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If you had to bet on a single factor that could add an extra percentage point to India’s economic growth over the next decade, what would it be? Infrastructure? Artificial intelligence?…
Archive edition · Market data and company circumstances reflect 14 June 2025, when this newsletter was sent.
If you had to bet on a single factor that could add an extra percentage point to India’s economic growth over the next decade, what would it be? Infrastructure? Artificial intelligence? Manufacturing exports?
What if the answer is right in front of us — in India’s untapped women workforce. A new proprietary research brings timely focus to India’s female labor force participation story — a theme that's often underappreciated, yet holds immense economic promise.
The female LFPR in India remains lower than major economies.
India stands at a demographic sweet spot. Over the next two decades, the country will enjoy one of the lowest age-dependency ratios among major economies. In other words, fewer dependents for every working adult — a dream scenario for GDP growth.
By 2030, India’s working-age population is set to surge while other major economies grapple with aging societies. But here’s the catch — India’s female labor force participation rate (LFPR) is dramatically low, sitting at ~42% for 2023-24 per official Indian data, and ~31% per International Labour Organization (ILO) estimates. This is well below the ~79% male participation rate, and significantly behind other emerging and developed nations.
If India can boost overall labor participation back to its prior peak levels — driven largely by including more women — it could add 1 percentage point to potential GDP growth. That’s a big number in macroeconomic terms.
Women in India spend ~8x more time on domestic and care-giving services than men.
Here’s a list of several intertwined barriers:
Despite these hurdles, there’s evidence of movement in the right direction:
As more women enter the workforce, disposable incomes rise. Consumption baskets diversify — with higher spends on personal care, education, mobile connectivity, two-wheelers, and personal finance products.
India’s IT sector employs 34% women — highest across sectors. Remote work and gig economy platforms will further open flexible employment channels.
Another encouraging trend is the growing footprint of women in India’s thriving start-up ecosystem. As of 2024:
This matters because data shows women hire more women. Empowering female entrepreneurs has a multiplier effect on women’s employment.
76% of women lack vocational training. Government push and digital delivery models present a scalable market.
Goldman Sachs projects a 2% of GDP investment in the care economy could create 11 million jobs — majority for women.
Women representation in corporates gradually reduces from junior roles to executive roles.
Women remain underrepresented across corporate India:
The IT sector leads, with 34% women employees, thanks to India producing 43% STEM graduates as women — one of the highest globally. However, only 11% of IT executives are women, indicating a steep drop at higher levels.
Disclosure around gender diversity is improving — now, 95% of MSCI India companies report gender representation data. Yet reporting on metrics like the gender pay gap and new women hires remains weak.
India’s demographic advantage won’t last forever. The next 20 years are a make-or-break window. Goldman Sachs outlines four critical areas for policy and business focus:
India Womenomics is no longer a ‘nice-to-have’ social target — it’s a statistically proven, GDP-enhancing, consumer behavior-shaping investment theme.
Investors with a 5–10 year horizon should:
If India’s female LFPR rises to just 50%, it could add USD 700–900 billion to GDP by 2035.
It’s an investment story too large to ignore.
This article preserves the analysis in our weekly newsletter sent 14 June 2025. Market prices, forecasts and company circumstances reflect the time of publication and may have changed.
This material is general information, not personal financial advice or a recommendation to trade. Investing and trading involve risk, including loss of capital.