According to its latest South Asia Development Update, the World Bank stated that India’s manufacturing output would increase by 9% if the participation of women workers was increased. The report, published yesterday by the EIU, reiterated that India’s GDP growth projections for fiscal year 2025 and fiscal year 2026 would be 7% and 6.7%, respectively. Regional growth for South Asia in the year 2014 is 6.4%. Growth will be strong because of domestic demand in India while Sri Lanka’s economy recovers, and so does Pakistan.
The Washington-based institution underlined that positive agricultural sector output growth, combined with labour-friendly policies, would positively affect private consumption. Public consumption growth will also soften as the country looks to reduce its fiscal deficit.
The report reveals a huge disparity regarding the workforce participation level of four South Asian countries. In these countries, the employment rate of women after marriage is, on average, 12 percentage points lower than before marriage. Other countries included in the survey are the Maldives, Nepal, and Bangladesh.
According to Martin Raiser, World Bank Vice-President for South Asia, enabling women to participate in the labor market involves key policy reforms that may drastically boost economic growth. “Our research reveals that empowering women in the labour force contribution levels closer to male levels can be an influential factor to enhance regional GDP by up to 51 per cent,” he said.
The female labor force participation rate of India has also improved significantly, standing at 41.7% in FY24 compared with 23.3% in FY18, as per the latest Periodic Labour Force Survey report. Further, it indicated manufacturing would experience the highest output gains when the gender gap is eliminated, and for services.
Despite the positive trends indicated, there is concern in South Asia regarding the fact that it has one of the lowest female labor force participation rates in the world, with only 32 percent of working-age women active in the labor force, as opposed to 77 percent of men. Barriers such as unsafe transportation, inadequate childcare, and restrictions on mobility continue to limit women’s economic opportunities.
The World Bank states that to overcome these challenges, it is essential for all three entities, the private sector, and the communities themselves—to increase women’s employment opportunities and, thereby, their economic empowerment.
