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Gender Budget in India 2025 and Women’s Economic Participation by 2047

Context: The Finance Minister in the recent Union Budget laid out a vision for Viksit Bharat (Developed India) with the goal of achieving 70% women in economic activities. The inclusion of women as a priority within this framework reinforces the government’s pledge towards women-led development.

Recent Budget Announcements for Women Empowerment

Increased Gender Budget Allocation

  • Gender Budget: ₹4.49 lakh crore, which is 8% of the total Budget (highest in two decades).
  • 49 Union Ministries and Departments now have gender budgets.
  • 12 new Ministries from non-conventional sectors (Railways, Ports, Shipping, Land Resources, Pharmaceuticals, etc.) have integrated gender-responsive budgeting.

Enhanced Funding for Women-Centric Schemes

₹1.24 lakh crore (52% of these funds directly benefit women and girls) allocated to key skilling and livelihood schemes, including:

  • Skill India Programme
  • Entrepreneurship & Skill Development Programme (ESDP)
  • National Skill Training Institutes
  • Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM)
  • Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS)
  • PM Employment Generation Programme
  • PM Vishwakarma
  • Krishonnati Yojana

Support for Women in the Gig Economy

  • Formalisation of gig workers through identity cards and registration on the e-Shram portal.
  • Access to social security benefits and financial inclusion
  • Emphasis on labour code enforcement for job security, maternity benefits, and social protection.

Financial & Digital Inclusion

  • ₹600 crore dedicated gender budget under the India AI Mission.
  • Centre of Excellence on AI for Education to enhance digital literacy and workforce inclusion.
  • Easier access to credit for women entrepreneurs, including collateral-free loans.
  • Delinking Kisan Credit Cards from land ownership to support women farmers in accessing loans and credit.
Periodic Labour Force Survey (PLFS) Data on Female Labour Participation
  • India’s Female Labour Force Participation Rate (FLFPR):
    • 2021-22: 33%
    • 2023-24: ~42%
    • Global Average (ILO): 47%
    • Gap with Male LFPR (79%): 37%.
  • Sectoral Distribution of Working Women:
    • 90% of working women are engaged in the informal sector.
    • Women-owned MSMEs: 20.5% of all registered MSMEs employ 27 million people.
    • The gig and platform economy is emerging as a key employer for women, but challenges remain in wages, job security, and benefits.

Way Forward: Realizing 70% Women’s Economic Participation by 2047

Diversity of Economic Roles

  • Bridge the gender gap in leadership roles by incentivizing companies to promote women executives.

Financial & Economic Inclusion

  • Expand credit access with alternative credit scoring models and collateral-free loans.
  • Encourage Women-Led MSMEs through targeted incentives and digital marketplaces.
    • Establishing 30 million additional women-owned businesses could generate 150-170 million jobs by 2030.
  • Introduce gender-disaggregated tracking for government welfare and loan schemes.

Strengthening Social Protection

  • Extend maternity benefits and childcare support for informal sector workers.
  • Strengthen social security entitlements under e-Shram for gig and informal sector women workers.
  • Enhance safety and workplace rights through better labour law enforcement.

Policy & Norm Transformation

  • Simplifying documentation requirements for economic and social security provisions, such as delinking Kisan Credit Cards from land ownership, would help women farmers avail loans and credit facilities.
  • Promote mindset change campaigns to shift societal attitudes toward women’s economic roles.

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