India needs 145 million more women workers to reach $30 trillion target: report

A recent report by the Magic Bus India Foundation and Bain & Company notes the urgent need to bring 145 million more women into India’s workforce by 2047 to achieve a $30 trillion economy.

Currently, India’s Women’s Labor Force Participation Rate (FLFPR) is at a low level of 35-40%, which is negligible without targeted intervention. this figure is projected to rise to only 45% by 2047.

The report calls for coordinated action to raise this figure to 70%, an ambitious target needed for inclusive growth.

HOW CAN WE INCREASE THE FEMALE WORKFORCE?

The report, titled From Aspiration to Action: Building India’s 400 Million Women Workforce, outlines two key concepts to promote female workforce inclusion:

1. Model E4 (Entrepreneurship Promotion): This model, targeting rural women, focuses on promoting entrepreneurship with environmental sustainability. It includes mentoring, job training, market access and financial assistance, creating local entrepreneurial opportunities that rural women can access.

2. PROGRESS Model (Job Creation): The PROGRESS model, specifically designed for urban women, promotes their employment readiness, growth and resilience. It addresses urban challenges by providing job training, child care support and flexible work arrangements, aiming to close gaps in skills mismatches and underemployment.

By addressing these specific challenges, the report estimates that India could realize up to $14 trillion in economic benefits from increasing women’s labor force participation.

SOLVING REGIONAL AND SEGMENTAL PROBLEMS

The report also highlights that rural women, who are projected to make up 70% of the labor shortage by 2047.face certain challenges such as limited availability of jobs and precarious employment.

Meanwhile, urban women face pay inequality and lack of work flexibility.

To address these differences, the report focuses on four main segments: aspiring housewives, high-potential youth, home-based and nano-entrepreneurs, and casual labor (including casual workers).

According to Magic Bus CEO Jayant Rastogi, “Increasing women’s participation in the workforce is both an economic imperative and a step towards gender equality.”

The report concludes with a call for joint action from government, the private and nonprofit sectors.

By creating sustainable and affordable jobs for women, India can transition to a model of inclusive growth, significantly accelerating the country’s economic trajectory and helping it achieve its ambitious $30 trillion target.

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