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Nari Shakti se Viksit Bharat: Women Leading India’s Economic Transformation Story

Why Women’s Economic Empowerment is Crucial

• Demographic Dividend: To fully utilize India’s large young population, it is essential to harness the potential of both male and female workforces.
• Multiplier Effect: Increasing female labor force participation (FLFP) leads to higher household incomes, poverty reduction, and GDP growth.
• UN SDGs Linkage: Empowering women is crucial for achieving SDG 5 (Gender Equality) and accelerates progress on other SDGs related to poverty, health, education, and economic growth.
• Global Context: Closing gender gaps in labor markets could boost global GDP by $5–6 trillion, as estimated by the World Bank.

Current Progress: Data from PLFS, EPFO, and Other Sources

• Workforce Participation Rate (WPR): Increased from 22% in 2017-18 to 40.3% in 2023-24, nearly doubling in six years. 
• Female Unemployment Rate (UR): Decreased from 5.6% in 2017-18 to 3.2% in 2023-24, indicating stronger job absorption. 
• Rural vs Urban Trends: Rural female employment rose by 96%, while urban female employment grew by 43%. 
• Education & Employability: Employability of female graduates improved from 42% in 2013 to 47.5% in 2024. WPR for postgraduate women increased from 34.5% in 2017-18 to 40% in 2023-24. 
• Formal Workforce Expansion: 1.56 crore women added to formal jobs (EPFO payroll), and 16.69 crore women registered on e-Shram (unorganized workers). 

Women-Led Development: Policy & Institutional Push

• From Welfare to Entrepreneurship: Shift in focus from “women development” to “women-led development” under the Viksit Bharat 2047 vision. 
• Gender Budgeting: Significant increase in gender budgeting from ₹0.85 lakh crore in 2013-14 to ₹4.49 lakh crore in 2025-26 (↑ 429%). 
• Schemes Supporting Women: 70 Central schemes and 400+ State-level schemes supporting women, including NRLM, Startup India, Mudra Yojana, SVANidhi, Drone Didi, and Lakhpati Didi. 

Women in Entrepreneurship & Business

• Startups: Nearly 50% of DPIIT-registered startups have a woman director. 
• Mudra Yojana: Women received 68% of total loans under Mudra Yojana. 
• PM SVANidhi: 44% of beneficiaries are women vendors. 
• MSMEs: Women-owned proprietary establishments increased from 17.4% in 2010-11 to 26.2% in 2023-24. Number of women-led MSMEs doubled from 1 crore in 2010-11 to 1.92 crore in 2023-24, generating 89 lakh jobs for women. 

Structural Drivers of Change

• Education & Skill Development: Improved female literacy and access to higher education.
• Digital & Financial Inclusion: Increased women account holders in Jan Dhan accounts and UPI adoption by women entrepreneurs.
• Social Norms & Aspirations: Rising cultural acceptance of women in business and non-traditional roles.
• Political Support: Enhanced political support through women-centric electoral promises and increased reservation in local bodies.

Challenges & Gaps

• Regional Disparities: Low female labor force participation rates in certain states, such as Bihar and Uttar Pradesh.
• Quality of Jobs: Increase in jobs in agriculture and informal services, with ongoing wage parity issues.
• Workplace Barriers: Safety concerns, lack of childcare facilities, and persistent gender stereotypes hindering women’s participation.
• STEM & Leadership Gaps: Underrepresentation of women in STEM fields, higher management positions, and policymaking roles.
• Unpaid Care Work: Continued disproportionate burden of household responsibilities on women.

Global Benchmarking

• India’s Female Labor Force Participation (FLFP) in 2023-24: Approximately 40%, showing a sharp rise but still below the global average of around 47%.
• Comparison with OECD Countries: Many OECD countries have FLFP rates above 55-60%.
• Historical Context: Countries like China and Bangladesh have historically higher female participation rates, but India is catching up, especially after reforms implemented post-2018.

Future Outlook: Towards Viksit Bharat 2047

• Target: Achieve 70% female workforce participation by 2047. 
• Pillars for Next Stage:Expanding formal sector absorption: Increase the number of women in formal jobs across various sectors. 
• Deepening women’s role in startups, tech, and green jobs: Encourage and support women entrepreneurs and professionals in emerging sectors. 
• Removing wage & leadership gaps: Address wage disparities and promote women into leadership positions. 
• Scaling financial inclusion beyond micro-credit: Expand financial inclusion initiatives to encompass a broader range of financial services for women. 
• Stronger care economy support: Enhance support for childcare and maternity benefits to facilitate women’s participation in the workforce. 

Significance for India’s Transformation

• Economic Impact: Achieving gender parity in the labor force could add $770 billion to India’s GDP by 2025, as estimated by McKinsey. 
• Social Impact: Reducing poverty, improving nutrition, education, and intergenerational mobility through increased female participation in the workforce. 
• Strategic Impact: Strengthening India’s global image as an inclusive democracy through women-led growth and empowerment. 

GeM Surpasses ₹15 Lakh Crore in Cumulative GMV Since Inception

What is GeM?

