Report by AMFi-CRISIL: 98% of Urban Women involved in Household Financial Decisions

Why is it in the news?

AMFi-CRISIL’s ‘Mutual Growth’ report highlights the increasing financial decision-making autonomy and labor force participation rate (LFPR) of women in India.

Key Highlights of the Report

Female LFPR rose to 41.5% in October 2023, compared to 24.6% five years ago.
47% of women are involved in making financial decisions independently.
Autonomy in financial decision-making depends on income source, age, and stage of affluence.

Significance of Increasing Role of Women in Financial Decision-Making

Enhances women’s empowerment, addresses gender disparities, and reduces domestic violence and conflicts.
Leads to greater allocation of resources towards children’s education and healthcare.
Promotes financial literacy and inclusion, resulting in better financial planning and wealth management.
Increases financial intermediation and market depth, fostering entrepreneurship and innovation.

Socio-cultural Challenges

Deep-rooted patriarchy and gender stereotypes hinder women’s financial autonomy.
Lower participation in the formal workforce and gender pay gap contribute to economic challenges.
Women face the ‘dual-burden’ of unpaid and unrecognized domestic and care work.

Steps Taken for Women’s Financial Autonomy

· PM Jan Dhan Yojana, Beti Bachao Beti Padhao, and Business Correspondent (BC) Sakhi program aim to promote financial inclusion among women.

· NABARD promotes Self-Help Groups (SHGs) to encourage collective credit decisions and microfinance among women.

· Schemes like Stand-up India and MUDRA Yojana provide support for women entrepreneurs.

AMIGOS IAS