The real question isn’t why women aren’t working, but why so many are kept out of the workforce despite being willing, educated, and skilled. The challenge lies primarily in the demand-side barriers that remain deeply embedded within corporate structures. Barriers largely stem from inadequate workplace policies—such as flexible work, biased hiring practices—and poor infrastructure for safe housing, mobility, and workplace design. While supply-side challenges also exist, global evidence from China and Malaysia shows that dismantling structural demand-side barriers significantly boosts women's economic participation. Tamil Nadu’s Krishnagiri district is a local example of how targeted interventions can transform gender outcomes. Once struggling with low female literacy (57%), child marriages, and a skewed sex ratio, industrial investments and schemes like Vidiyal Payanam, offering free transportation for women workers, and efforts to provide career guidance and address safety concerns resulted in a complete turnaround. As of 2022-2023, there has been an 89% rise in girls’ enrollment in higher education (2022–23) and an increase in the average age of marriage from 14 to 21 years.

Workplaces have traditionally been designed around men’s needs, limiting women’s ability to balance professional and personal responsibilities. The lack of flexibility remains a major barrier, especially for women with caregiving roles. Without options like remote or part-time work, many are excluded altogether. An Udaiti study, From Intent to Practice: Fostering Gender Inclusive Workplaces, found that while 73% of hiring managers report setting gender diversity goals, only 21% have implemented concrete strategies. This gap between intent and action highlights the need for workplaces that reflect women’s realities. NatWest, for instance, allows employees to balance working from home and the office, requiring them to be in the office a minimum of 40% of the month, and provides other flexible work options like part-time work and phased return after parental leave.

Second, unconscious bias in hiring and promotion continues to perpetuate gender disparities. While women’s workforce participation has improved, leadership representation remains low. According to a 2024 LinkedIn and The Quantum Hub report, women hold just 18.3% of senior leadership roles and 15.3% of C-suite positions, slightly down from 2023. Biases—such as gendered job descriptions and subjective evaluations—hinder progress. Solutions like unconscious bias training, neutral job postings, and Artificial Intelligence (AI)-driven hiring tools are critical. Companies like Hindustan Unilever and Sony Pictures Networks India are leading efforts, with Sony doubling referral rewards for women and rolling out bias training.

Another critical area lies in creating pathways for women to return to work after career breaks. McKinsey research shows women face significant hurdles re-entering the workforce post-maternity or caregiving, impacting career progression. Returnship programmes are key solutions. Wipro’s ‘Begin Again’ programme has achieved a 99% return rate for women after maternity leave. Amazon India's Rekindle programme has helped over 200 mid-level women executives rejoin in 2023 alone. Such initiatives are vital to normalising career breaks as natural, not penalising, phases in women's professional journeys.

Finally, companies must take a systematic approach to women’s career progression. While many focus on hiring, few have clear strategies to advance women into leadership. Despite being more employable than men, women face barriers in male-dominated industries like construction and manufacturing. Leadership development programs tailored to women’s needs—mentorship, sponsorship, and stretch assignments—are essential. Companies like Infosys and Genpact have launched Women in Leadership initiatives that offer targeted training and mentorship to accelerate mid-career growth, ensuring women are not just hired, but equipped to lead.

The economic case for unlocking India’s gender dividend is clear. By dismantling demand-side barriers, businesses can tap into the vast potential of women workers, contributing significantly to India’s GDP growth. Gender diversity is a strategic driver of economic growth. China’s steady progress in closing 68.4% of its gender gap, as per the WEF Global Gender Gap Report 2024, demonstrates the potential impact. McKinsey estimates that narrowing the gender employment gap could add up to 15% to China’s GDP by 2030, underscoring how improving women's participation and leadership can significantly boost national growth trajectories.

Solutions most likely to succeed will be those grounded in data-backed methodologies. Beyond disaggregated gender data, what India needs today is a framework that translates insights into action, enabling organisations to set measurable targets and drive real change - create an ecosystem that supports women's entry, retention, advancement, and return to work. Without this, tracking or sustaining progress will remain elusive. The writing on the wall is clear: women must be at the centre of India’s growth story. As we move toward Viksit Bharat, unlocking the gender dividend is not optional—it is an economic imperative.

This article is authored by Pooja Sharma Goyal, Founding CEO, The Udaiti Foundation.