Despite significant strides in gender equality, women in India continue to contribute just 18% to the country’s GDP. A staggering 196 million employable women remain outside the formal labor force, highlighting a critical gap in India’s economic participation. This underutilization of female talent not only hampers national growth but also limits India’s ambition to become a $30 trillion economy by 2047. As gender equality becomes increasingly essential for inclusive economic progress, the need to address this disparity has never been more urgent.
India’s economic growth is closely tied to the full participation of women in the workforce. Despite significant strides, women still contribute just 18% to India’s GDP, with nearly 196 million employable women remaining outside the labor force. While female labor force participation has improved to 41.7%, only a small fraction holds formal jobs. This gap presents a significant barrier to India’s ambition to become a $30 trillion economy by 2047. Recent initiatives like the Women’s Economic Empowerment (WEE) Index in Uttar Pradesh demonstrate how gender-specific data can drive policy reforms and economic change.
The Importance of Gender-Disaggregated Data in Economic Reforms
India collects a variety of economic and social statistics, but data that is disaggregated by gender is rare. This absence of gender-specific data hides systemic inequalities, delaying progress and deepening exclusion. The WEE Index tracks women’s participation across five critical areas: employment, education and skilling, entrepreneurship, livelihood and mobility, and safety and infrastructure. It highlights where women face barriers and where they drop out, shifting the focus from simple participation to addressing underlying structural challenges.
Uttar Pradesh’s WEE Index: Key Insights and Impact
Uttar Pradesh’s WEE Index has uncovered important gaps in gender equality. While women make up more than half of enrollments in skill development programs, they represent only a small share of entrepreneurs, with limited access to credit. In the transportation sector, the low number of women bus drivers and conductors prompted targeted recruitment strategies and infrastructure changes, such as the introduction of women’s restrooms at bus terminals. These reforms, driven by gender-specific data, show how targeted actions can address the unique challenges women face in the workforce.
Integrating Gender Data into Governance and Policy
To close the gender gap, gender-disaggregated data must be integrated into all government sectors. This includes areas such as housing, transportation, and micro, small, and medium enterprises (MSMEs). Local governments must build capacity to collect and use this data effectively. Data tracking should go beyond enrollment figures to include metrics such as retention rates, leadership roles, and the quality of employment. This is especially important after secondary and tertiary education, where female dropout rates tend to increase.
Rethinking Gender Budgeting for Economic Empowerment
Gender budgeting should not be confined to women’s welfare programs or the finance department. Every rupee spent across sectors like education, energy, and infrastructure should consider gender equality. Effective budgeting requires accurate measurement. Without gender-disaggregated data, resources may not be allocated where they are most needed, thus limiting the effectiveness of women’s economic empowerment programs.
Scaling the Women’s Economic Empowerment Model Across India
Uttar Pradesh’s WEE Index offers a replicable model for other states aiming for inclusive economic growth. States like Andhra Pradesh, Maharashtra, Odisha, and Telangana, which are working towards trillion-dollar economies, can adopt similar frameworks. District-wise gender action plans, informed by gender-disaggregated data, can guide budget allocation, infrastructure development, and policy reforms. This data-driven approach can unlock the full potential of India’s female workforce and accelerate the country’s path toward inclusive and sustainable growth.
Women’s Role in Shaping India’s Economic Future
India’s gender gap has been a longstanding challenge, but evolving responses and data-driven solutions are crucial to change. Making women visible in policy and data is the first step toward bridging this gap. The WEE Index serves as a starting point to move women from the margins to the mainstream. To achieve inclusive growth, it is essential to transform how gender is measured and addressed at every level of governance.
By integrating gender-disaggregated data into governance and policy decisions, India can empower women economically, ensuring that women’s contributions to the workforce are recognized and fully leveraged for national growth.