India is witnessing a historic moment where the convergence of market, social, and political forces could redefine the nation’s economic future. A recent report by the World Economic Forum predicts that, at the current rate of progress, gender parity will take 134 years to achieve — an alarming timeline that highlights the urgency of reimagining our approach to gender equity. While India has made commendable progress in closing the gender gap, it remains insufficient. With only 64.1% of its gender gap closed in 2024, the country ranks 129th globally, highlighting the need for transformative policies.
India’s past success stories, such as the Pradhan Mantri Jan Dhan Yojana (PMJDY), demonstrate that coordinated efforts across various sectors can yield substantial results. PMJDY, which revolutionised financial inclusion, exemplifies the Trifecta Effect — a synergistic alignment of market dynamics, social initiatives, and political will. To fully tap into the potential of the female workforce and achieve meaningful gender parity, India must apply this approach to the care economy.
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The trifecta effect: Market, social, and political forces
The care economy—which includes childcare, elder care, and healthcare services—is an often overlooked yet critical sector that holds transformative potential for India’s economy. According to the International Monetary Fund, achieving gender parity could boost India’s GDP by an astonishing 27%. By strategically investing just 2% of GDP in the care economy, India could create 11 million new jobs, significantly increasing female workforce participation. This investment would not only address pressing social needs but also unleash economic growth. More women in the workforce would lead to greater financial independence, reduced gender disparities, and a more inclusive, sustainable economic model. The impact would be profound, empowering women, strengthening families, and fostering a more equitable society.
However, the Trifecta Effect is not without its challenges. Aligning market, social, and political forces is difficult, as each operates under different priorities. Market forces, driven by profit motives, often prioritise short-term gains over long-term societal benefits, leading to hesitancy in investing in gender diversity and inclusion. Social forces, while influential in shaping public opinion, are often hindered by deep-seated cultural norms that resist change. Political forces, despite their capacity to enact gender parity policies, frequently face pushback from vested interests and lack sustained commitment. Misalignments across these forces result in token corporate initiatives, social movements that struggle to gain traction, and political will that falters in the face of opposition.
Investing in care economy
India’s low Female Labour Force Participation Rate (LFPR), especially in urban areas where it stands at just 25.6%, reflects a broader systemic issue. Women are disproportionately burdened with unpaid labour, including household chores and caregiving responsibilities, which limits their economic participation. According to the International Labour Organisation, women in India spend nearly six hours per day on unpaid labour, compared to just one hour for men.
A critical policy area is eldercare. As India’s population ages, the demand for eldercare is rising, placing additional pressure on women, who are often the primary caregivers. Government initiatives to provide subsidised eldercare services, along with incentives for private sector investment in this area, would alleviate the caregiving burden on women and open up new employment opportunities within the care economy.
According to a McKinsey Global Institute report, closing the gender gap in labour force participation could add $770 billion to India’s GDP by 2025. However, this goal cannot be achieved without addressing the root causes of women’s disproportionate caregiving responsibilities. To unlock the full potential of the care economy, India must prioritise policies that reduce these unpaid burdens and equip women with the necessary skills and opportunities to participate in the workforce. Subsidised childcare services, eldercare facilities, and healthcare support are among the policies that would directly contribute to job creation and economic growth.
Corporate India’s gender imbalance
The underrepresentation of women in corporate leadership is another critical area requiring attention. While there has been a modest increase in women holding leadership positions over the last five years, the numbers remain disproportionately low. Only 56% of organisations report that 10-30% of their leadership positions are occupied by women, and less than 30% of women hired at entry levels make it to leadership roles, compared to their male counterparts. Diversity in top CXO positions is even more dismal, with only 51% of organisations achieving any significant improvement.
Despite the optics, the harsh reality of social and cultural glass ceilings remains unyielding. Corporate India’s often performative embrace of gender equality and empowerment, symbolised by pervasive “hashtagism,” fails to address the deep-rooted barriers women face. This facade masks the systemic exclusion of women from leadership roles and meaningful workforce participation, perpetuating an environment where true gender parity remains elusive.
The increase in female board members has largely been driven by government mandates, not organic growth, underscoring the need for policy interventions. Without targeted policies to promote gender diversity, relying on market forces alone will not close the gap. Barriers to female workforce participation—including childcare, personal commitments, societal norms, and inadequate infrastructure—must be systematically dismantled to create a more inclusive corporate environment.
PMJDY’s lessons for future
PMJDY’s success in financial inclusion offers a valuable blueprint for addressing gender disparity in the workforce. Its strength lay in a comprehensive approach that combined financial interventions with non-monetary support. Similarly, a multifaceted strategy is needed to elevate the care economy, combining direct investments with policies that facilitate women’s entry into the workforce.
For instance, government-backed initiatives could focus on skill development and training for women in care-related sectors, ensuring they are equipped for leadership roles. Additionally, incentivising private sector investment in the care economy could drive innovation and efficiency, promoting job creation and economic growth.
Gender parity: Social and political dimensions
The benefits of investing in the care economy extend beyond economic gains. Empowering women to participate fully in the workforce would help address deep-rooted social inequalities. Enhanced female workforce participation could lead to greater representation of women in leadership roles, both in corporate and political spheres.
Furthermore, these policies would have generational effects. As women gain financial independence and social standing, they are more likely to invest in their children’s education and well-being, creating a virtuous cycle of growth and development. This would also help close the gender gap in education, where India currently ranks 124th due to a significant literacy gap between men and women.
To truly reimagine Nari Shakti policies, India must commit to a holistic, long-term strategy that leverages the Trifecta Effect. Aligning market incentives with social goals and political will is essential to creating an environment where women can thrive. The care economy, with its vast potential for job creation and social impact, should be central to this strategy.
Investing 2% of GDP in the care economy is not just an economic necessity; it is a national developmental investment. By doing so, India can create millions of jobs, boost its GDP, and take a significant step toward achieving gender parity. The time for action is now—India cannot afford to wait another generation to achieve equality. With the right policies and investments, we can accelerate the pace of change and build a more inclusive, prosperous future for all.
Dakshita Das is a Policy expert, and former civil servant. Dr Srinath Sridharan is a policy researcher and corporate advisor.
Srinath Sridharan is a strategic counsel with 25 years experience with leading corporates across diverse sectors including automobiles, e-commerce, advertising and financial services. He understands and ideates on intersection of finance, digital, contextual-finance, consumer, mobility, Urban transformation, and ESG. Actively engaged across growth policy conversations and public policy issues.