These figures are more than just economic indicators—they reflect a broader change in societal outlook. As workplaces become more inclusive, businesses stand to benefit from diverse perspectives and a talent pool that is expanding like never before. The future of India’s economy is being shaped by women who are not just joining the workforce but redefining it.

Several factors have contributed to this rise in female workforce participation, including advancements in education, shifts in India’s economic structure, and improved labor force measurement. Increasing women’s participation in the workforce isn’t just about equality—it’s an economic necessity. A McKinsey Global Institute report estimates that bridging the gender gap in labor force participation could add $770 billion to India’s Gross Domestic Product (GDP) by 2025. Studies show

that organizations with more women in leadership roles outperform their peers in profitability and productivity. However, systemic challenges continue to hinder women’s progress in the workplace.

Despite gains in education, many women drop out before transitioning into the workforce. Key challenges include:

· Social and cultural norms: Women often face societal expectations to prioritise domestic responsibilities over careers. The disproportionate burden of unpaid care work limits their professional growth.

· Workplace biases: Gender stereotypes influence hiring, promotions, and salary structures. Women hold only 18% of senior management positions in India (Grant Thornton, 2023).

· Safety concerns: Limited safe transportation and concerns about workplace harassment discourage many women from pursuing jobs.

· Inadequate maternity support: Although India offers 26 weeks of paid maternity leave, the lack of childcare facilities and flexible work options leads to high dropout rates among working mothers.

Solving these challenges requires a collaborative approach involving policymakers, businesses, and society. Key measures include:

· Flexible work policies and childcare support: Companies should implement hybrid work models, part-time roles, and childcare assistance. Workplaces with flexible policies report a higher retention rate for women employees

· Empowering women entrepreneurs: Access to finance remains a challenge for women-led businesses. Expanding credit schemes, mentorship programs, and capacity-building initiatives can encourage more women to start and sustain enterprises.

· Enhancing workplace safety: Stronger anti-harassment policies and improved transport options are essential. Government initiatives like the Nirbhaya Fund should be effectively executed to ensure safer urban mobility.

· Leadership development and mentorship: Organisations should actively foster leadership pathways for women through mentorship and sponsorship programmes. Encouraging gender-diverse hiring practices will drive long-term change.

· Shifting societal perceptions: Educational institutions and media play a crucial role in redefining gender roles. Promoting shared household responsibilities can help break traditional stereotypes and encourage workforce participation.

India has a tremendous opportunity to harness the full potential of its talent pool. Enhancing women’s workforce participation is vital for building a robust, inclusive economy. Businesses, policymakers, and society must collaborate to remove barriers, challenge outdated norms, and create an ecosystem where women can thrive professionally. The conversation is no longer about why we need more women in the workforce—it’s about how soon we can make it happen.

This article is authored by Divya S, director, business strategy, Capri Global Capital Ltd.