Despite significant progress in educational attainment and health outcomes, India lags in enabling women’s economic participation, which, in turn, impedes the goal of fast and inclusive economic growth. This article shows that formalising part-time employment and redistributing unpaid care work between men and women could raise female labour force participation by six percentage points, from 37% to 43%.
This is the first post of a five-part series to mark International Women’s Day 2025.
India’s quest for fast economic growth and social equity hinges on an obvious but underrated lever – its female workforce. Despite significant progress in educational attainment and health outcomes, the country lags in enabling women’s economic participation. A staggering 60% of India’s working-age women remain outside the labour force, depriving the economy of their contributions (Periodic Labour Force Survey, 2024).
Boosting female labour force participation rate (FLFPR) is not just a matter of gender equality; it is an economic imperative. Research by the International Monetary Fund (IMF) estimates that closing the gender gap in labour force participation could increase India’s GDP (gross domestic product) by 27% (Ostry et al. 2018). Higher FLFPR would lead to greater household incomes, improved standards of living, and enhanced economic productivity – Goldin (2006) emphasised that the rise in female labour force participation during the 20th century played a crucial role in enhancing household income growth in the United States, particularly among middle-class families. This increase enabled greater investment in education, healthcare, and nutrition, directly contributing to higher productivity and generating broader multiplier effects on the economy (World Development Report, 2012). The ripple effects extend beyond the economy. When women participate in the workforce, it shifts societal perceptions of gender roles, inspiring younger generations and fostering a culture of equality. Moreover, women’s financial independence contributes to better health and education outcomes for their families, creating a virtuous cycle of development (Afridi et al. 2016).
In a new study (Dev and Sahay 2025), we delve into two key barriers to women’s labour force participation: the unequal burden of unpaid care work and the lack of formal part-time employment opportunities. Our findings provide actionable insights for policymakers to unlock India’s untapped workforce potential.
Current landscape
India’s FLFPR stands at a meagre 32.8%, well below the global average of 48.7% as of 2023 (International Labour Organization, 2024) and OECD average of 67% in 2024. The reasons are multifaceted, stemming from the various barriers faced by women. A key barrier relates to unpaid domestic responsibilities that disproportionately burden women, such as child-rearing, elder care, and household chores. According to the ‘Time Use in India Report’ (2019), Indian women devote more than twice as much time to unpaid care work as compared to men, leaving them with limited opportunities for paid employment.
A second barrier faced especially by women is the absence of formal part-time work options. Unlike in advanced economies, where part-time employment is legislated, well-regulated and socially accepted, Indian does not have formal provisions for part-time work. Women who seek flexibility to balance professional and domestic duties often end up in informal, precarious jobs with no job security or social benefits. This dual burden of paid and unpaid work not only limits women’s career prospects but also affects their ability to contribute to India’s economy.
Our study
We quantify the increase in FLFPR when these two barriers are addressed. We use the ‘McCall-Mortensen job search model’ (McCall 1970) to simulate the impact of formalising part-time employment and redistributing unpaid care work between men and women. We find that addressing just two barriers faced by women could raise the FLFPR by six percentage points, from 37% to 43%.
The study identifies two key interventions:
Formalising part-time employment: Introducing formally recognised part-time work contracts with pro-rated wages and benefits would offer women the flexibility they need. Globally, women are more likely than men to engage in part-time employment, often due to the flexibility these roles offer. In India, however, the lack of formal recognition for part-time work means women often face exploitation and uncertain employment prospects.
Redistributing unpaid care work: Gender equality in caregiving responsibilities is crucial for enabling women to participate in the labour force. This requires both policy measures, such as paid parental leave and public investment in childcare infrastructure, and cultural changes that abandon traditional gender roles.
A comparative perspective
We highlight best practices from advanced economies that India could adapt. For instance, Scandinavian countries have robust policies for part-time work, parental leave, and subsidised childcare, which have significantly boosted female workforce participation. In France, part-time workers receive the same protections and benefits as full-time employees, ensuring equitable treatment. The European Union’s directives on part-time work, adopted in the late 1990s, mandate equal pay and social security for part-time workers. As seen in the table below, India’s labour laws, by contrast, remain silent on these issues, perpetuating systemic inequalities
Our findings underscore the need for a multi-pronged policy approach:
Formalising part-time work: India must define and formalise part-time employment. This includes setting hourly minimum wages (currently, the smallest unit for defining minimum wages in India is per day and not per hour), ensuring job security, and providing access to social security benefits. Formalising part-time work would create a structured pathway for women to enter the workforce while balancing caregiving responsibilities.
Investing in care infrastructure: Public and private investment in affordable childcare and eldercare facilities yields many benefits to private companies and the macroeconomy, as international studies have shown (Council of Economic Advisors, US). Such measures would not only reduce the caregiving burden on women but also create new employment opportunities in the care economy.
Promoting gender equality in caregiving: Policies like paid parental leave for both parents and tax incentives for shared caregiving responsibilities can help redistribute unpaid care work. Awareness campaigns to challenge societal norms and promote gender equity are equally important.
Flexible work policies: Employers should adopt flexible work arrangements, such as remote work and adjustable schedules, to support employees with caregiving responsibilities. This move would also be in the self-interest of companies because their output and productivity can be expected to increase (Bainbridge and Townsend, 2020).
Implementation challenges – and a call to action
While the benefits of these interventions are clear, their implementation poses significant challenges. Deeply ingrained cultural norms often resist change, making it difficult to redistribute caregiving responsibilities. Employers may be reluctant to adopt flexible work policies without government regulation. Additionally, the informal nature of India’s labour market, where over 80% of workers are employed, complicates the formalisation of part-time work.
Addressing these challenges requires coordinated efforts from policymakers, employers, and civil society. The government must take the lead by formalising labour reforms and investing in care infrastructure, as is common in many advanced economies. Employers should recognise the business case for diversity and flexibility, which have been shown to improve employee retention and productivity (Choi 2019). Civil society organisations should continue to play a crucial role in raising awareness and advocating for gender equality.
As the country aspires to become a developed nation by 2047, harnessing the potential of its female workforce is essential. By formalising part-time employment, redistributing unpaid care work, and promoting gender equality, India can unlock a brighter, more inclusive path for its society today and for future generations. The time to act is now.
