News Highlights:
- India’s World Bank index: India’s score in World Bank index measuring the life cycle of a working woman dropped to 74.4 points out of a possible 100 because of laws affecting the wages and pensions of Indian working women that do not provide equality with Indian men.
- According to the World Bank’s Women, Business and the Law 2023 report, a 100 on the Index means that women are in equal standing with men on all the measured indicators.
Highlights of the Report:
- India’s score:
- India’s score on a World Bank index on the life cycle of a working woman dropped to 74.4 out of a possible 100 due to rules influencing working women’s income and pensions that do not guarantee equality with Indian males.
- According to the Women, Business and the Law 2023 study from the World Bank, a score of 100 on the Index indicates that women and men are on equal footing across all variables.
- Report claims:
- The report stated that India received a perfect score for restrictions on freedom of movement, legislation impacting women’s employment options, and restrictions relating to marriage.
- India remains behind other countries in legislation governing women’s wages, pensions, and ability to work after having children, barriers to women beginning and running their businesses, and differences in property and inheritance between men and women.
- World Performance:
- India outperformed the South Asian region’s average score of 63.7 but fell short of Nepal, which achieved the best score in the area (80.6).
- Only 14 of the 190 countries have received a score of 100 out of 100; Belgium, Canada, Denmark, France, Germany, Greece, Iceland, Ireland, Latvia, Luxemburg, The Netherlands, Portugal, Spain, and Sweden.
India’s female labour force:
- Female employment trends:
- The participation of women in the workforce in India has remained low.
- While 37.1 per cent of the youth are in the labour force, there is a stark difference between the participation rate of men (57.1 per cent) and women (12.7 per cent).
- India lacks a coordinated labour structure and gender parity.
- 3 of every 4 women in India do not participate in any recognised economic activity.
- More than half of our youth do not participate in the formal labour force, so it is challenging to realise India’s demographic advantage.
- One of the ways to narrow the gender gap in India’s workforce is to focus on the country’s 253 million youth (aged 15-24 years), of which 48.5 per cent are young women.
- Periodic Labour Force Survey (PLFS)
- The recently released Periodic Labour Force Survey (PLFS), 2018-19 indicates a dramatic fall in total employment for men, and more so women, who faced a decline in labour participation rates (from 2011 to 2019) in rural areas from 35.8% to 26.4%, and stagnation in urban areas at around 20.4%.
- Gender wage gap
- The gender wage gap is the highest in Asia, with women 34% below men (for equal qualification and work), according to a 2019 Oxfam report.
- This stifles women’s labour force participation, despite the guarantees of India’s Equal Remuneration Act 1976.
- Agriculture employs
- Agriculture employs nearly 60% of women, who form the bulk of landless labourers in an almost completely informal sector with no credit access, subsidies, minor equipment, or abysmal assets.
Challenges faced by the female labour force:
- Male-dominated Society:
- India is a male-dominated Society in which men largely control the Economic, Political, Religious, Social and Cultural institutions.
- Control over women’s livelihood Choices and Sexuality has existed and evolved over Centuries through various discriminatory Social Practices and Institutions.
- Many women are not allowed to work after marriage. Further, child care is considered the sole responsibility of women, which discourages women from joining the labour force.
- No comprehensive policy:
- There is no comprehensive policy support and a lack of effective implementation.
- Financial Constraints:
- Many families don’t have enough resources to invest prudently in their children.
- This inhibits expenditure on women’s health and education, resulting in poor participation.
- Security Concerns:
- The high incidents of violence against women discourage women from working at night like their male counterparts.
- Further, instances of sexual exploitation at work induce women to opt out of the labour force due to family pressures.
- Political Vacuum:
- Women constitute around 50% of the Indian population however, the current Lok Sabha has only 14.4% women.
- This inhibits a more gender-supportive policy formulation for encouraging participation in economic activities.
- This also reflects a lack of gender perspectives in legislation.
- Lack of access to health and childcare
- A study by the ILO in 2016 pointed out that poor access to quality childcare services forces women workers to leave the labour force.
- This ceases their earning and exposes them to discriminatory employment practices and significant economic and health risks.
Significance of enhancing the female labour force:
- Tackling poverty:
- Female participation will ensure higher disposable income and reduce the poverty levels in society.
- It will also tackle the phenomenon of feminisation of poverty resulting from highly formalised work performed by women
- Improvement in Social Indicators:
- Encouraging more women to enter the formal workforce will improve indicators like IMR, MMR etc.
- This would happen as women will get access to good health facilities and avoid child marriage.
- Self-Confidence and Dignity:
- Women who can earn for themselves are more confident and prefer to live a dignified life.
- Financial independence enables women to play a more significant role in decision-making, like family planning.
- Global Commitments:
- The International Labour Organisation charter, UN Declaration on Human Rights etc., place a positive obligation to enhance female participation.
- Improving FLFPR is related to achievements of SDG 1 (No Poverty), SDG 5 (Gender Equality), SDG 8 (Decent Work and Economic Growth) and SDG 10 (Reduced inequalities).
- Economy Boost:
- McKinsey Global Institute had estimated that by 2025, equal opportunities for women in India could add US$ 700 billion to the economy.
- Similarly, the IMF chief has said that gender parity in the workforce can improve India’s GDP by 27%.
Pic Courtesy: Freepik
Content Source: The Hindu