Why Are Indian Factories Ignoring Women's Potential for Economic Growth?


Factories play a critical role in empowering women and driving economic development, particularly in countries like India. While there is a large untapped potential of female labor, social and economic barriers have kept many women out of formal, wage-paying jobs. Yet, the rise of manufacturing holds immense potential to change this scenario, as seen in other Asian economies.

In countries like Vietnam, China, and Thailand, women have been central to economic transformation through manufacturing. In Vietnam, for instance, over 68% of women over 15 work for some form of pay. However, in India, less than 33% of women are engaged in paid work that is officially counted, despite their significant contributions to household and agricultural labor.

The exclusion of women from formal manufacturing jobs in India stems from various factors. Social norms, gender discrimination, and fears of harassment keep women confined to their homes. Additionally, some factories avoid hiring women, especially married ones, due to their household responsibilities. A prime example is Foxconn, which has been criticized for avoiding married women in its Indian operations.

Despite these obstacles, women are eager to work if given opportunities. Poorvi, who works at a toy factory in Manesar, exemplifies this shift. She took up a factory job to support her family’s rising living costs. Factories like Smartivity, where nearly 40% of the workforce are women, offer hope for economic advancement.

However, despite their contributions, women’s labor is often under appreciated in the formal sector. Many factories and businesses overlook the potential of women workers, who are known for their focus, diligence, and productivity. Pulkit Singh, the chief of staff at Smartivity, noted that women are often more productive than men, taking fewer breaks and maintaining concentration for longer periods. Yet, such recognition is rare in the broader manufacturing landscape.

In India, economic growth has largely bypassed women. Manufacturing jobs, when available, are often monopolized by men, with women confined to low-paying positions that do not justify breaking societal norms. Still, the potential for progress remains, especially as geopolitical shifts push more manufacturing into India.

To fully harness this opportunity, India must create more jobs for women and challenge the social barriers that restrict their participation. By investing in women’s economic empowerment, factories can be the engines of upward mobility, lifting households out of poverty and driving sustainable economic growth.

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