Mumbai: Plummeting fertility is narrowing
the window for India to get rich before it gets old. Many more women need to
enter and progress in paid work, according to a new study released by Axis
Bank, one of the largest private sector banks in India.
Titled “The
Missing Half: Women and India’s Growth Challenge”, the report draws
on global evidence, deep analysis of Indian data, and a proprietary survey
of nearly 11,000 college-educated women across 42 Indian cities.
The report argues that to sustain
a growth of around 7% over 25 years, necessary for ‘Viksit Bharat’ by 2050,
overall worker participation in paid work must rise from about 47% to nearly
60%. Women’s participation in paid work will be critical to achieving this.
A structural challenge
However, at present, India has one
of the lowest female labour force participation rates in paid work among G20
economies. Further, even employed women are mostly in agriculture,
self-employed, or in unpaid work.
·
~60% of
women in paid work are in informal arrangements without contracts or
social security benefits. 61% of women workers are engaged in agriculture.
·
125 million educated women are outside
the workforce with 60% of graduates opting to stay out of paid work
·
Studies
show a ~20% drop in women’s workforce participation in India post
marriage
·
Participation
falls further after childbirth. It is a global challenge: even in
advanced economies mothers’ employment falls ~25% after childbirth, and
earnings ~33%
·
61% of
surveyed women cite safety and mobility as the top barrier to entering
the workforce.
The report finds India is climbing
out of the bottom of the ‘U’ curve formed when countries’ participation is
plotted against incomes, but the progress is slow given the growth ambitions.
Recent improvements in household infrastructure -- electricity, clean cooking
fuel, piped water and better housing -- have eased unpaid work burdens, and
rising higher education enrolment among women, is softening the “marriage
penalty.”
Major demand-side barriers persist
However, non‑farm jobs in proximity
to women’s homes remain scarce. Demand for labour is a general challenge in
India, evidenced by high informality and low-quality self-employment even among
men; cultural norms do not require women to go through this charade of
disguised unemployment. This also slows the shift in norms necessary to
accelerate their participation. Concerns around safety, mobility, childcare and
inflexible job structures, continues to hold women back. Moreover, India has
too few jobs in sectors that are globally dominated by women and employ women
at scale.
Global lessons, contemporary relevance
To understand how other economies
overcame similar constraints, the report traces a century long shift, best
documented in the US, where women have moved from the margins to the centre of
economic life. This shift was driven by better education, changing economic
structure, technological advancements, legal reforms, reproductive autonomy,
and evolving norms. Women themselves shifted to viewing work as a ‘career’ and
core to their identity, instead of a ‘job’.
Whereas the gender gaps in income
coming from the ‘marriage penalty’ and bias have nearly disappeared, the
‘motherhood penalty’ persists -- entry-level gaps have narrowed, but
inequalities widen after childbirth. Occupations that reward long, inflexible
hours penalise career breaks. The pressure to choose between careers and
children is also why fertility rates are falling.
The study warns India, which still
has a large ‘marriage penalty’, in addition to the ‘motherhood penalty’ and
other biases, must address challenges with job design, childcare support and re‑entry
pathways to accelerate participation.
What India’s college-graduate women say
Axis Bank’s proprietary survey shows
a clear shift in aspirations. Most women now view paid work as a career and
part of their identity, aiming to build their lives around “career and
family” rather than choosing one over the other.
Yet marriage, caregiving demands,
workplace structures and social expectations continue to influence how women
enter, progress in and return to work. Reentry after breaks remains
particularly challenging, with women citing rigid hiring norms, skill loss,
age bias and limited flexible roles as major hurdles. Structural support,
such as childcare, flexible work options, safer commuting and credible return
to work pathways, matters far more than inspiration alone.
Not merely a social issue, but a growth
imperative
The report concludes that raising
women participation in the workforce is central to India’s long-term growth,
and an economic imperative, not just a social addon. It calls for
coordinated action to expand jobs in sectors where women work at scale,
formalise flexible and parttime roles, invest in childcare and safer urban
mobility, remove outdated regulatory barriers, and strengthen leadership
pipelines.
Commenting on the launch, Neelkanth
Mishra, Chief Economist, Axis Bank & Head of Global Research, Axis Capital,
said, “Given how little time we have,
we need ‘all hands on deck’. We have made significant progress in improving
household productivity via pucca houses, electricity, piped water, and dense
energy access. Several states have achieved gender parity in gross enrolment
ratios. But we must raise demand for labour, improve urban infrastructure,
remove outdated legal barriers, and work on childcare facilities and workplace
flexibility to get the ‘missing half’ into the workforce.”
Rajkamal Vempati, Group Executive
& Head Human Resources, Axis Bank, said, “India’s growth ceiling is
directly tied to its glass ceilings, with 125 million of our educated women
remaining on the sidelines. The next decade of growth belongs to the
organisations that redesign careers for fluidity – allowing women to step in
and return without penalty. Adding 22 percent points to women’s workforce
participation isn’t just a social goal; it is the single most important
economic lever we have.”
Click here for full report:
The
Missing Half: Women and India’s Growth Challenge