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Women employment in India is emerging as a pivotal factor in the country’s quest to become a $30 trillion economy by FY47.

According to our Chief Strategy Officer Sumit Kumar, "The role of women in driving India's economic engine is increasingly coming to the forefront, yet there remains an untapped reservoir of potential that could significantly bolster the nation's growth."

Currently, women employment in India contributes just 18% to the GDP, highlighting both the significant contributions women make and the vast opportunities to enhance their participation in the workforce. Women-led enterprises, numbering around 15-16 million, already generate employment for 26-29 million individuals, showcasing the substantial impact of women entrepreneurs on job creation and economic growth. However, despite these contributions, women constitute only 24% of the workforce, even though they represent 48% of the population.

The Labour Force Participation Rate (LFPR) for women in India has shown gradual improvement, rising from 23.2% in Q2 FY23 to 24% in Q2 FY24, and from 23.3% in FY17-18 to 37% in FY22-23. This progress indicates a positive trend, but there is still a long way to go to fully harness the economic potential that women employment can offer.

The need to increase women employment in India stems from both the untapped potential they represent and the critical role they play in driving sustainable economic growth. With a workforce of over 500 million, only 158 million are women, highlighting a significant gender imbalance that restricts the nation's economic capabilities. To fully unlock the potential of its female population, India must integrate an additional 400 million women into the workforce, potentially adding $14 trillion to the economy by fiscal year 2047.

However, current projections suggest that only 110 million women are expected to join the labour force by then. To meet this goal, an additional 145 million women need to be brought into the fold. The economic implications of enhancing women employment in India are enormous, potentially boosting GDP growth by 9-10% annually if women, who make up 48% of the population, are more actively engaged in non-farm labour.

As India looks towards its ambitious economic future, fostering women employment will be crucial in driving sustainable growth and realizing the country's aspirations.

For more insights, check out the full interview with Sumit Kumar in the Entrepreneur India article