The Prime Minister’s Financial Admonitory Board (EAC) recently reported a significant increase in female labor force participation in India over the last five years, driven by government initiatives. The Female Labor Force Participation Rate (LFPR) grew notably in rural areas from 2017-18 to 2022-23, according to research by Dr. Shamika Ravi and Dr. Mudit Kapoor. Programs such as ‘Mudra’ loans and the ‘Drone Didi’ initiative have particularly benefited rural women.
The study, based on data from the Periodic Labor Force Survey (PLFS), revealed a national rural LFPR increase from 24.6% to 41.5%, while urban LFPR rose modestly from 20.4% to 25.4%. Significant regional disparities were observed, with states like Jharkhand and Bihar showing remarkable growth. The research highlighted that married women in rural areas exhibited higher participation rates compared to single women. Furthermore, the study found that marital status, age, and the presence of young children substantially affect LFPR, with married men’s participation consistently higher than women’s. Overall, while female LFPR has improved nationally, rural areas have outpaced urban regions in growth rates.