Why gender disparity is actually an economic challenge in India

The women workforce in India contributes a mere 18 percent to its GDP, finds a report by McKinsey & Company. It also underlines the fact that only 25 percent of women account for the total labour force in the country. Unfortunately, their GDP contribution is far below the global average of 37 percent.

Despite all endeavours made by the government, non-profit entities, and corporates, these statistics make us want to pause and ask – Have we really been able to make a significant impact on equal representation of women in the workplace?

Each year, we read a plethora of Women’s Day stories about the increasing participation of women in almost all economic verticals and entry in boardrooms of many companies. Upholding the cause, in a historic move, the Rajya Sabha also passed the Women’s Reservation Bill, under which 33 percent of seats in India’s Parliament and state legislative bodies are reserved for women.

Given this attitudinal change, organisations are taking gender equality into serious considerations while evaluating work culture.

Different genders, different challenges

However, this change in perception is only scratching the surface of a deep-rooted issue. To give you a better perspective – the needs and challenges encountered by men and women are different. Sensitising people on gender equality can only influence how we treat everyone.

But, to create equal opportunities for all genders, we must focus on gender equity, i.e., categorically dealing with gender-specific needs, giving a level playing field for all. The approach towards this end needs to be more proactive, than simply floating the idea and waiting for the society to evolve.

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As Lise Kingo, CEO, UN Global Compact, rightly puts it, “Gender equality is not an evolutionary process; we have to spark a gender equality revolution”.

Underpinning this outlook of Lise is the knowledge that not all women start on an equal footing. The inequality and discrimination do not begin and end with disparities in opportunities and breaking the glass ceiling. It is further worsened by and overlaps with various other forms of societal nuances that make women vulnerable. This is especially true in the case of women in regional, rural, and remote communities.

Shared, not segregated

While societal biases are evident, we find it easier to ignore discrimination. That’s because such behaviour has prevailed in our societies for so long that it is now considered normal.

What behaviour are we talking about? Gender segregation of family and household responsibilities!

Gender norms and related practices in our society often impose a bulk of house and family responsibilities on women. This attitude compels women to choose between family and work.

These cultural biases and domestic responsibilities often don’t consider the unpaid work done and the time spent by women seamlessly running a household. This vital contribution to the welfare of a family, and eventually the society, goes unaccounted for in the traditional measures of GDP.

As we move out of these remote areas and get into the cities, the situation is not very different. As per a worldwide survey conducted by Accenture, 22 percent of women are less likely to reach managerial positions as compared to men and the cause can be attributed to gender segregation biases.

Adding to the plight, these biases didn’t remain restricted to societal diktats; they contaminated workplaces through industrial and occupational gender segregations.

Corroborating the statement, a report by World Economic Forum, based on LinkedIn research, says, “women are under-represented in manufacturing, construction, engineering, communications technology etc., leading to loss of gender diversity benefits”.

Not a cookie-cutter approach

Given these circumstances, the priority is to tailor targeted solutions, depending on places and situations, thereby bringing in a revolution in gender equality.

Such customised measures would not only encourage more women to join the labour force, but also enable them to take on more demanding roles and spend equal amounts of time on paid work as their male counterparts.

The next question is – Why is it so important for women to spend equal amounts of time on paid work as men? The answer to that lies in the economy of our country and the global GDP.

Gender Inequality has gone beyond being a moral or a social issue. It has now transpired into a critical economic challenge. Yes, you read that right!

An economic issue

Women make for half of the world’s working population and if they are kept from achieving their full economic potential, the global economy suffers. Substantiating our stance is a study conducted by McKinsey Global Institute.

The report highlights the power of parity and says advancing women’s equality can add as much as $12 trillion to the global GDP by 2025. The report further stated that if women were to participate in the economy identically to men, the global GDP could increase by $28 trillion by 2025.

Treading on this line of thought, the United Nations’ Sustainable Development Goal 5 is centred on women emerging as a key differentiator of the development paradigm. Expressing deep commitment towards SDG 5, NITI Aayog has been mandated as the nodal agency by the Indian government, responsible for the implementation and monitoring outcomes for projects that relate to various Sustainable Development Goals.

Gender equality is no more only a fundamental human right; it is a necessary foundation for a peaceful, prosperous, and sustainable world.

(Edited by Saheli Sen Gupta)