Economic Survey 2025-26 urges policy action to raise women's labour participation

While women's participation in paid work is rising slowly, “the imbalance underscores the need for policies that promote shared domestic responsibilities and better care infrastructure”, noted the Economic Survey 2025-2026, presented in Parliament on Thursday.

Women employees face hurdles such as limited mobility and a lack of affordable housing, which often clash with their caregiving responsibilities, relegating them to what are seen as “low-productivity jobs”, pointed out the annual survey, presented ahead of the Union budget.

It highlighted that India's female labour force participation increased from 23.3% in 2017-18 to 41.7% in 2023-24. “Despite these improvements in economic participation, women workers continue to face structural barriers, including limited mobility, lack of affordable housing, and inflexible work arrangements that conflict with caregiving responsibilities, underscoring the need for a multipronged policy approach to further enhance participation."

The survey showed that women accounted for 21.3% of regular wage or salaried jobs, compared with 27.2% for men, in the September quarter of 2025-26.

During and immediately after the covid-19 outbreak, the sharp drop in women’s participation in the workforce had worried Indian companies. Since then, businesses across sectors have made additional efforts—including flexible working hours and work-from-home policies—to bring more women into the workforce.

Women must enter STEM fields

The survey highlighted the need to increase inclusivity, noting that one way to do so is by encouraging more women to enter male-dominated science, technology, engineering and mathematics (STEM) fields, even as women continue to navigate caregiving responsibilities, early marriage and the rising cost of higher education.

The Periodic Labour Force Survey (PLFS) for 2023-24 showed that women aged 25 and above with advanced degrees accounted for just 2.9% of the employed female workforce across rural and urban areas.

“Many highly educated women continue to work in low-productivity jobs or part-time roles due to social expectations, mobility constraints, and limited access to flexible formal employment,” the survey noted.

It also brought out the challenges women face in commuting to work. The use of public transportation by women in the country differs significantly from that of men. Women often travel during off-peak hours, accompanied by children, and make multiple short trips to handle household chores or perform caregiving activities.

The survey chalks out a need for a policy that will focus on extending safety infrastructure and providing affordable intermediate transport to cover women's entire travel chain, “from doorstep to destination”. Manufacturing and industrial hubs can create “women-centric industrial clusters”.

To be sure, India’s vision for Viksit Bharat 2047 places women at the core of the national development agenda, with progress envisioned to be women-led. Estimates suggest that increasing participation to around 55% by 2050 could be critical for maintaining a high annual gross domestic product (GDP) growth trajectory.