India's Growth Needs Women in Workforce: Axis Bank Study Warns

The report titled "The Missing Half: Women and India's Growth Challenge" argues that to sustain a growth of around 7 per cent over 25 years, necessary for 'Viksit Bharat' by 2050, overall worker participation in paid work must rise from about 47 per cent to nearly 60 per cent. This can only be achieved with active women's participation in paid work.

It is important to note that at present, India has one of the lowest female labour force participation rates in paid work among G20 economies.

Further, even employed women are mostly in agriculture, self-employed, or in unpaid work.

60 per cent of women in paid work are in informal arrangements without contracts or social security benefits. 61 per cent of women workers are engaged in agriculture.

125 million educated women are outside the workforce, with 60 per cent of graduates opting to stay out of paid work.

Studies also show a 20 per cent drop in women's workforce participation in India post marriage.

Participation falls further after childbirth, which is a global challenge. Even in advanced economies, mothers' employment falls by 25 per cent after childbirth.

The report finds India is climbing out of the bottom of the 'U' curve formed when countries' participation is plotted against incomes, but the progress is slow, given the growth ambitions.

Recent improvements in household infrastructure -- electricity, clean cooking fuel, piped water and better housing -- have eased unpaid work burdens, and rising higher education enrolment among women is softening the "marriage penalty."

However, non-farm jobs in proximity to women's homes remain scarce. Demand for labour is a general challenge in India, evidenced by high informality and low-quality self-employment even among men; cultural norms do not require women to go through this charade of disguised unemployment.

This also slows the shift in norms necessary to accelerate their participation. Concerns around safety, mobility, childcare and inflexible job structures continue to hold women back. Moreover, India has too few jobs in sectors that are globally dominated by women and employ women at scale.

Commenting on the launch, Neelkanth Mishra, Chief Economist, Axis Bank & Head of Global Research, Axis Capital, said, "Given how little time we have, we need 'all hands on deck'. We have made significant progress in improving household productivity via pucca houses, electricity, piped water, and dense energy access. Several states have achieved gender parity in gross enrolment ratios. But we must raise demand for labour, improve urban infrastructure, remove outdated legal barriers, and work on childcare facilities and workplace flexibility to get the 'missing half' into the workforce."

The study warns India, which still has a large 'marriage penalty', in addition to the 'motherhood penalty' and other biases, must address challenges with job design, childcare support and re-entry pathways to accelerate participation.

Axis Bank's proprietary survey shows a clear shift in aspirations. Most women now view paid work as a career and part of their identity, aiming to build their lives around "career and family" rather than choosing one over the other.

Yet marriage, caregiving demands, workplace structures and social expectations continue to influence how women enter, progress in and return to work. Re-entry after breaks remains particularly challenging, with women citing rigid hiring norms, skill loss, age bias and limited flexible roles as major hurdles. Structural support, such as childcare, flexible work options, safer commuting and credible return to work pathways, matters far more than inspiration alone.

The report concludes that raising women's participation in the workforce is central to India's long-term growth and an economic imperative, not just a social add-on. It calls for coordinated action to expand jobs in sectors where women work at scale, formalise flexible and part-time roles, invest in childcare and safer urban mobility, remove outdated regulatory barriers, and strengthen leadership pipelines.

Rajkamal Vempati, Group Executive & Head Human Resources, Axis Bank, said, "India's growth ceiling is directly tied to its glass ceilings, with 125 million of our educated women remaining on the sidelines. The next decade of growth belongs to the organisations that redesign careers for fluidity - allowing women to step in and return without penalty. Adding 22 percent points to women's workforce participation isn't just a social goal; it is the single most important economic lever we have."

- ANI