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Tariffs, Women, and India’s Growth
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Context:
The U.S. President’s proposal of 50% tariffs on $40 billion worth of Indian exports threatens India’s economy and highlights the urgency of women’s economic participation.
Tariff Shock and Economic Risks
- Export Vulnerability: U.S. constitutes 18% of India’s exports; new tariffs could cause 30–35% cost disadvantage compared to Vietnam.
- Sectoral Impact: Labour-intensive industries like textiles, gems, leather, and footwear employing nearly 50 million workers face up to 50% export decline.
- Gendered Consequences: These sectors disproportionately employ women, intensifying the challenge of India’s already low female labour force participation rate (37–41.7%).
Demographic Dividend and Missed Potential
- Demographic Window: India’s demographic dividend lasts until 2045; failure to integrate women risks wasting this opportunity.
- FLFPR and Growth: IMF estimates closing the gender gap can raise India’s GDP by 27% in the long term, but systemic barriers limit participation.
- Comparative Lessons: U.S., China, Japan, and the Netherlands show how legal protections, childcare, and flexible jobs raised female participation and national growth.
Policy Pathways and Case Studies
- Mobility and Access: Karnataka’s Shakti scheme boosted female bus ridership by 40%, enhancing work and education opportunities.
- Gig Economy Formalisation: Platforms like Urban Company enable women to earn ?18,000–?25,000 with safety nets such as insurance and maternity benefits.
- Public Employment Models: Rajasthan’s Indira Gandhi Urban Employment Guarantee Scheme created over 4 crore person-days, with 65% jobs for women in flexible neighbourhood-based roles.
Practice Question
“India’s economic resilience amid global trade disruptions depends significantly on enhancing female labour force participation. Discuss the structural reforms and policy innovations required to integrate women into the workforce.” (250 words)
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