The study draws on global research, detailed Indian data, and a survey of nearly 11,000 college-educated women across 42 cities. It warns that to sustain around 7% GDP growth over the next 25 years—a target necessary for achieving a ‘Viksit Bharat’ by 2050—overall workforce participation must rise from about 47% today to nearly 60%, with women’s engagement being a critical driver.
Low participation and structural barriers
India has one of the lowest female labour force participation rates among G20 countries. Even among employed women, most work in agriculture, informal arrangements, or unpaid roles:
- About 60% of women in paid work lack contracts or social security benefits.
- Around 61% of women workers are in agriculture.
- Roughly 125 million educated women remain outside the workforce, with 60% of graduates opting out of paid work.
- Workforce participation drops by about 20% post-marriage and falls further after childbirth.
- Safety and mobility concerns top the list of barriers, cited by 61% of surveyed women.
While improvements in household infrastructure—electricity, clean cooking fuel, piped water—have eased unpaid work burdens, and higher education is reducing the “marriage penalty,” demand-side constraints persist. Jobs near women’s homes remain limited, and inflexible workplace structures, lack of childcare support, and social norms continue to impede participation.
Lessons from global experience
The report examines historical trends in the US, where women shifted from the margins to the centre of economic life over the past century. Key enablers included better education, changing economic structures, legal reforms, technological advances, reproductive autonomy, and evolving social norms.
Yet India still faces significant hurdles: the “marriage penalty” remains high, and the “motherhood penalty” penalises career breaks. Many sectors that globally employ women at scale are underdeveloped in India.
Aspirations vs reality
Surveyed women view work as a career and central to their identity, seeking to balance career and family rather than choosing between the two. However, reentry after career breaks is challenging due to rigid hiring norms, skill gaps, age bias, and limited flexible roles. Structural support—childcare, flexible work, safer commuting, and credible return pathways—is crucial.
Economic imperative
Axis Bank’s report frames higher female workforce participation not just as a social issue but as a growth imperative. Coordinated action is needed to expand jobs in women-dominated sectors, formalise flexible roles, invest in childcare, improve urban mobility, and strengthen leadership pipelines.
“India’s growth ceiling is directly tied to its glass ceilings,” said Rajkamal Vempati, Group Executive & Head Human Resources, Axis Bank. “Adding 22 percentage points to women’s workforce participation isn’t just a social goal; it is the single most important economic lever we have.”
Neelkanth Mishra, Chief Economist at Axis Bank, added, “We must raise demand for labour, improve infrastructure, remove outdated legal barriers, and work on childcare facilities and workplace flexibility to get the ‘missing half’ into the workforce.”
