India tops S Asia in women labour participation

India's female labour force participation rate has increased at a faster pace among South Asian countries between 2019 and 2023.

The country recorded an increase of 23.4%, according to an analysis of data from the World Bank. Bhutan follows with a growth of 6.3%, followed by Pakistan (4.7%), Maldives (1.7%), Nepal (1.1%) and Bangladesh (0.3%). Sri Lanka, on the other hand, experienced a decline of 5.9%.

The labour force participation rate in South Asia increased from 27.1% in 2019 to 31.6% in 2023. "It is well below the 54 percent average in emerging market and developing economies," said Franziska Ohnsorge, World Bank Chief Economist for South Asia.

Except for Bhutan, female labour force participation rate in 2023 was 5-25 percentage points below countries with similar development levels, according to the World Bank's October South Asia Development Update, Women, Jobs and Growth.

In South Asia, women's employment rate declines by 12 percentage points on average after marriage.

Education plays a crucial role, according to the report, as women with more than secondary schooling are less impacted by the marriage penalty in Bangladesh, India, and Nepal. Additionally, a husband's higher education can alleviate the marriage penalty for women in Bangladesh and India.

"Raising female labour force participation rates in the region to those of men would increase regional GDP (gross domestic product) by up to 51 percent," said Martin Raiser, World Bank Vice President for South Asia.

In India, closing the gender gap in employment will lead to an increase of 23.42% in output, according to the report.