[Answered] India’s economic vulnerabilities have a gender dimension. Examine how empowering women as economic agents can build resilience against external shocks and promote social empowerment and inclusive growth.

Introduction

India’s $4.19 trillion economy aspires to global leadership, yet its female labour force participation rate (FLFPR)—just 37–41% (PLFS 2023)—limits growth. IMF estimates gender parity could raise GDP by 27%.

The Gendered Nature of India’s Economic Vulnerabilities

1. Trade Shocks Hit Women-Centric Sectors: U.S. tariffs (50% on $40 billion exports) risk a 1% GDP loss, threatening textiles, gems, leather, footwear—employing ~50 million, majority women. India’s export dependence (U.S. 18% share) vs. China’s diversified base increases fragility.
2. Low Female Labour Force Participation and Informality: Women concentrated in informal, low-wage work (70% without social security); first to exit during downturns. Rural women mostly in unpaid family work, urban stagnation due to mobility, safety, sanitation deficits.
3. Demographic Dividend at Risk: Window closes by 2045; without women’s economic integration, the dividend could become a demographic burden, as seen in Italy, Greece.
4. Structural Barriers Intensify Shocks: Care economy burden, women spend ~7.2 hours/day on unpaid work (OECD), limiting productivity. Cultural and skill gaps reinforce exclusion; gender digital divide persists (NFHS-5: only 33% women use mobile internet).

Why Women’s Empowerment Builds Resilience and Inclusive Growth

1. Shock Absorption and Macro Gains: Higher incomes diversify household risk; women invest more in health and education (World Bank). IMF, McKinsey: Closing gender gaps boosts GDP by 20–30%, expands tax base, strengthens consumption-led growth.
2. Enhancing Export Competitiveness and Innovation: Larger skilled female workforce increases production agility; critical for sectors competing with Vietnam/Bangladesh. China’s 60% FLFPR post-1978 reforms supported rapid industrialisation.
3. Social Empowerment and Intergenerational Benefits: Paid work raises agency, literacy, fertility choices, health outcomes. SHG revolution (DAY-NRLM): 9 crore rural women linked to credit, entrepreneurship, and local governance.

Policy Innovations and Case Studies

1. Karnataka’s Shakti Scheme (2023): Free bus travel, 40% rise in female mobility, better job access.
2. Urban Company gig model: 15,000 women earn ₹18–25k/month; insurance, maternity, skill benefits.
3. Rajasthan’s IGUEMS: 65% women beneficiaries, neighbourhood jobs in sanitation and care work, many first-time earners.
4. International lessons: U.S. WWII equal pay, childcare; Japan’s 7% FLFPR rise (2012–19) lifted GDP/capita; Netherlands’ part-time model suits cultural preferences.

Way Forward

1. Gender-responsive skilling: STEM, digital literacy, entrepreneurship.
2. Infrastructure & safety nets: Childcare, transport, sanitation, social protection for gig/informal workers.
3. Fiscal & trade policy: Gender budgeting, tax incentives, export diversification.
4. Behavioural change: Public campaigns, male allyship, recognition of unpaid work in GDP (SDG 5.4).

Conclusion

As Amartya Sen’s Development as Freedom argues, “agency is development’s core”. Empowering women converts vulnerability into strength, delivering resilient growth, equity, and demographic dividends—India’s truest pathway to inclusive prosperity.