Union Budget 2024 | Survey calls for strategic reforms in care as India faces ‘Motherhood Penalty'

Strategic reforms are needed in order to build a solid care economy structure in India, as the country faces the challenge of 'motherhood penalty' with a drop in female labour force participation around childbearing years, noted the Economic Survey 2023-24 which was tabled on Monday.

The survey estimated that direct public investment equivalent to 2 per cent of the GDP has the potential to generate 11 million jobs in the sector, nearly 70 per cent of which will go to women. 

Statistics from the Survey highlight the rising care needs of India which is expected to expand significantly in the next 25 years fueled by a demographic shift towards an ageing population. At least 64.7 crore persons would need care by 2050 in India. 

However, this impact of childbearing and childcare bears huge cost on women’s career, termed the ‘motherhood penalty’, reflected in a drop in the female labour participation rate (FLFPR). This disproportionate burden of care on women results in low female participation, contributing to as much as a 20 per cent drop for an additional hour of caregiving per day.

Investing in an appropriate care economy could shed off some burden and boost the labour force participation of women. It has proved to be effective in South American countries like Brazil, Mexico, reflected in a study by Barros.

A study, Mobile Creches NGO performed in Gujarat, Jharkhand, Odisha and Karnataka, showed a positive impact of quality creche facilities on women’s well-being, income, child well-being, and relationships with family members. To support this, the Economic Survey also relied upon a study by SEWA childcare centres that resulted in beneficiary women working more hours, leading to higher incomes and savings owing to help by creches. 

Additionally, the Economic Survey highlighted how artificial intelligence (AI) is casting a huge pall of uncertainty regarding its impact on workers across all skill levels. These will create barriers and hurdles to sustain high growth rates for India in the coming years and decades. 

“Hiring in the IT sector has slowed significantly in the last two years. In such a case, deploying capital-intensive and energy-intensive AI is probably one of the last things a growing, lower-middle-income economy needs,” the Survey added. 

It pointed out that it is in the corporate sector’s self interest to take its responsibility to create jobs seriously. This should obviously be complemented by professionals with the right attitude and skills. 

Union Budget 2024 | Making a record for any Finance Minister, Nirmala Sitharaman will be presenting her 7th Union Budget on July 23, 2024 under the Modi 3.0 government. While inflation has burnt a hole in the pockets of 'aam janata', will this Budget spell relief for Indians? Track the latest coverage, live news, in-depth opinions, and analysis only on Deccan Herald. Also follow us on WhatsApp, LinkedIn, X, Facebook, YouTube, and Instagram.