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Care Economy
Context:
The Economic Survey 2023-24 highlights that India’s Female Labour Force Participation Rate (FLFPR) is 37% (2022-23), below the global average of 47.8%.
- Despite an increase from 23.3% in 2017-18, 37.5% of the female labour force participation consists of unpaid work in household enterprises.
- Women’s low economic participation is largely due to their disproportionate burden of care responsibilities, including childcare, elder care, and other domestic work.
About Care Economy:
- According to the ILO Care at Work Report, care work encompasses a wide range of activities and relationships that meet the physical, psychological, and emotional needs of individuals of all ages. This work can be categorised into compensated (paid) and unpaid/underpaid labour,
- This includes both paid and unpaid work, such as childcare, elder care, and domestic responsibilities, which are predominantly performed by women.
- Job Creation Potential: The ILO estimates that investment in India’s care economy can potentially produce 11 million jobs.
- This investment is crucial for enhancing female labour force participation and achieving Sustainable Development Goal (SDG) 8, which promotes sustained, inclusive, and sustainable economic growth.
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According to the UN Economist Network ,The Purple Economy, also sometimes referred to as the care economy, obtains its name from the colour adopted by many feminist movements.
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Need for a Care Economy Strategy in India:
- Changing Demographic Landscape
- Between 2020-2050, India’s demographic shift will increase the need for elderly care alongside childcare By 2050, the elderly population is expected to rise to 20.8%, necessitating strategic investments in care infrastructure.
- Gender Gaps in Unpaid Domestic and Care Work
- India faces wide gender gaps in unpaid domestic and care work. Women aged 15-59 spend 5.6 hours daily on unpaid work, while men spend only 30 minutes.
- According to Economic Survey 2023-24 This disparity contributes to “time poverty“, severely limiting women’s ability to participate in paid employment or pursue skill development opportunities.
- Economic Value of Unpaid Care Work
- Women’s unpaid care work in India is estimated to be worth 15%-17% of GDP.
- The ILO estimates that women’s unpaid care work contributes approximately $10 trillion annually to global economic growth, accounting for about 13% of the world’s GDP.
Case studies in Economic Survey 2023-24
- The World Economic Forum’s report on the ‘Future of Care Economy’ highlights three perspectives.
- Seeing the care economy as an engine for increasing economic productivity.
- From a business perspective organisations can relate to the care economy as investors and employers.
- Human rights perspective that focuses on gender equality and disability inclusion.
Steps taken by the Indian Government to Address care economy:
- Strengthening Support Services through Anganwadi Networks
- State governments are focusing on enhancing support services through the existing Anganwadi network.
- In the 2024-25 Budget, there is a 3% increase in the Ministry of Women and Child Development’s budget, specifically for the integrated child care and nutrition program (Saksham Anganwadi and Poshan 2.0 scheme).
- Expansion of Community-Based Creches
- Several States are implementing community-based creches for children, facilitated through partnerships between government and non-government organisations.
- According to the Maternity Benefit Act,Amendment Act 2017, every establishment having 50 or more employees is required to provide a crèche facility for their employees’ children.
- Skilling and Certification of Care Workers
- The Domestic Workers Sector Skill Council, now renamed the Home Management and Caregivers Sector Skill Council, along with the Healthcare Sector Skill Council and the National Skill Development Corporation, plays a key role in the skilling and certification of various cadres of care workers.
- Policy Frameworks and Strategies
- Integrated Child Development Services (ICDS):This program provides food, preschool education, and healthcare to children under six and their mothers, reaching approximately 10.5 crore beneficiaries as of 2022.
- Investment in Care Infrastructure
- Palna Scheme under Mission Shakti:Under the scheme, the Government aims to establish 17000 Crèches, enabling working mothers to participate in economic activities.
- Nursing Colleges
- The establishment of 157 new nursing colleges will produce around 15,700 nursing graduates annually, aiming to strengthen healthcare services across the country.
- Recognition and Support for Care Workers
Corporate Initiatives in Care Economy:
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- Legal Protections for Domestic Workers:Legal protections have been extended to approximately 4 million domestic workers under the Sexual Harassment of Women at Workplace Act and minimum wage laws.All-India Survey on Domestic Workers: This survey, conducted by the Labour Bureau, aims to gather critical data on the status and socio-economic characteristics of domestic workers to inform policy decisions.
- Public-Private Partnerships
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- The G20 Bali Care Economy Dialogue, 2023 Delhi Declaration, under India’s G20 Presidency, urges G20 countries to invest in accessible social protection and affordable care infrastructure and for Collaboration with the Private Sector.
- Focus on Gender Equality
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- Women Leadership Initiatives:The Confederation of Indian Industry (CII) has established a Centre for Women Leadership to address gender gaps in care work, promoting women’s well-being and financial independence.
- Long-term Care Programs
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- National Program for Health Care for the Elderly (NPHCE):This program has established 1,000 senior citizen care centres across the country to improve the quality of life for older adults.
- Disability Act
- The Rights of Persons with Disabilities Act, 2016 aims to promote the rights and welfare of persons with disabilities, ensuring their access to care services and support systems.
- Accessible India Campaign
- Launched in 2015, the Accessible India Campaign (Sugamya Bharat Abhiyan) is a nationwide flagship campaign for achieving universal accessibility for persons with disabilities.