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To maximise India’s youth-driven economic potential, it must boost women’s participation in labour force

The often-quoted expression “demographic dividend” connotes the potential economic growth that can result from shifts in a population’s age structure. It implies the economic benefits resulting from a larger share of the working-age population.

Changes in a country’s population age structure can significantly have a positive effect on its economic performance, provided there is adequate and sufficient investment in human capital to leverage the productivity associated with it.

According to the Economic Survey of 2018–19, the share of India’s young population (below 19 years) has already started declining and is projected to drop from a high of 41per cent in 2011 to 25 per cent by 2041. Thus, the prospective demographic dividend will peak around 2041, with the share of the working-age population (20–59 years) expected to reach 59 per cent. This is expected to boost economic productivity, which occurs when people in the workforce are relatively outnumbered by dependents.

Women now constitute almost half of the country’s population. A similar trend is observed in the working-age population, reflecting an equal gender proportion in the working-age population. However, everything is not smooth sailing on the employment front.

Economic participation among women

Considering all economic activities, the share of young women (15–29 age group) in economic activity (Worker Population Ratio) was only about 19 per cent, while it was almost three times higher at 54 per cent for young men in 2022.

WPR is defined as the percentage of employed persons in the population. It is no different among the adult working population. Only 38 per cent of women (30-59 age group) are engaged in any economic activity, while it was 86 per cent for men.

It also revealed that about a quarter of adult women are engaged in domestic duties, while it is a meagre 0.6 per cent for men. As one understands, domestic duties, especially in one’s own household, are unpaid work. Thus, not only do women participate less in economic activities, but it is also unpaid for a quarter of those employed.

A similar trend was observed in the labour force participation rate (LFPR), which is defined as the percentage of the population in the labour force (i.e., working, seeking, or available for work) in the population. Women in the age group of 15–29 show an LFPR of 22 per cent as compared to their male counterpart at 61per cent.

It cannot even be argued that the lower LFPR among young women could be due to their involvement in education activities or skill upgrading, as no similar trend is observed among young men. Further, LFPR for women in the age group of 30-59 was at 39 per cent as compared to 86 per cent for men in the same age group.

Thus, WPR and LFPR for men in the age group of 15–29 years is almost three times that of women in the same age group, and it is more than twice in the age group of 30-59 years. The stark disparity is too obvious to ignore. This deep-rooted gender disparity will not only result in the under-utilisation of human capital but also paint an unreliable picture of employment.

Seizing the opportunity

It is without doubt that women are the most “underutilised asset” in the country. The optimal “demographic dividend” would heavily depend on their participation in productive and gainful economic activity. With women constituting almost half the population, their participation in economic activity will not only stimulate various economic activities leading to increased personal and household income but also push consumption levels.

The multiplier effect will lead to overall enhanced economic prosperity. To this end, it is necessary to create an environment that supports women’s education, especially higher and technical education, skills and capacity building, and upgradation. Both the government and private sector should be called upon to work on a road map.

The country’s economic growth would be greatly boosted if the transformative potential of the working-age population, including women, was properly harnessed and tapped. It is also aligned with the Sustainable Development Goals (SDGs) of Quality Education (Goal 4), Gender Equality (Goal 5), Decent Work and Economic Growth (Goal 8), and Reduced Inequalities (Goal 10). This should be one of the visions for “Viksit Bharat 2047.”

We owe it to the women of this country.

Nijara Deka and Palash Baruah are associate fellows at the National Council of Applied Economic Research (NCAER), New Delhi

Based on the NSSO’s data, a man spent an average of 74 minutes a day on childcare whereas a female spent a disproportionate length of 134 minutes a day on the same.

Furthermore, care given to other family members is so gender-defined that irrespective of any other paid activity, women spend a definite length of time in unpaid activities, specifically caregiving activities. About 40 per cent of women between 15 and 29 years of age are involved in caregiving activities as against only 12 per cent of men of the same age group. Among those outside the workforce — women neither looking for a job nor currently working — about 29 per cent do unpaid care activities as against only 7 per cent of men. This indicates how unpaid caregiving services have impacted the employability of women. Household responsibilities keep women outside the workforce, and the case is completely contradictory for unemployed men.

This data, though, does not prove that women’s engagement in unpaid caregiving work is the most likely contributor to their lower participation in the workforce.

It is undeniable that having a young child substantially decreases women’s autonomy over their own time. At the same time, it has a normatively less effect on men’s activities and time. This caregiving has been even costlier, both physically and emotionally, when it comes to daily wage earners, which adds an additional worry of having an unattended young child.

“Demographic dividend”, which is expected to boost economic productivity, occurs when there are more working people than dependents. While India should potentially soon reap the benefits of its demographic dividend, a recent study titled The Other Half of the Demographic Dividend by Sonalde Desai suggests that the actual rate would likely be significantly less than anticipated. She observes that the dependency ratio of the non-working-age population to the working-age population is more than double if the differences in worker population ratio are considered. Women constitute half of the country’s population. The India Employment Report 2024 also highlights the likelihood of young women (in the age group of 15 to 29) not being in employment, education, or training is higher at 48 per cent, which is almost five times that of men (at 10 per cent) in 2022. Also, a young woman spent six times more than the young man in unpaid activities as a share of the time spent in all activities.

The share of young men (15-29 age group) involved in economic activity (Worker Population Ratio or WPR) was 54 per cent, while that of young women of the same age group was only about 19 per cent. Thirty-two per cent of non-student young women who are in the workforce as against 97 per cent of non-student young men, according to the India Employment Report 2024. Consequently, the Worker Population Ratio (WPR) and Labour Force Participation Rate (LFPR) of males are approximately three times greater than those of women in the 15–29 age bracket, and over twice as great in the 30-59 age bracket.

