| Introduction: Contextual Introduction Body: Highlight importance of unpaid care labour in Indian economy Conclusion: Way forward |
The statement, “The contribution of the care economy is indispensable but largely unrecognized in India’s GDP,” underscores the significant but often overlooked role of unpaid care labor, primarily performed by women, in supporting the economy and society.
Importance of Unpaid Care Labor in the Indian Economy
- Foundation of the Labor Force and Economy: Unpaid care labor supports the labor force by ensuring family well-being, preparing children for future productive roles, and caring for elders and dependents. This labor, mainly undertaken by women, enables paid workers to participate in the economy, indirectly contributing to GDP.
- Economic Value of Unpaid Care Work: Studies estimate that unpaid care work would amount to a significant percentage of GDP if monetized. According to the International Labour Organization (ILO), unpaid care work could account for nearly 20% of GDP in countries like India if it were formally recognized and compensated. This figure highlights the enormous but unaccounted contribution to economic productivity.
- Relieving the State’s Welfare Burden: Unpaid care work also alleviates the government’s burden by substituting for public services like childcare and eldercare. This informal support system reduces the state’s spending on welfare but comes at a high personal cost to the caregivers themselves, often limiting their opportunities for paid employment.
Issues Surrounding the Lack of Recognition of Unpaid Care Labor
- Gender Inequality and Economic Exclusion: In India, around 90% of unpaid care work is performed by women, leading to gender inequality in economic participation. The unrecognized and uncompensated nature of this work often results in economic exclusion for women, limiting their access to income and reinforcing the gender gap in employment and earnings.
- Impact on Women’s Labor Force Participation: The substantial demand of unpaid care labor reduces women’s ability to join the paid workforce. This is reflected in India’s low female labor force participation rate, which stands at around 20% and is among the lowest globally. This exclusion perpetuates a cycle where women remain dependent and their potential economic contributions are unrealized.
- Psychological and Health Burden on Caregivers: Unpaid care work is physically and emotionally demanding, often leading to stress, health issues, and lack of personal time. The lack of formal recognition of this labor leaves caregivers without adequate support, and the resulting burnout further impacts their health and economic security.
Conclusion
Unpaid care labor is essential for India’s economic stability and social resilience, yet it remains unrecognized in GDP metrics and undervalued in policy formulation. Recognizing and supporting this labor through appropriate policies would not only enhance gender equality but also increase India’s economic productivity.
