Rethinking women’s work in informal and gig economies

Rethinking Women’s Work in the Informal and Gig Economies

Rethinking women s work in informal – India’s Female Labour Force Participation Rate has seen a significant rise, increasing from 23.3% in 2017–18 to 41.7% by 2023–24. This figure often dominates discussions on women’s economic advancement, yet it masks a more complex reality. While more women are entering the workforce, many remain in precarious roles with limited safeguards, inconsistent schedules, and few opportunities for upward mobility.

The Informal Economy and Social Protection Gaps

According to the International Labour Organization (ILO), informal employment accounts for roughly 90% of all jobs in India, a proportion that is growing. For women, the situation is particularly challenging. The ILO’s *World Social Protection Report 2024–26* highlights that only 26% of Indian women are covered by at least one social protection measure, compared to 39% for men. This disparity is not random—it is deeply rooted in the structure of work women are encouraged to take on.

Flexibility and the Feminisation of Casual Work

The gig economy exemplifies this tension. By FY 2024–25, India’s gig workforce expanded to 12 million, growing at a rate of 17% annually. While digital platforms are often praised for offering women independent earning opportunities, the reality is more nuanced. Women now represent nearly 28% of gig workers, but the informal and adaptable nature of such jobs has led to what researchers term the *feminisation of casual work*. This trend sees women disproportionately assigned to roles with lower pay and less security, turning flexibility into a tool for risk absorption.

Financial Literacy and Resilience

Behind the issue of income stability lies a critical financial literacy gap. Without the skills to manage unpredictable earnings, access credit, or save effectively, women face severe vulnerability. A NITI Aayog study found that 90% of gig workers lack savings and are at high risk during crises. For women in both informal employment and financially underserved areas, resilience is not automatic—it requires intentional support and systemic change.

Collective Models and Agency

Collective initiatives, such as Self-Help Groups (SHGs), demonstrate a path forward. By 2024, over 91.75 lakh SHGs reached 10 crore rural households, providing ₹51,697 crore in formal credit alone during FY 2024–25. Women’s access to credit through SHG membership surged from 9% to 71%, and their involvement in household decisions rose from 18% to 62%. These shifts go beyond mere financial inclusion—they signify a growing sense of agency.

Market Infrastructure and Systemic Integration

However, even thriving SHGs face a common barrier: the lack of market connections. A woman skilled in food processing or handicrafts still needs buyers, supply chains, and fair pricing mechanisms to thrive. The government’s Lakhpati Didi program, aiming to empower three crore women earning ₹1 lakh annually, is a promising step. Yet, success depends on aligning policy with robust market infrastructure, especially in rural and semi-urban regions where production and commerce remain disconnected.

Toward Sustainable Economic Security

Women tend to leave the gig and informal sectors when conditions improve, revealing the distress-driven nature of their participation. This underscores the need to transform not just numbers, but the environment in which women work. The focus must shift from mere inclusion to creating conditions that transition work from precarious to protected, from supplementary to sustainable.

The Economic Survey 2024 estimates that unpaid care work by women contributes 3.1% to India’s GDP. Yet, this labor rarely translates into economic gains or ownership. India measures what women produce in the market but has yet to fully account for the invisible labor they sustain. Until both dimensions are addressed, participation rates may climb, but genuine economic security will remain elusive for most.

India’s ambition for women’s livelihoods is evident, but the next challenge is integration. Connecting skills to markets, designing credit systems for irregular incomes, and ensuring social protection that follows workers, not just employers, are essential steps. Only then can women’s work become a foundation for lasting progress.