Revamping the Care Economy: A Call to Boost Women’s Employment
According to a report by FICCI Ladies Organization (FLO), comprehensive changes are needed to strengthen India’s care economy. This includes more investments from both the public and private sectors through centrally sponsored programs. The care economy is expected to generate more than 11 million jobs by 2030, with 70% of them aimed at women. This would open up a significant economic opportunity.
Sudha Shivkumar, president of FLO, the women’s wing of the Federation of Indian Chamber of Commerce & Industry (FICCI), pointed out that the underappreciation and lack of recognition for care work, mostly carried out by women, have led to a market failure. This situation prevents skilled and talented women from fully utilizing their economic capabilities, resulting in a mismanagement of resources on a larger scale.
The care economy encompasses both paid and unpaid care work, essential for ensuring the welfare of society. It involves activities aimed at enhancing the overall well-being of various care-dependent groups, such as children, the elderly, the sick, disabled individuals, adolescents, and more. Currently, India’s expenditure on the care economy accounts for less than 1% of GDP, which is comparatively low when compared to other countries.
According to the FLO report, increasing direct public investments to 2% of GDP can not only reduce gender disparities in women’s participation in the workforce but also open up a new economic sector for developing economies. This would lead to greater economic output and job creation in the care services sector.
The report highlights findings from the International Labour Organisation indicating that boosting investments in the care services sector could create 475 million jobs worldwide by 2030. In the case of India, dedicating direct public investment equivalent to 2% of GDP has the potential to generate around 11 million jobs, with nearly 70% of them benefiting women.
The leading industry organization for women, in partnership with Nikore Associates, a youth-led think tank, previously organized four roundtable discussions on the care economy in Delhi, Kolkata, Bengaluru, and Mumbai.
As outlined in the paper on the care economy, the organization has stressed the importance of revising leave policies, subsidizing care services through investment in care infrastructure, and providing training to care workers, all while establishing institutional mechanisms to ensure quality standards.
According to the recommendations in the report, the Ministry of Labour and Employment can implement regulations that provide financial assistance to MSMEs and startups for maternity leave. This would involve revising parental leave policies and establishing a framework for care-related leave and flexible work arrangements. Additionally, market-based financing options for leave, such as parental leave insurance, could be introduced.
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