India’s growth story has long revolved around one statistic: its youth. With over 65% of its population under 35, policymakers and economists have celebrated the promise of a demographic dividend. But beneath this enthusiasm lies a missing variable: the gender dividend. A massive, largely untapped segment of the working-age population that holds the key to India’s real economic potential: women.
The data is revealing. While India’s female population is projected to reach 743 million by 2036, their contribution to the GDP remains dismally low, just 18%, well below the global average. Despite recent improvements in female labour force participation, much of it stems from unpaid or informal work. Formal inclusion remains painfully slow, and the window of opportunity is closing as India’s fertility rate declines and the demographic advantage begins to flatten.
This article explores the scale and scope of India’s gender dividend. It explores how we have failed to leverage it, what that failure has already cost us, and what must change to make India’s growth story inclusive, sustainable, and just.
The gender dividend in India: Definition and a discrepancy
India’s demographic dividend has been at the heart of its growth agenda. With over two-thirds of the population in the working-age group (15–64), the country should be an engine of productivity. But the numbers unravel quickly when gender is factored in.
According to the India Employment Report 2024, India’s overall Labour Force Participation Rate (LFPR) is 52%. But for women, it stands at just 37%, far below the global average of 50% and China’s 70%. In fact, India ranks among the 13 lowest globally for female LFPR.
It is not just a social issue; it is an economic crisis. According to a McKinsey report from 2018, India could add $770 billion to its GDP by 2025 simply by advancing gender equality in the workforce. That year is here, and we are still chasing those billions.
Education gains, employment losses
The contradiction is stark: more girls in India are now enrolled in secondary and higher education than ever before. Yet, the transition from education to employment remains deeply flawed. A 2024 CMIE study reveals that 33% of India’s 3 million annual graduates are unemployed or underemployed. Many of them are women.
The reasons are layered. Cultural expectations, lack of workplace safety, and the disproportionate burden of unpaid care work create a “leaky pipeline” where educated women simply do not make it to the workforce. Those who do often struggle to stay due to poor support systems and rigid employment structures.
Unpaid care work: The invisible barrier
Indian women spend up to 10 times more time on unpaid caregiving compared to men, one of the highest ratios globally. From childcare to eldercare, household chores to emotional labour, this unpaid work keeps millions of women out of paid employment.
The Indian government finally acknowledged this in the Economic Survey 2023–24. But recognition alone is not enough. What India needs is a public care infrastructure. This infrastructure should be government-subsidised childcare, eldercare, flexible work arrangements, and stronger workplace policies that allow women to pursue economic freedom without guilt or burnout.
Safety still an unkept promise
Even among urban women, safety remains one of the biggest barriers to employment. Public spaces and transport systems continue to be perceived as unsafe. And inside office walls, workplace harassment is rampant. Between 2020 and 2024, the top 10 private companies in India reported a 79% rise in sexual harassment cases.
Laws like POSH (Prevention of Sexual Harassment) exist on paper. But their inconsistent implementation, lack of awareness, and cultural silencing of victims mean that many women remain trapped in unsafe environments or choose to leave the workforce altogether.
Informal work and the manufacturing miss
Over 90% of India’s workforce is engaged in informal work, with no formal contracts, job security, or social security. A majority of women in the workforce fall into this category, especially in agriculture, domestic work, or small-scale retail.
India’s manufacturing sector, which could absorb unskilled and semi-skilled labour and boost female participation, contributes just 14% to GDP, compared to 27% in China. As India aspires to become a $30 trillion economy by 2047, it must ask: Who is building this future, and who is being left out of it?
Gender dividend in India: Technology and the next threat
The gig economy and AI are reshaping work globally, but without safeguards, they risk further marginalising women. Gig platforms often lack maternity protection, safety protocols, or wage transparency. Meanwhile, automation is likely to hit low-skilled, repetitive jobs, many of which are performed by women.
This shift calls for future-ready skilling, vocational training, and gender-sensitive digital inclusion. Only 15% of India’s workforce has formal vocational training. In contrast, countries like South Korea boast figures above 70%.
The future hinges on the gender dividend in India
India’s economic future is not just about numbers. It is about people. And it is dangerously incomplete without women. We cannot celebrate rising GDPs or glowing demographic charts if half our population remains underrepresented and undervalued.
The gender dividend in India is not a charity; it is an opportunity. But it requires urgent investment in safety, care infrastructure, skilling, and workplace reform. Every delay is a cost. Every woman left behind is a growth story denied. The world is watching India’s rise, but if that rise leaves women out, it is not progress. It is exclusion dressed up as ambition.
At Changeincontent, we believe economic empowerment must begin with equity. Read our analysis on the DEI Landscape in India to see what still needs fixing.
Disclaimer: The views expressed in this article are based on the writer’s insights, supported by data and resources available both online and offline, as applicable. Changeincontent.com is committed to promoting inclusivity across all forms of content. We broadly define inclusivity as media, policies, law, and history, encompassing all elements that influence the lives of women and marginalised individuals. Our goal is to promote understanding and advocate for comprehensive inclusivity.
