FICCI FLO Urges Increasing Women in Workforce to Boost GDP GROWTH

By: WE staff | Thursday, 28 March 2024

Most recently, FICCI, the large organization representing women in workforce, has pointed out the necessity of all round reforms that could assist more women to work in care sector. They forecast that these interventions could make a total of more than 11 million jobs, 70 % of which would be for women. FICCI says that unpaid home care work (mainly performed by women, in India) is essential for healthy families and efficient functioning of economies. On the one hand, it is usually not recognized, and therefore, excluded from the GDP, while at the same time; it is not included in the measure of economic growth.

Sudha Shivkumar, President of FICCI FLO, pointed out that the care work done by women was underpriced and ignored within the economy, leading to market failure. The failure to make it to where their capable and qualified ladies convert their capability into economic gains, hence considering the economy on macro level; this is a factor of the misallocation of resources. The report was released on the same day of FICCI FLO crossing a historic milestone of reckoning four decades since the beginning of its operations.

FICCI FLO members have commented in their report that by investing more in the care economy, it can not only bring an end to gender difference in women’s labor force due to the fact that the sector represents a new economic field.

The report showcases the results of International Labour Organisation which aim to lead to the creation of 475 million jobs worldwide by 2030 if resources are channelled towards the care services sector. As per the report, for India going ahead, it is 2 per cent of GDP to be invested in public directly which could lead the way to the creation of 11 million jobs and 70% of those jobs would go to women.

Together with Nikore Associates (a youth-led think tank), the Women's Organization of the Federation of Indian Chambers of Commerce and Industry organized four round tables on the care economy in Delhi, Kolkata, Bengaluru and Mumbai.

FICCI FLO highlighted the transformation of India's care sector and emphasized public and private investment.

The roadmap includes five key areas: including flexible leave policies, support for care services, investment in care infrastructure, training of care workers and Quality measures -Insurance.

Leave Policy: Evidence suggests that providing paid parental leave benefits child development, maternal health and economic well-being. Most G20 countries pay for maternity leave. In developed countries, paternity leave for men ranges from 2 to 30 days in the G20, and Europe tends towards gender-neutral paternity leave.

In India, the MoLE can provide both financial and political development opportunities to SMEs and start-ups regarding maternity leave and support for parental leave and flexible work options. However, it could even enter market financial policies, such as parental leave insurance. Instead, employers should make other provisions; such as gender-neutral carer's leave and flexible working options. Joint efforts of government agencies and organizations tend to reach these systems, especially the SME (small and medium-sized enterprises) movement.

Care subsidies: Internationally, subsidies for care services are usually included as tax credits for parents. and incentives for facilities and potential workers that provide low-cost childcare services. In India, subsidies and incentives for childcare services often come through government programs such as the Shakti Mission, which aim to ensure the safety, security and empowerment of women. These innovative systems could include ideas for financial support for child care, elder care, and the expansion of care services in mainly poor and disadvantaged areas. This can be done, for example, by supporting women-led self-help groups (SHGs) and NGOs providing such services, perhaps through tax incentives for women who run SMEs and cooperatives.

Investments in care infrastructure: Based on 2018 data, government spending on care was between 1 and 4.1 percent of GDP in the G20 alone. In India, pradhanmantri programs such as Saksham Anganwadi, POSHAN 2.0, Mission Shakti's Samarthya, Atal Vayo Abhyuday Yojana and the National Social Assistance Program aim to provide care infrastructure and access to services.

Alternatively, the budget allocation for these plans for 2023-24, which is only 0.73 percent of the total budget expenditure and no more, also seems too confusing. Therefore, it would be good to develop programs funded by the central sector. Indicators show the transfer of public funding for child care centers under the Palna scheme, the creation of a new scheme as a universal nursing home and the mobilization of investors in the private sector through public-private partnerships (PPP).

Care workers facilities: maintenance of India, the sector secures its position relying on a diverse workforce of Anganwadi Workers (AWWs), Additional Nurse Midwives (ANMs), Accredited Social Health Activists (ASHAs) and domestic workers out of an estimated 4.2 million and possibly more. 50 million. Despite their vital role, these workers, especially women, tend to work informally or receive low wages. MSDE and NSDC can be entrusted with extensive research to find out what skills are lacking in the country and design training courses accordingly.

Using the PMKVY 4.0 framework, intergovernmental agreements as well as business relationships, global best practices are integrated into nursing education projects in India. Institutional quality assurance mechanisms establishing quality nurses in public or private institutions requires oversight to maintain infrastructure and ensure that service standards are met. So that necessarily means setting minimum benchmarks and national, state and regional infrastructure standards that are flexible.