A holistic approach to India’s care economy: The female labour force participation rate ROSE from 23.3% in 2017-18 to 37% in 2022-23, according to the Economic Survey 2023-24. However, a large share of the female labour force consists of informal workers, many of whom opt out of formal employment due to the heavy burden of unpaid care work and domestic responsibilities. The Annual PLFS Report (2021-22) revealed that around 45% of women cited childcare and homemaking commitments as reasons for not participating in the job market.
The Union Budget for 2024-25, presented by finance minister Nirmala Sitharaman, introduced several measures to support working women, including the establishment of working women’s hostels in collaboration with industry and the creation of creches. These policies should have addressed both the paid and unpaid care sectors, as women often enter the labour market for varying periods in the former case, but remain excluded for prolonged periods in the latter.
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Need to focus on care economy
India spends less than 1% of its GDP on its care economy and the overall development of care-supporting infrastructure — far lower than other nations (Joint Report by MWCD, GoI, and Bill and Melinda Gates Foundation, 2024). The lack of a clear policy for the care economy, particularly for unpaid care work, has hindered progress in areas like universal childcare, dignified employment for caregivers, pro-family policies, and economic empowerment for women. There is a pressing need to promote a care-enabling policy environment by adequately investing in the unpaid care sector and addressing key policy gaps.
Fiscal support is offered through two sets of policies in India: (i) those that directly provide care services, and (ii) those aimed at strengthening care-supporting infrastructure, which largely seek to reduce the burden of unpaid domestic labour (Figure 2).
Within the unpaid care sector, women’s time is primarily spent providing care to three categories of family members — young children (pre-school age), the elderly or special-needs individuals, and non-dependent members of any age. Childcare services not only support holistic child development but also reduce the burden of unpaid care work on parents, especially mothers, thereby promoting women’s employment and income over their lifetime. Key policy interventions for children of all ages include Saksham Anganwadi and Poshan 2.0 (formerly the Integrated Child Development Services, ICDS), PM-POSHAN (formerly the Mid-Day Meal Scheme), and Samagra Shiksha Abhiyan (SmSA).
Providing affordable, safe, and high-quality care for the elderly and people with special needs is essential for improving their physical and mental well-being and ensuring they live dignified lives. It also helps alleviate the caregiving burden on families, particularly women, by redistributing these responsibilities across extended families, communities, and government. The National Social Assistance Programme (NSAP) is the primary umbrella program for the well-being of the elderly and family members with special needs.
Care-supporting physical infrastructure includes systems that reduce the time and labour of household tasks, especially in low-income rural areas where fetching water and fuelwood is common. It also includes access to affordable and reliable public transportation, which reduces the time needed to access essential services like healthcare, schools, and banks. Additionally, it includes technology and equipment that reduce the time and intensity of domestic tasks such as cooking, cleaning, and laundry.
Healthcare services, especially maternal and reproductive healthcare, are vital for the well-being of both caregivers and care recipients, increasing the productive capacity of both groups. An effective public healthcare system should be an integral part of a holistic care economy policy. The availability of public infrastructure helps free up women’s time for education, paid work, civic participation, leisure, and social activities.
Key interventions in care-supporting infrastructure include: (i) piped water and sanitation facilities (Jal Jeevan Mission, JJM, and Swachh Bharat Mission, SBM), (ii) electricity and energy-saving devices (PM Surya Ghar Muft Bijli Yojana and Pradhan Mantri Ujjwala Yojana, PMUY), (iii) improved public transport and connectivity (Pradhan Mantri Gram Sadak Yojana, PMGSY), and (iv) public healthcare services (National Health Mission, NHM, and Pradhan Mantri Jan Aarogya Yojana, PMJAY).
Fiscal support for care-providing schemes
Saksham Anganwadi and Poshan 2.0, which account for around 80% of the Ministry of Women and Child Development’s budget, have seen consistent increases in allocations in recent years. These community-based programs are among the world’s largest and are crucial for early childhood development. They not only empower women to meet their own health, nutrition, and development needs but also help older female siblings stay in school. However, there are concerns about the inadequate compensation provided to ASHA workers under these schemes.
Allocations to PM POSHAN, the world’s largest school lunch program, have fluctuated due to high underutilisation during the COVID-19 years. Although the program aims to provide nutritious meals to school children, concerns about food quality in recent years have undermined its objectives. Early Childhood Care and Education (ECCE) is part of the SmSA program, but only 24% of government schools have pre-primary sections, and just 0.36 crore out of 1.36 crore children are enrolled in government schools (UDISE 2016-17). Formal ECCE should be prioritised to ensure equity and inclusivity.
The NSAP remains the only comprehensive program providing income security to vulnerable groups, such as the elderly, widows, and persons with disabilities. However, limited funding has consistently hindered the scheme’s effectiveness in promoting their well-being and ensuring they lead dignified lives.
Support for care-supporting infrastructure
The Har Ghar Jal Report (2023) by WHO highlights that 13.97 crore households now have access to in-premise tap water, thanks to the JJM. Previously, women in India spent an average of 45.5 minutes per day fetching water. While significant investments have been made to provide piped water, challenges remain in ensuring continuous access, availability, and safety. Similarly, SBM has been instrumental in transforming India’s sanitation landscape, but 442,574 villages still need to meet ODF Plus status, indicating the need for further financial investment.
The Saubhagya Scheme achieved 100% electrification of rural households, but it was discontinued in 2022. In its place, the PM Surya Ghar Muft Bijli Yojana was announced in the Union Budget (2024-25) to provide renewable energy-powered electricity to low-income households. The PMUY has provided over 10 crore LPG connections to BPL families, but limited funding has been allocated recently due to substantial coverage of key beneficiaries.
Public transport and connectivity in rural areas have long been areas of concern. The PMGSY has been one of the most successful rural development programs, sanctioning over 8.29 lakh kilometres of road since its inception, with 7.63 lakh kilometres completed at a cost of Rs. 3.23 lakh crore. However, there was no increase in allocation for PMGSY in the 2024-25 Budget.
While both NHM and PMJAY have seen increased allocations, challenges remain in effectively utilising these funds to cover intended beneficiaries, invest in human resources, and expand state-of-the-art healthcare facilities, particularly in rural areas. The government schemes related to unpaid care work have the potential to free up women’s time and empower them to engage in economically productive activities such as education and employment.
Although targets have been achieved in recent years, a lack of holistic understanding of the concept of care has hindered the implementation of these schemes. To foster a ‘care-enabling policy environment’ in India, it is crucial to ensure inter-departmental convergence and coordination, with a focus on both care-providing and care-supporting infrastructure policies.
(Dr Mitali Gupta is an independent researcher working on various socio-economic development issues. Ujala Kumari is an independent researcher working in the areas of health economics and public finance.)