Unlocking Rural Women’s Economic Potential

A higher female labor force participation rate can significantly enhance family income and welfare, particularly in rural India.

Women and Employment

• According to The India Employment Report (IER) 2024, the Female Labor Force Participation Rate (LFPR) in India is notably low compared to the global average (53.4%, 2019).
• The rate has dropped from 38.9% in 2000 to 23.3% in 2018, yet rural India saw a 12% rise from 2018 to 2022, highlighting a significant opportunity for employment generation.
• In 2022, 36.5% of women were engaged in unpaid family labor, in contrast to 9.3% of men.
• The disparity between female and male unpaid family labor employment is about one-third in rural areas, compared to just 8.1% in urban areas.

Scope of Rural Women in Employment

Increased Productivity and Innovation

• Larger Workforce: Higher female labor force participation is linked to GDP growth. Kerala, for instance, boasts high female literacy and social mobility, reflected in its above-average Female LFPR (49%) and Gross State Domestic Product growth of approximately 8.02%.
• Diverse Skills and Perspectives: Women bring unique skills to sectors like agriculture and handicrafts, fostering innovation. The Kudumbashree Mission in Kerala, for example, empowers women through Self-Help Groups (SHGs), leading to successful micro-enterprises in food processing and handicrafts.

Improved Household Income and Well-being

• Increased Family Earnings: Women’s income enhances household finances, enabling investments in food, education, and healthcare.
• Empowerment and Decision-Making: Women’s earnings influence household decisions, particularly regarding children’s education. Studies by the International Food Policy Research Institute (IFPRI) indicate that women’s participation in agriculture in India increases spending on girls’ education.

Stronger Rural Economies and Communities

• Entrepreneurship: Women-led businesses diversify rural economies and create employment opportunities. The MSME Development Institute (MSME-DI) has recorded a significant rise in women-led micro-enterprises in Andhra Pradesh, growing by over 30% in the past five years.
• Improved Community Development: Women reinvest their earnings in community infrastructure and services. In Rajasthan, for example, SHGs collaborate to address village needs by pooling resources and effectively utilizing government schemes.

Unlocking Agricultural Potential

• Women’s Knowledge: Women’s expertise and agricultural knowledge enhance productivity through improved practices. The Biodiversity Authority of India (NBAI) shows that women farmers in Odisha manage over 70% of indigenous millet seed varieties compared to just 20% by men.

Causes of Lower Participation of Rural Women in Employment

• Social Norms and Gender Roles: Women are often expected to prioritize household chores and childcare, limiting their acceptance of outside work. NFHS-5 data shows rural women spend over four times more time on unpaid care work than men.
• Lack of Appropriate Employment Opportunities: Rural women may not meet formal job requirements, and a preference for home-based work limits their options.
• Education Gap: According to Census 2011, rural women’s literacy rate (56.8%) is significantly lower than urban women’s (79.9%).
• Limited Access to Resources: Women face barriers in accessing resources like irrigation for farming. The International Water Management Institute (IWMI) reports that only about 9% of rural women in India have access to irrigation facilities, compared to 36% of rural men.
• Work-Life Balance Challenges: Few rural communities in India have access to formal childcare facilities, affecting women’s workforce participation.
• Safety Concerns: According to the National Crime Records Bureau (NCRB) of India, over 97,000 cases of crimes against women were reported in rural India in 2020.
• Limited Access to Market Opportunities: Insufficient linkages and information networks prevent rural women from accessing broader markets. About 87% of rural households in India lack access to markets within a 5-kilometer radius, impacting rural women’s accessibility (Sample Survey Office, NSSO).
• Discriminatory Land Ownership Laws: Laws favoring men restrict rural women’s access to land. NFHS-5 data reveals that a small percentage of rural women own land or property in their names.
• Cultural Barriers and Social Stigma: Women are expected to prioritize household duties in rural communities. NFHS-5 data shows that almost 60% of rural women in India spend over four hours daily on unpaid domestic chores.

Government Initiatives

• Deendayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY): Provides skill development training to rural poor youth, with a focus on women (over 1.1 crore women have been trained).
• Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM): Promotes self-employment and income generation activities for rural women through SHGs (as of 2022, it covered over 4.6 crore rural women across India).
• Mahila Kisan Sashaktikaran Pariyojana (MKSP): A sub-scheme of DAY-NRLM focused on empowering women in agriculture by providing training, credit, and market linkages.
• Ujjawala Scheme: Provides LPG connections to BPL households, enhancing the quality of life for rural women by reducing their time spent cooking and collecting firewood.
• Lakhpati Didi: Aims to elevate the economic status of women in SHGs by setting a target for their annual income to reach ₹1 lakh or above.

Way Forward

• Skill Development and Training Programs: Train women in region-specific skills like organic farming and food processing. The Himachal Pradesh Horticulture Produce Marketing and Processing Corporation (HIMFED) offers fruit and vegetable processing programs for women SHGs.
• Promoting Home-Based Work: Establish e-commerce platforms for SHGs to sell handicrafts and apparel directly. TRIFED’s Tribes India e-Marketplace connects tribal artisans, including rural women, with broader markets.
• Addressing Infrastructure Gaps: Invest in childcare facilities such as Anganwadi (rural daycare centers) and upgrade transportation infrastructure. Tamil Nadu’s Integrated Child Development Services Scheme provides childcare and health services, supporting mothers in workforce participation.
• Market Accessibility: Enhance capacity through training and ensure access to resources and market linkages. The Ima Keithel market in Manipur serves as an example.
• Promoting Gender Equality and Awareness: Run social awareness campaigns to challenge gender stereotypes. The Beti Bachao Beti Padhao campaign aims to improve gender equality.
• Leveraging Technology: Provide digital literacy training to access online resources and government services, and develop mobile applications for job opportunities and market information. Pradhan Mantri Gramin Digital Saksharta Abhiyan promotes digital literacy among rural women.

Ima Keithel

• Also known as the “Mothers’ Market,” this unique market is located in Imphal, Manipur, and is run entirely by women.
• Established in the 16th century, Ima Keithel has been a significant center of commerce for centuries, providing a space for women to sell their products and services.
• The market is a hub for various goods, including traditional textiles, jewelry, spices, and local cuisine.
• Beyond its economic significance, it symbolizes women’s empowerment and resilience in Manipur.