Demand-side constraints become a more important barrier to women's employment in India | Current Affairs | Vision IAS

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In Summary

  • EAC-PM identifies weak labour demand, not social norms, as the primary barrier to women's labour force participation in India.
  • Female LFPR was 32.8% overall (36.7% rural, 24.8% urban), with factors like limited STEM workforce access and significant unpaid labour contributing to low employment.
  • Initiatives like the Industrial Relations Code 2020, extended maternity benefits, and the 'She-Box' portal aim to increase women's workforce participation.

In Summary

Prime Minister's Economic Advisory Council (EAC-PM) Chairman stated weak labour demand, rather than social norms, has become the key barrier to raising women's labour force participation in India.

  • Female Labour Force Participation Rate (LFPR) for age 15 years and above stood at 32.8% in May, 2026. 
    • In rural areas, female LFPR was recorded at 36.7%, whereas it remained almost at the same level at 24.8% in urban areas.

Factors responsible for Low Employment among Women in India

  • Limited access to STEM careers: In India women constitute 43% of STEM graduates, but only an estimated 27% participate in the STEM workforce.
  • Unpaid labour: Women spent 363 min/day on unpaid work vs. 123 min/day for men.
  • Despite women's financial inclusion, the credit-to-deposit ratio is 43% for women compared to 93% for men.
  • Wage Inequality: India's wage equality ratio stands at a low 0.5 (where 1 indicates full parity), compared to 0.8 in the Philippines.

Steps taken to increase women participation in workforce

  • Industrial Relations Code 2020 mandates adequate representation of women in the Grievance Redressal Committee.
  • Maternity Benefits: The maximum period of maternity leave is 26 weeks, of which up to 8 weeks may be taken before the expected date of delivery.
  • Safety at Workplace: Initiatives like "She-Box" encompassing various provisions of 'Sexual Harassment of Women at Workplace (Prevention, Prohibition, and Redressal) Act, 2013'.
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RELATED TERMS

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Sexual Harassment of Women at Workplace (Prevention, Prohibition, and Redressal) Act, 2013

This legislation mandates the establishment of internal complaints committees (ICC) in workplaces to address sexual harassment complaints, providing a legal framework for safety and dignity for women at work.

Maternity Benefits Act, 1961

An Act that regulates employment of maternity benefit for certain periods and provides for maternity and other benefits. The article refers to its provisions on maternity leave duration.

Industrial Relations Code 2020

One of the three new Labour Codes in India, consolidating and amending laws relating to trade unions, conditions of employment, industrial disputes, and other related matters. It includes provisions for women's representation in grievance redressal committees.

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