India's ambitious economic growth hinges significantly on increasing the participation of women in the workforce, according to the Economic Survey 2025-26. The survey emphasizes that India's vision for "Viksit Bharat 2047" places women at the core of the national development agenda, envisioning progress to be women-led. Raising the female labor force participation rate (FLFPR) to around 55% by the 2050s is critical for sustaining a high annual GDP growth trajectory.
The Economic Survey 2025-26, presented to Parliament on Thursday, highlights that the female labor force participation in India has increased from 23.3% in 2017-18 to 41.7% in 2023-24. This increase is attributed to enhanced participation of women in economic activities across various categories, including rural and urban areas. Notably, rural females have shown a remarkable increase in labor force participation, with the LFPR almost doubling from 24.6% in 2017-18 to 47.6% in 2023-24. In comparison, the LFPR for urban females rose from 20.4% in 2017-18 to 28% in 2023-24, remaining lower than that of rural females.
Despite these improvements, the survey points out that women continue to face structural barriers that limit their economic participation. These include limited mobility, lack of affordable housing, and inflexible work arrangements that often clash with caregiving responsibilities. Women also shoulder a disproportionate share of unpaid work. In 2024, approximately 41% of women aged 15–59 years were engaged in caregiving activities for household members, compared to only 21.4% of men. Women spend nearly 140 minutes a day on caregiving, almost double the 74 minutes spent by men. On average, women spend 363 minutes daily on unpaid activities, while men spend about 123 minutes.
To address these challenges, the Economic Survey 2025-26 suggests policies that promote shared domestic responsibilities and better care infrastructure. These include affordable childcare and elder-care support, which are crucial for improving the FLFPR. It also advocates for enabling labor regulations to support business growth, create employment, and promote economic development.
The Economic Survey highlights the potential for the digital economy and renewable energy sectors to provide enhanced job creation opportunities. It also recognizes the importance of financial support, training, and mentorship for promoting women entrepreneurship. While women are increasingly participating in the workforce, their ownership in MSMEs remains low, with only 22% of MSMEs being women-owned.
The Economic Survey 2025-26 underlines that increasing women's participation in the labor force is not only a social objective but also a macroeconomic imperative for India's sustained growth and stability. By addressing the structural barriers and promoting gender-inclusive policies, India can unlock the full economic potential of its female population and achieve its vision of "Viksit Bharat 2047". The government is focused on establishing a resilient and responsive skilled ecosystem. Furthermore, ongoing efforts are translating commitments into actionable changes, guided by the vision of women-led development articulated during India's 2023 G20 presidency. Estimates suggest that increasing women's participation to around 55% by 2050 could be critical for maintaining a high annual GDP growth trajectory.
