The World Bank has projected a significant increase in India’s manufacturing output if more women join the workforce. According to the bank’s South Asia Development Update, India’s manufacturing output could rise by 9% if women’s labor force participation rates were increased.
The World Bank maintained its GDP growth projection for India at 7% in FY25 and 6.7% in FY26. The region’s overall growth forecast for 2024 was also revised upwards to 6.4%, driven by strong domestic demand in India and quicker recoveries in Sri Lanka and Pakistan.
The report highlighted that larger-than-expected agricultural output and policies aimed at promoting employment growth would contribute to robust private consumption. Public consumption growth is expected to moderate in line with budgeted fiscal consolidation.
Regarding women’s labor force participation, the World Bank noted that in four South Asian countries, including India, the share of employed women after marriage is significantly lower than before marriage. This gender gap in employment rates represents a missed opportunity for economic growth.
Martin Raiser, World Bank Vice-President for South Asia, emphasized the importance of key policy reforms to integrate more women into the workforce and remove barriers to global investment and trade. He stated that increasing female labor force participation rates in the region could boost regional GDP by up to 51%.
India has made progress in increasing women’s labor force participation, with the rate rising to 41.7% in FY24 from 23.3% in FY18. However, there is still significant room for improvement.
The World Bank’s report highlights the potential economic benefits of empowering women and promoting gender equality in the workplace. By implementing appropriate policies and addressing societal barriers, India can further unleash the economic potential of its female population.
