It’s said that there’s a glaring disparity casting a shadow on India’s economic potential. According to the World Bank, in 2022, close to 25% of women aged 15 and older were actively engaged in India’s labour force. The global average is said to be close to 50%. According to analysis, nearly 98% of firms in India fall into the micro-sized category. Within the manufacturing sector, one might expect larger enterprises to dominate, but it’s said that 30% of firms remain micro-sized. And yet, it’s these micro-firms that are said to collectively employ more than half of India’s workforce, amounting to close to 55%.
According to the analysis, a direct correlation between firm size and the proportion of female workers employed is said to be established. Over a period spanning 1998-2019, for every 1% increase in the workforce of a firm, there was said to be a corresponding 0.47% increase in female employment. This correlation is said to encompass agriculture, construction, manufacturing, services and other sectors. And it’s said that close to 30% of female workers are likely to find employment in firms boasting a workforce of 20 or more employees compared to those with fewer than 6.
But, according to the study, women in larger companies may be more productive, justifying better wages or salaries. There were said to be labour law amendments in the Indian states of Rajasthan and Jharkhand, which eased regulatory constraints on firms seeking to hire additional employees. This was said to have led to a close to 15% surge in the proportion of female workers in those states. And those states were said to have witnessed a 15% increase in output, accompanied by notable growth in profits and welfare expenses per employee, compared to states without such policy revisions.
