India, a fast-growing economic giant, could boost its manufacturing output by 9% by welcoming more women into the workforce, according to the latest World Bank report. The announcement highlights the importance of women’s participation in the economy and its direct impact on national prosperity.
The report highlights that India’s economic growth is expected to stay on track, with GDP growth projected at 7% in fiscal year 2025 and 6.7% in 2026. This forecast is based on strong domestic demand in India, as well as faster recovery prospects in Sri Lanka and Pakistan.
According to World Bank experts, an unexpected increase in agricultural production and policies to boost employment growth are expected to contribute to strong growth in private consumption. In contrast, growth in government consumption is expected to moderate to reflect planned fiscal consolidation measures.
A key aspect highlighted by the report is women’s labor force participation in the region. It is noted that on average, in four South Asian countries, including India, the proportion of women in the labor force after marriage is 12 percentage points lower than before marriage. This raises critical questions about the challenges women face in their career paths.
Martin Raiser, World Bank Vice President for South Asia, highlights the positive impact that greater integration of women into the labor market and removal of barriers to investment and global trade could have on economic growth. Targeted policy reforms could not only boost the economy but also enhance gender equality and create opportunities for all.
The female labor force participation rate in India has increased significantly from 23.3 percent in FY 2017-18 to 41.7 percent in FY 2023-24, according to the latest data from the Periodic Labor Force Survey.
In conclusion, the integration of women into the labour market in India represents a considerable growth potential for the country’s economy. By promoting women’s emancipation and removing barriers to their active participation, India could not only increase its economic output but also foster more balanced and sustainable economic development for all its citizens.