Explained: Gender parity can boost economy

By: | Updated: June 23, 2018 3:52 AM

At present, the contribution of women to India's GDP is 18%—one of the lowest proportions in the world—reflecting the fact that only 25% of the country's labour force is female, says a McKinsey Global Institute (MGI) report that studied the economic cost of gender inequality and related issues.

The report suggests that the government should make a concerted effort to expand job opportunities for women and expand training and connectivity to markets.

India can add $770 billion to its GDP by 2025—18% higher than business-as-usual GDP—if it addresses gender inequality at work and in society. At present, the contribution of women to India’s GDP is 18%—one of the lowest proportions in the world—reflecting the fact that only 25% of the country’s labour force is female, says a McKinsey Global Institute (MGI) report that studied the economic cost of gender inequality and related issues. The study underlines that more than 70% of the potential GDP opportunity would come from increasing women’s participation in the labour force by 10 percentage points.

 

In the Asia-Pacific region, advancing gender equality could add $4.5 trillion to the region’s collective GDP by 2025, a 12% increase over the business-as-usual trajectory. China, where women contribute 41% to the overall GDP and comprise 44% of the workforce, would benefit the most ($2.6 trillion addition to its GDP) by addressing gender inequality. In the Asia-Pacific region, women contribute 36% to GDP and make up 37% of the workforce, almost in line with the global figures of 36% and 39%.

The report suggests that the government should make a concerted effort to expand job opportunities for women and expand training and connectivity to markets.

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