Learn from these states

Tackling gender inequality in the workforce may result in a notable increase in economic output as well as the empowerment of women economically. Providing childcare might enhance their agency, aid in their pursuit of greater economic parity, and, as a result, greatly boost the economy. The National Crèches Scheme and the Palna Scheme under the Mission Shakti Project of the Ministry of Women and Child Development gave state governments the option to establish standalone crèches or convert Anganwadi centres into crèches in addition to the MBA. The Assam, Karnataka, Odisha, and Haryana state governments have begun to take action. The central government wrote to the states in November 2017 — four months after the deadline of MBA — requesting them to frame and notify rules for companies to set up the creche facility. Yet, only Karnataka had notified the maternity benefit rules as of May 2020. Tamil Nadu announced the regulations in January 2021, followed by Haryana in July 2023. The Shops and Establishments Act of Maharashtra has the clause. The following chart highlights the number of creches under the National Creche Scheme and also displays the states notified in the MBA. Central data maintenance is not available for the crèches operated by private NGOs and those covered by the MBA.

Childcare is neither a market commodity nor a social programme but a right of women. Empirical evidence proves a direct correlation between access to childcare and women’s labour force participation. The expansion in the caregiving economy not only gives greater opportunities to mothers but also creates formalised jobs for women to be engaged in the care economy. Apart from the crèche facilities, day-boarding is also an underexplored option as a solution. The model is prevalent only in big cities and is still at a nascent stage. It can actually provide a better panacea for all-round child development and, at the same time, build a holistic childcare ecosystem, which can support a working environment for women.

We have the national minimum standards and protocols for crèche facilities, as well as acts and amendments that establish the requirements of the childcare infrastructure. But the implementation of this requires some initiatives at the local level too. Some states have already taken up initiatives in this direction, which can be followed to create a well-thought-out strategy and a fiscal plan for implementing them in other states.

Nijara Deka is Associate Fellow, National Council of Applied Economic Research. Views are personal.

At the end of the first quarter of the 21st century, the vast majority of India’s population aged 5 and above, is literate through formal schooling. About 84 percent of men and 72 percent of women are literate, as per the Periodic Labour Force Survey (PLFS), 2021–22, Government of India. That being said, slightly more than one-fifth of the total population aged 5 and above is still not literate. It’s intriguing to explore the educational achievements of the children whose parents are among this group of non-literate adults!

There is a lot of literature that confirms that parents’ educational level has a very significant positive impact on a child’s educational outcomes. And much more prominent is the role of the mother’s education in the same. A well-known quote by Mahatma Gandhi reads, “If you educate a man, you educate an individual, and if you educate a woman, you educate an entire family.” But important insights can be drawn from the socio-economic profiles of the parents who are not literate through any formal education and whose children entered the education system for the first time in their families. These children may be termed “first-generation students.”

The PLFS data reveals that around 38 percent of the total population falls into the age group of 5–25 years. Among these young people, around 14 percent have parents who are not literate through formal education. The parents of approximately 14 percent of children are not literate. Out of this 14 percent, about 88 percent have gone to school, becoming the first in their families to step into the formal education system. And another 12 percent of the of the children have not received any formal education.

It was found that the majority of first-generation schoolchildren are from rural areas; about three-fourths belong to the bottom two expenditure quintiles; over 40 percent are from SC/ST communities; and about 60 percent are boys.
Further, approximately two-thirds of these first-generation students have completed their education up to the middle level; 18 percent have completed secondary or higher secondary education, and another 3 percent have reached higher education (graduation or post-graduation).

The data also reveals that the children of non-literate parents (12 percent) have not received any formal education either. They are mostly from rural areas and low-income groups. Around 85 percent of them are from the bottom two expenditure quintiles; more than 80 percent belong to rural areas; around 56 percent are boys; and 43 percent are from SC/ST communities.

Further probing on the whereabouts of the 12 percent non-literate children of the non-literate parents reveals that approximately 22 percent of these children are engaged in direct income-generating activities, and another 10 percent are involved in indirect economic activities for their families. Around one-fourth of them are involved in domestic duties, like household chores, caregiving, and other responsibilities.

A little more than 5 percent of the non-literate children are disabled, and the largest proportion, approximately 41 percent, is neither participating in formal education nor engaged in any economic or domestic activities.
Such a situation may require targeted interventions aimed at improving access to education, economic opportunities, and support services for individuals in this demographic group. While there are already many scholarship programs and initiatives to ensure that financial barriers should not be a reason for any child to remain uneducated, many children are still out of the education system.

As goes the Tibetan proverb, “A child without education is like a bird without wings,”  it is crucial that every child be enrolled in school. This will require necessary support for first-generation students, both academic and financial, and mentorship as well as career counselling programs. Also, policymakers can prioritise focused initiatives aimed at uplifting non-literate individuals, especially parents, to break the cycle of intergenerational illiteracy. Given the significant influence of parental education on children’s educational achievements, policies can focus on empowering parents, particularly mothers who are under 50 years old, through literacy programs and adult education initiatives.
In summary, many children who have already broken the barriers in their families and have set foot into the classroom have paved the way for future generations. But for the other less fortunate children, the constraints are many, due to which they remain stuck in the cycle of illiteracy, struggling to break free. Overall, a concerted effort from policymakers, educators, and community stakeholders is imperative to create an inclusive and equitable education system that enables every child to reach their full potential.

The authors are Prabir Kumar Ghosh (Sr. Fellow) and Chanchal Negi (Research Analyst), at the National Council of Applied Economic Research.