Why Economic Survey says women-led growth needs care and mobility reforms

The Economic Survey says rising female workforce participation must be backed by safer mobility, care infrastructure and flexible work to unlock women-led growth and shared domestic responsibilities

The Economic Survey for the financial year 2025–26, tabled in Parliament on Thursday, said women are central to India’s vision of becoming a developed nation by 2047. The Survey noted that India’s future growth is expected to be led by women and that increasing their participation in the workforce is essential for long-term economic progress.

Why is women’s workforce participation critical for growth?

The Survey noted that increasing women’s participation to around 55 per cent by 2050 could be critical for maintaining a high annual gross domestic product (GDP) growth trajectory.

 

It stressed that higher employment of women is not just about equality. It helps families earn better, improves overall productivity, and makes the economy stronger and more stable.

 

 

The Survey said that while women’s participation in paid work is rising, the imbalance underscores the need for policies that promote shared domestic responsibilities and better care infrastructure.

How can women’s participation in the workforce be boosted?

The Economic Survey said women continue to face several challenges, including poor mobility, lack of affordable housing and rigid work conditions that clash with caregiving duties. To address this, it suggested action on multiple fronts.

• Improving access to STEM: The Survey said many educated women are still in low-paid or part-time jobs, and few with higher degrees are employed. Women are also underrepresented in science and technology. Encouraging more girls and women to study STEM can open better opportunities.
• Improving urban mobility: Cities offer better jobs, but travel, safety concerns and caregiving duties limit women’s choices. The Survey suggested safer public transport, affordable last-mile travel, more women police patrols and drivers, and well-lit walking and cycling paths.
• Affordable housing for working women: Safe hostels and low-cost rental homes near workplaces can help women take up urban jobs. Schemes such as Sakhi Niwas and Tamil Nadu’s working women hostels were cited as models.
• Care economy: More Anganwadi centres, community crèches and employer-supported childcare can reduce unpaid care work. Care services can also create formal jobs for women.
• Skill development: Training should match industry needs in manufacturing, green energy, digital services and food processing. Special return-to-work programmes can help women rejoin jobs after career breaks.
• Flexibility in employment: The Survey called for work-from-home and hybrid options, noting that new labour laws allow women to work from home after maternity leave.

What the Survey shows on women’s workforce participation

The Survey pointed out that women’s participation in the workforce has improved in recent years. The Female Labour Force Participation Rate (FLFPR) rose to 41.7 per cent in 2023–24 from 23.3 per cent in 2017–18. During the same period, the unemployment rate fell to 3.2 per cent from 5.6 per cent.

 

The Survey also noted that more women are running their own businesses. The share of women-headed establishments increased to 26.2 per cent in 2023–24 from 24.2 per cent in 2021–22. Manufacturing recorded the highest share of women-led establishments.

 

States such as West Bengal, Karnataka, Gujarat and Andhra Pradesh, which have more women-led businesses, also record higher participation of women in the workforce.