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MoSPI’s latest “Women and Men in India” report shows evidence of significant shifts in gender norms: these are necessary for higher female labour-force participation in our view (report). Infant mortality is dropping faster for females than for males, as are drop out ratios from secondary schools. More girls are now in higher education than boys, and the purpose is shifting from social signaling to economic value. Women participate more in decision-making (households, corporates and in elections). Wage gap in rural areas has narrowed (likely helped by women-centric income-transfer schemes, which in turn are due to their rising electoral relevance). However, workforce participation is still among the lowest in G20, and 125mn educated women are not in the labour-force.
Changing Norms: Sharp improvement in education and health indicators
The latest “Women and Men in India” report shows a significant catchup in education and health indicators for women. Infant mortality has been falling faster for females than for males and is now below that of males. Secondary school dropout rates and enrolment in higher education have also improved more for females, and both are now better than for males. Further, the shift in courses taken signals the purpose of female education is changing from social signalling to economic value Our report showed these shifts in gender norms are necessary conditions for higher female economic participation.
More women are working, and wage gap is narrower, but quality of work is low
However, this is not sufficient. The recent rise of female labour participation in India (+17pp since 2018) has been mainly in rural areas, and in agriculture, unpaid low-productivity self-employment or paid informal work. It remains one of the lowest in G20. Labour demand is the culprit: ~125mn women with secondary or higher education are not in the labour force. Encouragingly, though, likely due to income transfer schemes directed at women, the wage gap in rural India in lower per-capita income states has narrowed vs. 2018. The urban wage gap hasn’t improved but is lower than in rural areas.
Further evidence of shifting norms: more involved in decision-making/managers
Women’s voting percentages have seen a step-jump after 2014, resulting in their share of votes rising to ~49%, vs. 44-45% till 2009: women-centric schemes have risen. More women now participate in household decisions (health, household purchases) with improvement across states and are gaining autonomy in family planning. The share of women in managerial positions in corporate India has also risen from 25% in 2017 to 29% in 2025, but they remain underrepresented. They now run more businesses, with better access to finance (women got 84% of PMMY/Stand-up India funds).
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