularised, it has to be organised, it has to be institutionalised. We need more skilled workers in that space, we need policies, we need very fair norms that govern them, we need insurance to support them".

According to her, the undervaluation and invisibility of care work, predominantly performed by women, has resulted in a market failure, where skilled and talented women are unable to realise their economic potential, leading to a misallocation of resources at the macroeconomic level.

According to FLO, enhancing investments in the care economy has the potential to not only bridge gender gaps in women's labour force participation but also unlock a new economic segment for emerging economies, creating increased economic output and jobs in the care work services sector.