Economic Survey 2025 reveals female labour force participation rate rose 18.4% in 5 years

India has witnessed a significant rise in self-employment in recent years, with more individuals embracing entrepreneurial pursuits and flexible work options. According to the Economic Survey 2025, the share of self-employed workers increased from 52.2% in 2017-18 to 58.4% in 2023-24. However, a notable gender disparity remains, as self-employed women earn only a third of what men make, highlighting concerns over income inequality and economic fairness.

Despite a substantial rise in the number of women entering self-employment, their earnings continue to lag behind. The report also notes a growing trend of women in rural India engaging in independent work, with the proportion of “own account workers/employers” rising from 19% in 2017-18 to 31.2% in 2023-24.

At the same time, the share of women engaged as "helpers in household enterprises" increased from 38.7% to 42.3%, indicating a shift toward family-based economic activities. In urban areas, the proportion of female "own account workers/employers" also rose from 23.7% to 28.5%, accompanied by a similar rise in unpaid family labor.

This rise in self-employment among women is linked to various factors, including a decline in regular salaried jobs. The share of rural women in formal employment fell from 10.5% in 2017-18 to 7.8% in 2023-24, while in urban areas, it declined from 52.1% to 49.4%.

The COVID-19 pandemic intensified this trend, compelling many women to quit salaried jobs as they took on caregiving responsibilities for children and elderly family members amid school closures.

“The pandemic underscored the need for flexibility in work, and many women turned to self-employment as a viable alternative,” as per the report.

What led the rise in woman participation?

Although government programs like Mudra Yojana, Skill India, and Start-Up India are designed to promote entrepreneurship, the income disparity persists. Experts highlight that women's predominance in low-wage sectors, along with restricted access to capital and business resources, hinders their financial advancement.

“Women’s economic contribution is undeniable, yet their earning potential is severely restricted due to systemic barriers,” the report stated.

Sector-wise data highlights this disparity. The proportion of women employed in agriculture increased from 57% in 2017-18 to 64.4% in 2023-24, while male participation in the sector declined. In rural areas, female employment in agriculture grew from 73.2% to 76.9%, whereas male involvement fell from 55% to 49.4%. Meanwhile, more men have shifted to better-paying industries like construction, trade, and transport.