The Missing Half: Axis Bank Study Flags Low Female Workforce Participation as Key Challenge for India’s Growth
Axis Bank’s survey indicates that aspirations among educated women are shifting, with many viewing work as a long-term career and an integral part of their identity.
Report says increasing women’s participation in paid work crucial for achieving ‘Viksit Bharat’ by 2050
New Delhi: Increasing women’s participation in paid work will be critical for India to sustain long-term economic growth and achieve its ‘Viksit Bharat’ goal by 2050, according to a new study released by Axis Bank.
Titled “The Missing Half: Women and India’s Growth Challenge,” the report draws on global evidence, detailed analysis of Indian data and a proprietary survey of nearly 11,000 college-educated women across 42 cities. It notes that as India’s fertility rates decline, the country faces a narrowing window to grow rich before its population ages, making higher workforce participation essential.
The study estimates that to sustain an average growth rate of around 7 percent over the next 25 years, India’s overall participation in paid work must increase from about 47 percent to nearly 60 percent. Women’s entry and advancement in the workforce will play a decisive role in achieving this target.
However, India currently has one of the lowest female labour force participation rates among G20 economies. A large share of employed women remain concentrated in agriculture, self-employment or unpaid work, while nearly 60 percent of women in paid employment are in informal arrangements without contracts or social security benefits.
The report highlights that around 125 million educated women remain outside the workforce, with nearly 60 percent of graduates choosing not to participate in paid work. Workforce participation also drops significantly after marriage and childbirth, with safety concerns, mobility challenges, childcare responsibilities and rigid workplace structures cited as key barriers.
Axis Bank’s survey indicates that aspirations among educated women are shifting, with many viewing work as a long-term career and an integral part of their identity. Yet challenges such as career breaks, skill gaps, age bias and limited flexible job opportunities continue to make re-entry into the workforce difficult.
Neelkanth Mishra, chief economist at Axis Bank and head of global research at Axis Capital, said India must expand labour demand, strengthen urban infrastructure, improve childcare support and remove outdated legal barriers to enable more women to participate in paid work.
Rajkamal Vempati, group executive and head of human resources at Axis Bank, said the country’s growth potential is closely linked to expanding opportunities for women. He noted that redesigning career pathways to allow flexible entry and re-entry into the workforce will be critical for unlocking India’s economic potential.
The report concludes that raising women’s participation in the workforce is not merely a social objective but a core economic priority for sustaining India’s long-term growth trajectory.
Click here for full report: The Missing Half: Women and India’s Growth Challenge
