India needs to unlock the hidden potential of millions of women to become a global economic powerhouse by 2047

The historic labour reforms were ushered in the country with notification of the long-awaited labour codes on November 21. Covering wages, social security, industrial relations and occupational safety, health and working conditions for India’s 600 million workforce, the codes subsumed, streamlined and rationalised 29 labour laws, while introducing new provisions.

Included are special provisions related to employment of women on night shifts, i.e., before 6 am and after 7 pm, subject to their consent and the employer adhering to prescribed conditions related to their safety, health, working conditions. This important provision will not only unlock the untapped potential of the female workforce but will also empower women through increased participation in the economy.

For decades, Indian women were prohibited from working on night shifts under archaic provisions of The Factories Act, 1948, prompting many states to seek exemptions in recent years or to amend their respective laws. Studies indicate an improvement in female labour force participation in states where this provision has been amended.

This special provision for women has brought uniformity in labour law in the country. It places the responsibility of ensuring the safety of women working at night on employers. These may include transportation, well-lit premises, installation of CCTV cameras, apart from other safeguards.  

The provision enables greater flexibility in employment and working hours for women, while opening avenues for career progression. In continuous process-based manufacturing industries such as steel, chemicals, food processing, beverages, paper, pharmaceuticals, and oil-refining—with three shifts seven days a week—women, including engineers, were disadvantaged, often hindering their progression to senior supervisory or managerial positions.

The codes also mandate the setting up advisory boards that have women. For instance, one-third members of the Central Advisory Board for fixing or revising wages and enhancing employment opportunities must be women, as must all State Advisory Boards for Wages.

Similarly, a National Social Security Board for unorganised workers—tasked with recommending schemes for unorganised workers and advising on related matters—must have adequate representation of women. Parallel representation is also mandated in all State Unorganised Workers’ Social Security Advisory Boards.

Women workers will likewise be adequately represented in all grievance redressal committees to be formed in every industrial establishment employing 20 or more workers, ensuring their voices are included in resolution of individual grievances.

India has set a target of having 70% of women in the workforce by 2047 as part of the Viksit Bharat goal. Higher female labour force participation is expected to unlock significant growth potential.

India’s female labour force participation rate (LFPR) reached around 42% in 2023-24, up sharply from around 23% in 2017-18. Data also shows a rise in participation among more educated women. Amendments to the Maternity Benefit Act in 2017 introduced 26 weeks of paid maternity leave, alongside creche facilities at organisations that had 50 and more employees. These legal provisions continue in the codes, supporting the flexibility needed by the younger cohorts of working women.

With more self-employed women entering the workforce—supported by skilling and subsidised loan schemes—there is a growing need for building capacity of women entrepreneurs, with access to blended finance, among other requirements. In a rapidly expanding major economy, high growth sectors offer significant opportunities for both women entrepreneurs and workers. The World Economic Forum’s ‘Future of Jobs Report’ (2025) identifies big data specialists, software and application development, AI and machine learning, EV specialists, renewable energy engineers, agriculture, food processing, nursing, teaching, and counselling among the fastest-growing occupations. These are areas of skilling for enhanced female workforce participation.

However, the female youth not in employment, education and training (NEET) rate remains concerning. In the 15-29 years cohort, female NEET rate stands around 42%, compared with 8% for males. It is essential to bring these women into the labour force through skill training programmes, education, and employment. Establishing pathways for their integration in the labour force will unlock substantial potential for economic growth.

The interventions in the labour codes will need to be complemented by initiatives such as flexible degree-linked apprenticeship programmes, which have shown promise in enabling young women to ‘earn while they learn’—combining on-the-job training with online university education.

Experiences from WE Hub, the women-start-up incubator in Hyderabad, also demonstrate how women-led start-ups not only help to build “inclusive investment ecosystems” but also drive higher female labour participation.

Further, the codes’ provisions promoting gender equality at work, timely payment of wages, and payment of minimum wages for all forms of employment will empower women by placing a clear obligation on employers not to discriminate “in recruitment, wages and employment conditions for similar nature of work.”

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