India is likely to miss the target of achieving $30 trillion economy by 2047 because there could be a shortage of 145 million in female workforce to meet the country’s economic goals, as per a report by consulting firm Bain & Company and Magic Bus India Foundation.
India is projected to add just 110 million women to its workforce by 2047, reaching a female labour force participation rate (FLFPR) of 45% – that is a total of 255 million of working women by 2047. However, the country needs 400-million-strong women workforce by 2047 to achieve the gross domestic product (GDP) of $30 trillion in the next 23 years, the report found.
“A nearly 45% ($14 trillion) contribution from the country’s women workforce will be an integral to achieving this economic goal. This entails doubling the FLFPR among Indian women aged 15 to 59 years from 35-40% currently to approximately 70% by 2047,” the report said.
The report highlights that the challenges to join the formal workforce are distinct for rural and urban women. For instance, women in rural areas have to deal with limited job opportunities and unstable work environments which reduces their workforce participation. The urban women, on the other hand, face challenges such as job-skill mismatches and wage disparities.
The report said that a cohesive effort from the government, private sector, non-profits and investors is necessary to create infrastructure, policies, and funding to support women’s integration into the workforce. It has also asked for gender-inclusive policies, financial literacy programmes, and improved market access for women entrepreneurs.
“India’s growth story is unlikely to play out fully without enhanced women’s participation in the labour force. Yet, their participation remains far below the potential. The report lays out a clear strategy to double female labour force participation by 2047. Whether it is empowering rural women through an ecologically-embedded entrepreneurship ecosystem model or enabling professional readiness, growth, and resilience (PROGRES) for urban women through tailored skills training, flexible work environment and childcare support, India can unlock $14 trillion in economic value from women alone,” said Navneet Chahal, partner at Bain & Company.