Source: https://indianexpress.com/article/opinion/columns/indian-women-are-working-more-heres-why-9136549/
According to the 'Indian Economy — A Review' (2024) by the Department of Economic Affairs, there has been a notable increase in the female labor force participation rate (FLFPR) over the past six years, particularly in rural regions. The report highlights that while FLFPR in urban areas has also been on the rise, the growth in rural FLFPR has been particularly significant. This surge in rural female FLFPR has been accompanied by a rise in the proportion of self-employment and agricultural activities among working women, aspects that warrant closer examination. In rural areas, the FLFPR has risen from 24.6 percent in 2017-18 to 41.5 percent in 2022-23, while in urban areas, it has increased from 20.4 percent to 25.4 percent during the same timeframe.
According to the author of this article, the skilling support (farm and non-farm) and credit access for diversified livelihoods to women’s collectives under the Deendayal Antyodaya Yojana National Rural Livelihood Mission (DAY-NRLM), and rising female employment under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) are the explanations for such a trend.
The DAY-NRLM has reached over 9.96 crore women and facilitated more than 90 lakh Women’s Self-Help Groups (SHGs) to access Rs 38,892 crore as capital support. With the assistance of over five lakh women Community Resource Persons who have lifted themselves out of poverty, the mission has targeted the most marginalized households. Through the provision of employment opportunities and the establishment of durable community and individual assets for livelihood security, women have been able to secure wage employment on a significant scale, albeit at low MGNREGS wages. This has led to over 54 percent of MGNREGS workers being women, as men transition to higher-paying jobs in the market.
Evaluation studies conducted by the Institute of Rural Management, Anand (2018) led by Pramod Kumar Singh, and the Stanford University team led by Anjini Kochar (2020), have confirmed a nearly 20 percent increase in household incomes among those covered by the mission, along with a maturing period of 6-8 years for newly-formed SHGs.
The MGNREGS started implementing a 60:40 unskilled labour to material ratio at the district level in 2016 and has extensively promoted individual beneficiary schemes that raise incomes like animal sheds, farm ponds, vermicomposting. Ninety days of work under the Pradhan Mantri Gramin Awas Yojana, which in over 70 per cent of cases is also in the woman’s name, has seen women get higher employment in MGNREGS. Over 260 crore person days of work have been generated each year and over half of them for women.
The wage rates under the MGNREGS are determined by the Consumer Price Index for Agricultural Labourers (CPI-AL). However, due to the outdated basket of goods and services used for CPI-AL, there was an overemphasis on food grains, which are provided for free under the Garib Kalyan Anna Yojana. Consequently, this led to a decrease in CPI-AL-based wages. As a result, women's participation is notably high in states like Kerala and Tamil Nadu, with over 50 percent participation nationally. Notably, the MGNREGS ensures equal wages for both men and women, and its wage rates serve as benchmarks in many states. Increasing MGNREGS wage rates, along with enhancing productivity, could serve as an effective strategy to ensure a dignified livelihood for the poor and elevate their skills. Efforts to enhance skilling initiatives should be expanded to reduce the large pool of unskilled wage earners.
Observations from the field indicate that initiatives like DAY-NRLM and MGNREGS play a crucial role in enhancing the female labor force participation rate. MGNREGS, far from being mere assistance, aids in constructing durable assets that enhance livelihood security. The collective social capital of women's groups has brought about significant transformation in rural areas.
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