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LATEST NEWS UPDATES | India's female employment set to rise but may not be transformational

India's female employment set to rise but may not be transformational

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published Published on Aug 16, 2022   modified Modified on Aug 17, 2022

-Moneycontrol.com

India’s low level of female participation is due to two major structural factors: more young women staying in education and a historic failure to implement labour market reforms and develop a strong manufacturing base.

India’s female employment is set to rise over the coming years but may not be transformational, Capital Economics said in a note, after Prime Minister Narendra Modi focussed on women’s power in his Independence Day address.

“We agree with PM Modi’s assertion in his Independence Day speech over the weekend that boosting female participation in the labour force could have a major positive impact on the economy, but in truth the government’s record in this area is poor,” Shilan Shah, Senior India Economist said.

Increasing the female labour force participation rates is one way to boost the supply of labour and therefore potential gross domestic product. Female labour force participation refers to the share of the female working-age population that is employed or seeking employment.

Female participation is extremely low at just 21% in 2019 and it dropped further to 19% in 2020. The rate had risen to around 32% in 2005, Shah said.

India’s low level of female participation is due to two major structural factors: more young women staying in education and a historic failure to implement labour market reforms and develop a strong manufacturing base, the economist added.

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Moneycontrol.com, 16 August, 2022, https://www.moneycontrol.com/news/business/economy/indias-female-employment-set-to-rise-but-may-not-be-transformational-9035211.html


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