Women Workforce Growth Driving Startup Boom: Implications for HR and Beyond
Key Points:
- Significant Increase in Women Workforce:
- Workforce participation by women in India rose from 22% in 2017-18 to 37% in 2024, said Yamal Vyas, Chairman of the Fourth State Finance Commission of Gujarat, during a session on “India’s Journey to $5 Trillion Economy” at the Ahmedabad Management Association (AMA).
- This increase is particularly prominent in low-skill manufacturing sectors like garments, household products, and firecrackers.
- Impact on Startups and Economy:
- Women’s participation has created financial stability in families, allowing male members to take entrepreneurial risks, which Vyas cited as a contributing factor to the surge in startups.
- He emphasized the growing interconnection between workforce trends and India’s economic goals.
- Regional and Sectoral Insights:
- Tamil Nadu’s Manufacturing Success: Policies fostering investments in electronics, automobiles, and footwear position the state as a model for other regions, including Gujarat.
- Banking Sector Growth: Financial services are expected to consolidate, with Vyas predicting the dominance of five private and five public banks in the near future.
- Challenges to $5 Trillion Goal:
- Bureaucracy, labor laws, and land regulations remain barriers to economic growth, though mindset shifts and policy reforms are showing promise.
What This Means for HR:
- Talent Pipeline Development: The growing presence of women in the workforce highlights the need for companies to foster gender-diverse workplaces and develop leadership pipelines for women.
- Startup Support: HR teams can play a strategic role in supporting entrepreneurial ecosystems by providing robust talent management frameworks, especially in high-risk ventures.
- Workforce Policies: Manufacturing sectors with rising female participation may need to rethink workplace inclusivity, safety measures, and training programs tailored to their needs.
India’s journey toward a $5 trillion economy is tied closely to workforce participation and entrepreneurial growth, offering significant challenges and opportunities for HR leaders to drive transformation.
Source – For more, visit Indian Express.
