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The care economy: Bridging the gender gap

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Recognising unpaid domestic work is not just a social imperative but a multi-billion dollar economic opportunity for India’s future

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The concept

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​The care economy encompasses the paid and unpaid labour required to provide for the physical, emotional and developmental needs of others, including children, the elderly and the ill. In India, this sector remains largely invisible and informal. According to the Time Use Survey, Indian women spend nearly five hours more per day on unpaid care work than men, leading to a significant "time poverty" that hinders their participation in the formal workforce.

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Why it matters

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Economic multiplier: The ILO estimates that investing in the care economy could create nearly 11 million jobs in India by 2030, many of which would be filled by women.

Boosting FLFPR: India’s Female Labour Force Participation Rate (FLFPR) remains lower than global peers. Formalising the care sector (crèches, elder-care homes) allows women to transition from "unpaid" domestic roles to "paid" professional ones.

Demographic transition: With a rapidly ageing population (the 'Silver Economy' link), the demand for professional geriatric care is set to skyrocket, requiring a skilled and regulated care workforce.

Key challenges

Cultural stigma: The deep-seated social norm that caregiving is exclusively a "female duty" prevents the redistribution of domestic responsibilities.

Lack of infrastructure: Inadequate public spending on childcare and social security for domestic workers keeps the sector fragmented and underpaid.

Way forward

​India needs a National Care Policy that focuses on the "5Rs": Recognising, Reducing and Redistributing unpaid care work, while Rewarding and Representing care workers. Expanding the Anganwadi system into full-day "Care Hubs" can serve as a primary step.

Final outlook

​Investing in the care economy is “gender-responsive macroeconomics”. By shifting from a "male-breadwinner" model to a "dual-earner, dual-career" model, India can unlock a massive source of untapped human capital and move closer to its goal of an inclusive, developed nation.

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