How a manufacturing boom could close the gender gap

Women's labour participation can be boosted by export-led hiring. We must put incentives in place

- ARTI AHUJA & POOJA SHARMA GOYAL

The Donald Trump administration's announcement of reciprocal tariffs on several American trading partners is causing a strategic shift in trade globally. As India gears up to take advantage of this by ramping up manufacturing, there lurks another opportunity. Many of the manufacturing sectors in focus, such as apparel, textiles, footwear, food products and electronics, have a higher than average representation of women in their workforce. In fact, an estimated 60% of the women employed in (both formal and informal) manufacturing are in these sectors.

This could be a critical moment for women's workforce participation and their economic empowerment in India, and presents an opportunity too precious to be lost. As things stand, Periodic Labour Force Survey data shows that India is at the cusp of the U-shaped curve for female employment popularized by Economics Nobel prize winner Claudia Goldin. Simply put, as India's income grows, more women should be entering the workforce, triggering a virtuous cycle of development. A gendered approach to manufacturing could provide the tipping point.

A brief look at the sectors first. The Indian textiles and apparel industry is projected to grow at a compounded 10% a year to reach $350 billion by 2030 even without the fillip that an export boost may bring. About half the women in formal manufacturing work in the textiles and apparel sector. This is an industry with a history of employing women and a demonstrated comfort with integrating them into the workforce, making it a natural focus area for scaling up female labour-intensive production.