• Launched: August 9, 2016, by the Ministry of Commerce & Industry.
• Purpose: Unified online marketplace for government procurement of goods and services.
• Nature: Paperless, cashless, contactless platform using technology to remove intermediaries.
• Scale (2025):
  • 70,000+ buyer organizations.
  • Over 65 lakh sellers/service providers.
  • 11,000+ product categories and 320+ service categories.

Importance of Public Procurement in India

• Public procurement constitutes 20–25% of India’s GDP as per the World Bank.
• Traditionally, public procurement faced challenges such as corruption, cartelization, delays, and a lack of vendor diversity.
• The Government e-Marketplace (GeM) addresses these issues by providing:
  • Real-time price discovery and reverse e-auctioning.
  • Direct contracts between the government and vendors, eliminating middlemen.
  • Integrated payment systems with the Public Financial Management System (PFMS).

Milestone Achievement – ₹15 Lakh Crore GMV (2025)

• Gross Merchandise Value (GMV): Refers to the cumulative value of goods and services sold on the platform.
• Achievement: GeM reached an impressive GMV of ₹15 lakh crore within 9 years, from 2016 to 2025.
• Annual GMV acceleration:
  • ₹1 lakh crore in 2019–20.
  • ₹2.5 lakh crore in 2021–22.
  • ₹4 lakh crore in 2022–23.
  • ₹6.2 lakh crore in 2023–24.

Key Features Driving Success

• Inclusivity:
  • Approximately 57% of registered sellers are Micro and Small Enterprises (MSEs).
  • Over 12 lakh women entrepreneurs are registered on the platform.
  • More than 1.5 lakh Scheduled Caste (SC) and Scheduled Tribe (ST) entrepreneurs have been onboarded.
• Ease of Doing Business: The platform offers end-to-end online registration, e-bidding, and 100% digital payments, making the process seamless.
• Transparency: GeM ensures transparency through price comparison, contract history, and the absence of human discretion in bidding processes.
• Innovation: The platform utilizes AI-driven analytics for demand forecasting and is piloting blockchain technology for enhanced contract security.
• Integration: GeM is integrated with databases such as Aadhaar, Udyam, GSTN, and PAN for seamless vendor validation.

Socio-Economic Impact

• Savings for Government: GeM is estimated to provide cost reductions of 9–10% compared to traditional procurement methods, as reported by the Comptroller and Auditor General (CAG).
• Support for MSEs: Over 50% of the total order value on GeM is allocated to Micro and Small Enterprises (MSEs).
• Women & Marginalized Vendors:
  • 12% of procurement is earmarked for women-led and SC/ST enterprises.
  • Self-Help Groups (SHGs) in states like Uttar Pradesh, Bihar, and Madhya Pradesh sell handicrafts, textiles, and agricultural products through the platform.
• Employment & Innovation: GeM has strengthened rural entrepreneurship by connecting SHGs to broader markets. Startups also benefit from direct market access through the integration of Startup India and GeM initiatives.

Policy & Governance Significance

• Digital India Alignment: GeM’s end-to-end online procurement process supports the broader goals of e-Governance and Digital India.
• Atmanirbhar Bharat Push: The platform prioritizes suppliers from the Make in India initiative, with over 75% of orders being domestic.
• Fiscal Accountability: GeM’s integration with the Public Financial Management System (PFMS) helps reduce payment delays and leakages, enhancing fiscal accountability.
• Viksit Bharat Vision (2047): GeM aims to contribute to a fully digital, transparent, and inclusive procurement ecosystem by 2047.

Challenges Ahead

• Regional disparities: There is a concentration of sellers in states like Maharashtra, Gujarat, and Karnataka, while northeastern states and rural areas have a weaker presence.
• Digital Divide: Limited access to the internet and digital literacy among SHGs and rural MSEs poses a challenge for broader participation.
• Quality Control: Ensuring inclusivity without compromising on quality standards remains a critical challenge.
• Cybersecurity Risks: The platform faces risks related to fraud, phishing, and the presence of fake vendors.
• Training Gap: Many local bodies, Gram Panchayats, and small vendors lack the necessary training for digital procurement processes.

Way Forward

• Expand Onboarding: Focus on onboarding Self-Help Groups (SHGs), women entrepreneurs, and rural entrepreneurs to enhance inclusivity.
• Deepen Tech Use: Utilize AI for fraud detection and predictive procurement, and explore Blockchain technology for contract integrity and security.
• Green Procurement: Prioritize eco-friendly goods and services to align with the Net Zero 2070 goal.
• Global Outreach: Position GeM as a model for Digital Public Infrastructure (DPI) for developing nations, similar to the success of the Unified Payments Interface (UPI).
• Capacity Building: Implement training programs for government officials and rural vendors to enhance digital procurement capabilities and ensure effective utilization of the GeM platform.

Strategic Significance

• Economic: GeM streamlines procurement processes worth over ₹15 lakh crore, freeing up fiscal space for welfare schemes and initiatives.
• Social: The platform empowers women, SHGs, and SC/ST enterprises by integrating them into government business opportunities, fostering social equity and inclusion.
• Governance: GeM reduces corruption and leakages in procurement processes, enhancing trust in state systems and promoting good governance practices.
• Global Image: Alongside initiatives like UPI, CoWIN, and Aadhaar, GeM strengthens India’s profile in Digital Public Infrastructure (DPI), showcasing the country’s capabilities in digital governance and public service delivery.