Formalising part-time work with fair pay, making transport and housing women-friendly, and enforcing laws. Otherwise, urban women’s work participation will be stuck at 28%

As India’s economy rapidly transforms and modernises riding on a youthful population, a booming digital and physical infra, and a spirit of optimism, conditions are favourable for the country to become a global economic powerhouse. Yet, a glaring omission persists: the full and equal participation of women in the workforce.

India vs the rest | While Indian women now outpace many global peers in education, comprising over 45% of undergraduates, their participation in the labour force, especially in urban areas, remains alarmingly low at just 28%, half of the remaining G20 average that exceeds 56%.

Globally, 47% of women are active in today’s labour markets, compared with 72% of men. This has immense economic growth potential for India, as well as the global economy.

IMF estimates emerging and developing economies could boost GDP by about 8% over the next few years by raising the rate of female labour force participation (FLFPR) by nearly 6 percentage points. This is the average amount by which the top 5% of countries reduced the participation gap during 2014-19.

Missing half the workers | Across countries, high FLFPR are driven by several enablingvpolicies: child and elderly care infra; safe and affordable housing and transportation; equalvaccess to real and financial assets; existence of flexible and part-time work; and social andvcultural norms.

Sweden, for example, has formalised part-time work and spends over 1.5% of GDP onvsubsidised childcare, lifting FLFPR to more than 80%. In Chile, universal early childhood programmes have increased maternal employment by over 10 percentage points.

Countries like Egypt have seen female employment rise through dedicated women-only metro cars. Meanwhile, advanced economies like Netherlands and Germany have unlocked female talent by ensuring part-time work comes with the same protections and pay as full-time roles.

Counting barriers | What has been India’s record in addressing barriers that prevent women from fully participating in the economy? Formalised part-time work simply does not exist.

In keeping with its goal to promote women’s economic empowerment and women-led development, Centre has in place at least 40 programmes across ministries in rural and urban areas. These are yielding results in rural areas, doubling FLFPR from 24% in 2017- 18 to around 48% in 2023-24. However, with FLFPR at 28% in 2023-24 in urban areas, these programmes are yet to make substantive difference. Many of the efforts remain scattered, underfunded, and not of high quality.

Mend infra gaps | A recent paper analysing a job-search model grounded in Indian data, found that formalising part-time employment contracts and gender-equitable burdensharing of unpaid care work could raise overall FLFPR by 6 percentage points from 37% to 43%.

This has two policy implications. First is to address gaps in formal part-time employment. Current labour codes recognise only full-time employment (48 hours/week), leaving millions of part-time workers unprotected. India needs to align with ILO standards to ensure part-time work guarantees fair pay, equitable benefits, and legal safeguards. Formalising part-time employment and introducing flexibility in working hours is lowhanging fruit as it can be implemented quickly.

Second, closing gaps in women-friendly infra. For example, very few Anganwadis operational in India meet quality benchmarks and elder care is virtually non-existent beyond big cities. There is limited women-only public transport, an acute shortage of working women’s hostels, and weak enforcement of anti-harassment laws, with less than 7% of sexual harassment cases resulting in convictions.

Learn from states | While some Indian states are already leading the way — Tamil Nadu, for example, with its expansion of working women’s hostels and Kerala with its self-help groups — much more is needed. India stands to gain immensely by activating its ‘missing’ female workforce. Capital investments in digitalisation, ports, highways, railroads, and bridges are undoubtedly transforming India’s economy.

But this transformation also requires building crèches and elder care facilities with the same urgency as roads; constructing working women’s hostels like highways; and ensuring safe and reliable public transport for women as more metro systems and buses are introduced. In addition, strict enforcement of existing laws on safety, harassment, maternity benefits, tax credits for private care facilities, and rural eldercare cooperatives could go a long way.

Investing in increasing FLFPRs will transform the living standards of families and raise GDP to even higher levels, paving the way for changing patriarchal norms and mindsets as it benefits everyone. In short, investing in women isn’t just a matter of equity — it is smart economics.

The writers are with NCAER. Views expressed are personal.