Report on Female Labour Force Participation and its Impact on India’s Sustainable Development Goals

Executive Summary

A recent analysis indicates that enhancing female participation in the workforce is a critical driver for India’s economic growth and the achievement of its manufacturing sector goals. This imperative directly aligns with several United Nations Sustainable Development Goals (SDGs), particularly SDG 5 (Gender Equality) and SDG 8 (Decent Work and Economic Growth). Addressing systemic barriers, such as the provision of safe and adequate housing, is fundamental to unlocking this potential, as demonstrated by recent initiatives in the electronics manufacturing sector. This report synthesizes key findings on the correlation between female employment, economic targets, and progress toward sustainable development.

Economic Growth and Gender Equality Nexus (SDG 5 & SDG 8)

According to S Krishnan, Secretary of the Ministry of Electronics and Information Technology (MeitY), India’s economic growth trajectory is intrinsically linked to the increased integration of women into the workforce. Failure to enhance female labour participation presents a significant obstacle to realizing optimal economic expansion and national development targets.

• Economic Growth Constraint: The current pace of economic growth is considered suboptimal and will remain so unless more women are employed.
• Manufacturing Sector Target (SDG 9): Achieving the government’s objective of increasing the manufacturing sector’s contribution to 25% of the Gross Domestic Product (GDP) is contingent upon higher female workforce participation.
• Demographic Balancing: For states with ageing populations, such as Tamil Nadu, a higher female participation rate is crucial for balancing labour market dynamics.

Progress and Sector-Specific Analysis

While national statistics show improvement in the Female Labour Force Participation Rate (FLFPR), significant gaps remain, particularly concerning women in formal employment and leadership roles. This highlights the ongoing challenge in achieving SDG 5, which calls for full and effective participation and equal opportunities for women in economic life.

1. National FLFPR Trends: The FLFPR has shown a notable increase, rising from 23.3% in 2017-18 to 41.7% in 2023-24. However, the figure for women as employees is considerably lower.
2. Information Technology (IT) Sector: An assessment by the Udaiti Foundation reveals that the IT sector has the second-highest participation rate for women as employees, at 34%.
3. Leadership Gap (SDG 5.5): The same analysis of 115 NSE-listed IT companies indicates that women hold only 22% of key managerial positions and board of director roles, underscoring the need for greater efforts to promote women in leadership.

Ensuring Decent Work and Sustainable Communities (SDG 8 & SDG 11)

The provision of safe working and living conditions is a primary concern for female employees and a prerequisite for attracting and retaining them in key sectors like electronics manufacturing. Recent events and subsequent actions demonstrate a multi-stakeholder approach to creating an enabling environment, contributing to SDG 8 (Decent Work) and SDG 11 (Sustainable Cities and Communities).

1. Challenge Identified: A 2021 protest by approximately 3,000 female Foxconn employees over unsuitable living conditions highlighted a critical barrier to sustainable employment.
2. Government Response (SDG 11.1): In response, a state entity in Tamil Nadu constructed secure accommodation for 20,000 women employees near the Chennai electronics cluster, leveraging the PM Awas Yojana to provide safe and affordable housing.
3. Private Sector Investment: The government’s initiative has catalyzed private investment in dormitory-style accommodations for female workers, often structured through shelter funds, further ensuring safe living conditions and supporting the growth of large-scale factories reliant on female labour.

Analysis of the Article in Relation to Sustainable Development Goals

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 5: Gender Equality
  
  The article’s central theme is the necessity of increasing women’s participation in the workforce to boost economic growth. It discusses the female labour force participation rate, the percentage of women in specific sectors and leadership roles, and the importance of safe working and living conditions for female employees.
• SDG 8: Decent Work and Economic Growth
  
  The article directly links higher female participation in the labour force to the pace of economic growth and achieving GDP targets. It highlights the creation of jobs in the manufacturing sector and the importance of “decent work” by referencing the need for safe conditions for women employees.
• SDG 9: Industry, Innovation and Infrastructure
  
  The text explicitly mentions the government’s goal of raising the manufacturing sector’s share in the gross domestic product (GDP) to 25%. The focus on the electronics manufacturing sector and the development of large-scale factories are central to this goal.
• SDG 11: Sustainable Cities and Communities
  
  The article addresses the provision of safe and adequate housing for workers. It specifically mentions the construction of accommodations for 20,000 women employees near an electronics cluster under the PM Awas Yojana and private investment in dormitory-style housing.

2. What specific targets under those SDGs can be identified based on the article’s content?

1. Target 5.5: Ensure women’s full and effective participation and equal opportunities for leadership at all levels of decision-making in political, economic and public life.
   
   This target is relevant as the article discusses not just the overall participation of women in the workforce but also their representation in leadership roles. It cites data showing that the percentage of women in key managerial positions and on boards of directors in IT companies was 22%.
2. Target 8.5: By 2030, achieve full and productive employment and decent work for all women and men… and equal pay for work of equal value.
   
   The article’s main argument that India’s economic growth depends on more women joining the workforce directly relates to achieving full and productive employment. The emphasis on improving “safety and conditions of work and stay” for women in the electronics sector aligns with the “decent work” aspect of this target.
3. Target 9.2: Promote inclusive and sustainable industrialization and, by 2030, significantly raise industry’s share of employment and gross domestic product, in line with national circumstances, and double its share in least developed countries.
   
   This is directly addressed by the statement that without more women in the workforce, it won’t be possible to realize the government’s aim of “raising the share of the manufacturing sector in gross domestic product (GDP) to 25 percent.”
4. Target 11.1: By 2030, ensure access for all to adequate, safe and affordable housing and basic services and upgrade slums.
   
   The article provides a concrete example of action towards this target by describing how the state in Tamil Nadu “built accommodations for 20,000 women employees close to the electronics cluster in Chennai under the PM Awas Yojana” to address unsuitable living conditions.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

• Female Labour Force Participation Rate (FLFPR): The article explicitly states this indicator, noting its rise to “41.7 percent in 2023-24, up from 23.3 percent in 2017-18.” This directly measures progress towards women’s economic participation under SDG 5 and SDG 8.
• Proportion of women in managerial positions: The article provides the figure that “the percentage of women in key managerial positions and board of directors was at 22%” in NSE-listed IT companies. This is a direct indicator for Target 5.5.
• Manufacturing value added as a proportion of GDP: The goal of “raising the share of the manufacturing sector in gross domestic product (GDP) to 25 percent” serves as a clear indicator for Target 9.2.
• Proportion of urban population living in slums, informal settlements or inadequate housing: While not stated as a proportion, the provision of “accommodations for 20,000 women employees” is a quantifiable measure of progress towards Target 11.1, addressing inadequate housing for a specific segment of the workforce.

4. Summary Table of SDGs, Targets, and Indicators

Source: m.economictimes.com