Care Economy Gains Policy Focus: Key to Women-Led Development and Inclusive Growth

Indian Express - Opinion · 9 Mar 2026 · 2 min read
Prelims · Social issues Mains · GS2 Social justice High relevance

The Indian government is prioritizing the care economy through policy interventions and budget allocations, recognizing its role in enabling women's workforce participation and inclusive growth, with the Female Labour Force Participation Rate rising from 23.3% (2017-18) to 41.7% (2023-24).

Key points

Care Economy refers to unpaid or underpaid labor predominantly performed by women, including childcare, eldercare, and domestic work, which sustains households but remains largely unmeasured in economic metrics.

The Gender Budget has crossed Rs 5 lakh crore for the first time in 2026-27, reflecting a policy shift towards women-led development under PM Modi's leadership.

Initiatives like skilling 1.5 lakh caregivers and upgrading anganwadi centres aim to formalize and professionalize care work, linking it to employment generation and social security.

[GS3-Economy] The rise in Female Labour Force Participation Rate to 41.7% (2023-24) from 23.3% (2017-18) underscores the economic potential of investing in care infrastructure to unlock women's productivity.

Legal reforms such as the Code on Social Security and Occupational Safety, Health and Working Conditions Code mandate crèche facilities, addressing workplace barriers for women.

[GS1-Society] Rapid urbanization and nuclear families are eroding traditional care support systems, necessitating state intervention to provide affordable childcare and eldercare services.

The care economy intersects with health and nutrition systems, as seen in the convergence of anganwadi upgrades with early childhood care initiatives.

This connects to GS2-Governance as it highlights the need for inter-ministerial coordination (Women & Child Development, Health, Labour) to implement holistic care policies.

Way Forward: India should institutionalize care work through a national care policy, expand public provisioning of care services via PPP models, and integrate care metrics into GDP calculations to reflect its economic value.

Key terms

Care Economy

The sector encompassing unpaid/underpaid domestic and care work (childcare, eldercare, household chores) predominantly performed by women. For UPSC, it's critical as it intersects with women's empowerment (GS1), labor economics (GS3), and social justice (GS2), with implications for measuring GDP and designing inclusive policies.

Gender Budgeting

A policy tool that analyzes budgetary allocations through a gender lens to address disparities. In India, it's implemented since 2005-06 and now exceeds Rs 5 lakh crore, relevant for GS2 (governance) and GS3 (inclusive growth), demonstrating fiscal prioritization of gender equity.

Female Labour Force Participation Rate (FLFPR)

The percentage of working-age women (15-59) engaged in economic activities. India's FLFPR rose from 23.3% to 41.7% (2017-24), a key indicator for GS3 (employment) and GS2 (social justice), reflecting policy effectiveness in bridging gender gaps.

Anganwadi Centres

Grassroots institutions under ICDS providing nutrition, preschool education, and healthcare. Their upgrade for early childhood care connects GS2 (governance) and GS1 (society), serving as nodal points for converging health, nutrition, and women's empowerment schemes.