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A recent study by non-profit organisation Women’s World Banking and Bank of Baroda has indicated the power of women, even at the bottom of the pyramid, as savers. It has been stated that by serving 10 crore low-income women, public sector banks in the country could attract about Rs 25,000 crore in deposits while empowering 40 crore low-income Indians. The potential is so huge that the study surveyed the saving behaviour of women and said there is a need to come up with innovative financial products to tap this power.

Interestingly, the report has also pointed out that women score on factors such as loyalty. They are also more active savers than males and have a better record in repayment of debt. These attributes originate from the nature of women. But the unfortunate part is that the role of women is not going up in the labour force participation rate. In fact, EPFO data suggest that during the pandemic more women have exited the formal employment sector than men. But with literacy rates and welfare projects targeting them in more and more states, the utilisation of women in the country’s workforce should have risen faster.

In fact, in 2017 a report of the World Bank stated explicitly that the long-cherished double-digit GDP growth rate in India is possible only when the participation of women goes up in the country. The World Bank noted that higher participation of women in the workforce would help in boosting household earnings, reducing poverty and creating conditions at home that would lead to higher spending on health and education needs of the children at home.

According to data, between 2011-12 and 2015-16 half of the fresh graduates in the country were women. In 2018-19 the share rose to 53%. However, according to the Centre for Monitoring Indian Economy, only 18.4% of women in the urban areas of 15 years or more were employed in 2018-19.

The Union government has taken some steps such as skilling programmes and subsidised loan schemes for women to encourage them to promote micro-entrepreneurs. But clearly, that’s far short of what is needed. As the economy gradually emerges from the crippling grip of the pandemic, the government should design interventions that raise the participation of women in the workforce.