This article is a part of the Invest with Women: Strategies to Accelerate Progress series.

There is an enormous gap between men and women’s participation in the formal workforce of India—A 2023 report pegged the rural and urban female labor force participation rates (FLFPRs) at 36.6% and 23.8%, respectively, while the corresponding male participation rates stood at 78.2% and 74.7%. It is critical to recognize that investing for women is not just about putting in more dollars but also about where the dollars are directed, to ensure that the outcomes are aligned with better social benefits for women.  

What is labor force participation rate (LFPR)? 

Labor force participation rate is the proportion of the population aged 15 and older that is economically active: all people who supply labor for the production of goods and services during a specified period. 

Good FLFPR has potential benefits such as alleviation of poverty, reduced infant mortality rate and maternal mortality rate, increased dignity and decision-making power for women through financial independence, and achievement of SDG 1 (No Poverty), SDG 5 (Gender Equality), SDG 8 (Decent Work and Economic Growth), and SDG 10 (Reduced inequalities). 

India’s pioneering Skill Impact Bond (SIB) is one such exemplary model. It is an innovative financing mechanism for skilling and employment, with the goal of benefitting 50,000 young Indians over four years, 60% of whom would be women. It utilizes private sector resources and knowledge and redirects its emphasis from traditional inputs such as training and certification to tangible outcomes such as securing and maintaining employment opportunities for India’s youth. The program is committed to providing training to place women in non-traditional roles, thereby reducing gender pay parity. 

“India’s Skill Impact Bond, which I have been working closely with, is an exemplary model where we have been able to crowd in more capital through blended finance mechanisms to get more women placed and retained in jobs in a sustainable manner… It is important to ensure that the effort is holistic, and this includes engaging women’s families in supporting them in their journey, which ultimately drives ‘good’ FLFPR.” 

Shruti Goyal
Associate Partner, Dalberg Advisors 

Contact: shruti.goyal@dalberg.com