Plug gender gap in labour to boost GDP

According to UNESCAP (2007), a 10% permanent increase in female labour force participation would lead to a 0.3% rise in the GDP growth rate. Research from the International Monetary Fund suggests that bringing the female employment rate on par with the rate for males could boost India’s GDP by 27%. Increasing women’s participation in the workforce also leads to broader social benefits, such as improved family health and education outcomes, and reduced poverty levels. This makes a strong case for targeted policies and investments.

Between 2017 to 2023, the Periodic Labour Force Survey data shows that the labour force participation rate (LFPR) increased by five percentage points for urban women. National flagship missions have contributed to a large extent to improving the female LFPR in urban India. Take, for instance, Deendayal Antyodaya Yojana — National Urban Livelihoods Mission (DAY-NULM), the flagship mission of the ministry of housing and urban affairs. DAY-NULM seeks to alleviate poverty and vulnerability among urban households by creating pathways to gainful self-employment and skilled wage opportunities, fostering sustainable livelihoods, and empowering individuals to break free from the cycle of poverty. The mission offers targeted training and credit facilities for women entrepreneurs and self-help groups. As of September 2024, the mission has successfully reached out to over a crore beneficiaries, including over 90 lakh women through 9.8 self-help groups (SHGs) in urban areas. By providing these women with access to credit, a crucial tool for economic empowerment, DAY-NULM is fostering a sense of agency and enabling them to build a better future. During 2014-2022, 4.56 lakh of 6.78 lakh SHGs in urban India, received revolving funds, under different components of DAY-NULM. Over the period, about 11.57 lakh SHG candidates received training in different skills, of which 6.20 lakh got placements. By 2024, 6.72 lakh of 9.85 lakh SHGs in urban India had received revolving funds, primarily accessed by women. Additionally, the mission facilitated skill training for about 15.42 lakh individuals, 10.09 lakh of them being women — 8.72 lakh trained candidates secured placements, of whom 6.07 lakh were women.

Women’s SHGs have gained access to education, health care, and other essential services, not just for themselves but also for their families, leading to improved well-being and greater participation in community life. As of September 2024, 2.45 lakh women beneficiaries were linked to POSHAN; 11.76 lakh SHG members and their families attended health camps across urban areas of the country. Crucially, the formation and strengthening of these SHGs have been instrumental in building social capital among women. These groups provided a safe and supportive space for interaction, fostering trust, solidarity, and mutual support. This enhanced social capital has not only boosted confidence and decision-making but also fostered a sense of collective agency, enabling women to challenge traditional gender norms, increase their mobility, and engage in activities and work traditionally reserved for men.

In many cities, women SHGs have taken on the operation and maintenance of water and sanitation facilities, becoming entrepreneurs, owning assets, and running sanitation businesses. This shatters gender stereotypes and demonstrates the power of economic empowerment to transform lives. The convergence of NULM with the Swachh Bharat Mission and Atal Mission for Rejuvenation and Urban Transformation exemplifies the commitment to women’s empowerment.

Women’s SHGs in urban areas have become crucial conduits of information and connect marginalised communities with government programmes related to health care, education, pensions, and other social benefits. Their deep-rooted presence within communities and understanding of local needs enable them to effectively disseminate information and facilitate access to these vital services.

During the Covid-19 pandemic, women SHGs provided community support and helped to bridge the gap between vulnerable populations and government relief efforts. Given India’s current demographic trends, DAY-NULM assumes great importance in harnessing the demographic dividend, especially among poor households. It is important to increase its coverage across all towns and cities.

Debolina Kundu is director (additional charge), National Institute of Urban Affairs and Anju Dwivedi is the team leader, National Mission Management Unit, DAY-NULM at the Union ministry of housing and urban affairs.The views expressed are personal

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