Women-led Growth Model in India

Recently, the Chief Economic Advisor (CEA) has mentioned about the218.8% increase in budgetary allocation for schemes for the welfare and empowerment of women and even acknowledged that women in India face the “’motherhood penalty” with a drop-in female labour force participation rate around childbearing years.

About the move:

• As announced in the budgetary discussion, the central government is going to increase the gender budgeting up to5% of the GDP, in the financial year 2025.
• The step will enhance the stability of the women-led development model and increase fund allocation for Gender budgeting.

What is Gender Budgeting?

• Gender Budgeting is a powerful tool for achieving gender mainstreaming to ensure that the benefits of development reach women as much as men.
• The rationale for gender budgeting arises from recognition of the fact that national budgets impact men and women differently through the pattern of resource allocation.
• Women constitute 48% of India’s population
• , but they lag behind men on many social indicators like health, education, economic opportunities, etc. thus, gender budgeting is important.

Gender budgeting status in India:

• Gender Budget Statement was first introduced in Budget 2005-06. Various ministries and department provide information to finance ministry based on which Gender Budget Statement is prepared.
• This helps to monitor expenditure and public service delivery from a gender perspective, as a means of mainstreaming women’s concerns in all activities and improving their access to public resources.
• Also, it was instructed to all the ministries and departments, to open the Gender Budgeting Cell (GBC).

Issues with Gender Budgeting in India:

• India's gender Budget remains in the range of 4 - 6% of the total expenditure and less than 1% of its GDP. It also lacks fiscal marksmanship, which is the accuracy of budgetary forecasting.
• Around 90% of gender budgeting is concentrated in five ministries. When it comes to livelihood, MGNREGA is the biggest scheme in gender budgeting.
• Areas like transportation, water collection and water security remain ignored.
• The last Budget failed to address critical areas highlighted by the pandemic in 2021-22 and 2022-23, despite the disproportionate impact of Covid-19 on women.

Measures to bring care economy in monetized economy

• Recognize unpaid Work: Recognizing the economic value of unpaid care work.
• Equal Pay for Equal Work: Irrespective of whether it falls under the care or monetized economy.
• Social Protection Measures: Implementing policies like paid parental leave, Work from home (WFH) culture, subsidized healthcare, and pensions, which support women in their dual roles as caregivers and workers.
• Supporting Women's Employment: Providing opportunities to participate in the formal labor force through skill development, training, education, and policies that enable work-family balance.
• Promoting Women's Entrepreneurship: Encouraging and supporting women to start and grow businesses, especially in sectors related to care services.Income-Generating Activities through Self-Help Groups.