Care economy's potential to boost women's workforce participation and economic growth in Asia

The Hindu - Opinion · 28 Aug 2026 · 2 min read
Prelims · Economy Mains · GS3 Economy High relevance

The care economy, encompassing childcare, eldercare, and other domestic responsibilities, is emerging as a critical economic growth strategy in Asia by enabling greater women's workforce participation and addressing demographic challenges.

Key points

Care economy refers to paid and unpaid work related to caregiving for children, elderly, and dependents, which currently remains undervalued in national accounts despite its economic significance.

Women undertake most unpaid care work in Asia, leading to reduced workforce participation, with economic costs including lost talent, lower family incomes, and reduced tax revenues for governments.

[GS1-Society] Asia's demographic transformation - smaller families, urbanisation, ageing populations - increases care demands while reducing traditional family support structures.

Commercial care ecosystem in developing Asia remains underdeveloped due to financing challenges, regulatory complexities, and lack of skilled workforce, creating barriers for entrepreneurs.

[GS3-Economy] Investment in care services can generate multiple returns: financial returns for enterprises, employment for care workers, and greater economic participation for women.

The AVPN Global Conference in New Delhi highlights the role of impact investing in building care markets, with blended finance models to attract commercial capital.

India faces a critical need for affordable care services due to rising female workforce aspirations, urbanisation, and growing elderly population, requiring both public and private sector solutions.

Way Forward: Governments should establish care service standards and financing mechanisms while encouraging private investment through tax incentives. Skill development programs for care workers and regulatory simplification for care enterprises are essential to build a sustainable care ecosystem.

Key terms

Care economy

The care economy encompasses all paid and unpaid labor involved in caregiving for children, elderly, and dependents. For UPSC, it's significant as it intersects with women's workforce participation (SDG 5), social protection systems (GS2), and inclusive economic growth (GS3), requiring policy attention in India's demographic transition.

AVPN Global Conference

The Asian Venture Philanthropy Network's annual gathering of impact investors and social sector leaders. Relevant for UPSC as it demonstrates emerging models of blended finance and public-private partnerships for social infrastructure development in Asia.

Unpaid care work

Domestic and caregiving activities performed without monetary compensation, predominantly by women. Important for UPSC as it relates to gender inequality (GS1), women's economic empowerment (GS2), and measurement challenges in GDP calculation (GS3).

Impact investing

Investments made with the intention to generate positive social impact alongside financial returns. Significant for UPSC as it represents an innovative financing mechanism for social sector development, aligned with India's SDG commitments and inclusive growth agenda.