The World Bank, in its latest South Asia Development Update, said if more women were to access manufacturing jobs, output would rise by 9 per cent in India. The World Bank has maintained a Gross Domestic Product (GDP) growth projection of 7 per cent in FY 2024-25 and 6.7 per cent in FY 2025-26 for the country.
“Larger-than-expected agricultural output, along with policies designed to raise employment growth, are expected to contribute to strong private consumption growth, while growth in public consumption is projected to moderate in line with budgeted fiscal consolidation,” the report said.
Citing its findings on female labour force participation in the region, the report noted that on average, in four South Asian countries including India, the share of women employed after marriage is 12 percentage points lower than the share employed before marriage. The other three countries include Maldives, Nepal, and Bangladesh.
Martin Raiser, World Bank vice president for South Asia, said, “Key policy reforms to integrate more women into the workforce and remove barriers to global investment and trade can accelerate growth. Our research shows that raising female labour force participation rates in the region to those of men would increase regional GDP by up to 51 per cent.”
The report said that in all South Asian countries, output gains from closing the gender gap in labour force participation would be driven by the manufacturing sector, followed by the services sector.
The World Bank said that female labour force participation in South Asia is among the lowest in the world. Only 32 per cent of working-age women were in the labour force in 2023, compared to 77 per cent of working-age men in the region.
“For all South Asian countries except Bhutan, female labour force participation rates in 2023 were 5 to 25 percentage points lower than in countries at similar levels of development.”
The report said that many barriers constrain women in the region, including unsafe transport, lack of childcare, and limited freedom of movement, which hinder women’s social and economic mobility and confine many to informal-sector roles with poor remuneration.
Helped by strong domestic demand, the report said that growth was on track to be higher than anticipated six months ago. “Global investors are seeking locations with low geopolitical risks and strong economic fundamentals, and the region, especially India, is well-placed to benefit,” the report said.
“South Asia’s female labour force participation rate of 32 per cent is well below the 54 per cent average in emerging market and developing economies,” said Franziska Ohnsorge, World Bank chief economist for South Asia.
She said that increasing women’s employment requires action from all stakeholders. “Our report recommends a multi-pronged effort where governments, the private sector, communities, and households all have a role to play.”
First Published: Oct 10 2024 | 6:06 PM IST
