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.
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