Women’s economic empowerment as a means to alleviate poverty

India’s recent strides in poverty alleviation demonstrate the remarkable impact of inclusion and outcome-oriented policy and execution. In only nine years, India’s multidimensional poverty has decreased from 29.17% in 2013-14 to 11.28% in 2022-23, lifting 24.82 crore people above the poverty line. This progress is a critical component of the Indian Government's ambitious Viksit Bharat vision, which envisions a developed India by 2047.

Crucial to the successful attainment of this vision is the participation of women in the labour force. Their participation is not just beneficial but essential for India's economic empowerment and poverty eradication efforts. India's commitment to women-led development recognises the essential role they are expected to play in the goal of national development towards prosperity. By championing gender equality and enhancing women's participation across various sectors, India is setting a strong foundation for a fully developed nation by 2047.

The economic importance of women in poverty alleviation cannot be overstated. According to the World Bank, if India increases its women labour force participation from the current 25% to 50%, it could bring India closer to an 8% Gross Domestic Product (GDP) growth rate. Increased education levels among women and their enhanced representation in both organised and unorganised labour sectors are vital for fuelling India's growth. It is also believed that when a woman is provided access to education and labour, she leads the development of the whole family. While women face numerous societal barriers, the tide is gradually turning as more women engage in small-scale businesses, significantly contributing to household incomes.

This shift is supported by a wide range of robust government-led initiatives that empower women economically, providing them with the resources and support needed to establish and sustain these enterprises. For example, Self Help Groups (SHGs) and the JEEViKa Programme by the government of Bihar provide platforms for economic activities by improving access to markets and credit, enabling women to become entrepreneurs and community leaders. To further support economic empowerment, the government’s lakhpati didis and Women Entrepreneurship Fund Scheme focus on elevating women's financial status and fostering entrepreneurship. These efforts are complemented by programs like Mission Shakti and Mahila Shakti Kendras, which bolster women's safety, security, and community engagement, demonstrating India's holistic approach to empowering women across multiple facets of life.

This changing tide of empowering women to financially support their households has also witnessed the participation of the State Rural Livelihood Missions (SRLM). They specifically target women living in poverty to graduate towards becoming micro-entrepreneurs by running shops, practising animal rearing, and participating in agriculture, among others. It aims to create a supportive ecosystem for women to earn money and become independent by establishing a network of field cadres, mentors, and experts. It also institutionalises access to formal finance along with new financial products. This economic inclusion approach, including Graduation model, Cash++ finds support in global programs of a similar nature, recognized and recommended by World Bank (Partnerships for Economic Inclusion and the Consultative Group to Assist the Poor (CGAP), BRAC, Trickle Up and others. Nobel Laureates Esther Duflo and Abhijit Banerjee have also lent their weight to the efficacy of the graduation design through rigorous evidence. Exemplified by projects like the Economic Inclusion Programme (EIP) by The/Nudge Institute, the approach highlights how structured interventions can dramatically improve women's livelihoods. It seeks to elevate the poorest households above the poverty threshold through a sequence of targeted interventions. These interventions include the provision of livestock, shops, skills training, and financial support, such as temporary cash transfers for consumption.

Technology plays a transformative role in enhancing the accessibility and efficiency of such programmes. The adoption of systems like the Unified Payments Interface (UPI) and the significant increase in internet and mobile penetration among women have played a pivotal role in their success. Especially notable is the use of the SARATHI app by the SRLMs for administrative support, which has revolutionised the delivery of benefits and skills to women at the grassroots level. SARATHI streamlines the monitoring and evaluation of various programmes, ensuring that interventions are effective and reach their intended recipients efficiently. This technological advancement empowers women by providing them with more direct and timely access to essential services and opportunities.

To further enhance similar outcomes, collaborative action among stakeholders and incorporating a gender lens to investment strategies are crucial. Engaging women in decision-making processes affecting their lives and communities ensures that interventions are more effective and inclusive, helping to address systemic barriers that women face. Such an approach will thus foster a more equitable economic environment.

The journey of unlocking the role of women in the nation's economic growth and social development requires varied stakeholders from the public and private sectors to work together. It is time to create a conducive environment for players to invest in women’s growth. The return of investment of empowering women will accelerate the process of lifting families out of poverty and contribute to broader economic stability and growth. Our nation’s forward journey must put women at the forefront for eliminating multidimensional poverty to help India propel towards achieving its development goals.

This article is authored by Deepali Khanna, vice-president, Asia Regional Office, The Rockefeller Foundation and Atul Satija, founder and CEO, The/Nudge Institute.