Budgeting for Gender-Inclusive ‘Viksit Bharat’

Context

• The Union Budget 2025-26 underscores the government’s commitment to inclusive growth, with a special focus on the poor, youth, farmers, and women.
• This year’s budget aims to advance India’s development under the vision of Viksit Bharat, emphasising goals such as poverty eradication, universal education, workforce skilling, and increased female workforce participation.
• Therefore, it is important to critically examine the key gender-related provisions in the budget, their potential impact, and the challenges that remain in achieving equitable economic participation for women in India.

Key Gender Related Provisions in the Union Budget

• Increased Gender Budget Allocation
  • One of the most significant advancements in this year’s budget is the rise in gender budget allocation, which now stands at 8.8% of the total budget, up from 6.8% the previous year.
  • The allocation of ₹4.49 lakh crore across 49 ministries reflects a holistic, government-wide approach to gender mainstreaming.
  • The expansion of gender budgeting into non-traditional sectors such as railways, shipping, and food processing signifies a shift towards integrating gender perspectives in areas previously overlooked.
• Recognition of Rising FLFPR
  • The budget also recognises the rising Female Labour Force Participation Rate (FLFPR), which increased from 33% in 2021-22 to 42% in 2023-24.
  • While this is a positive trend, a considerable gap remains between male (79%) and female workforce participation.
  • Achieving the ambitious target of 70% women’s participation in economic activities by 2047 will require sustained investments in employment, entrepreneurship, social security, and access to productive resources.
  • The budget addresses these areas through increased allocations to key initiatives, including the Skill India Programme, Deendayal Antyodaya Yojana-National Rural Livelihoods Mission (DAY-NRLM), and PM Vishwakarma.
  • Notably, 52% of the combined ₹1.24 lakh crore allocated for these programs is directed towards women and girls, reinforcing the government’s intent to enhance economic opportunities for women.
• Gig Economy and Social Security for Women Workers
  • A major highlight of the budget is the focus on gig and informal sector workers, who comprise 90% of India’s working women.
  • The decision to issue identity cards and register gig workers on the e-Shram portal is a progressive move that could enable millions of women to access social security entitlements and financial inclusion benefits.
  • Despite the gig economy offering women flexibility and financial independence, it is fraught with challenges such as low wages, job insecurity, and lack of maternity benefits.
  • Ensuring labour rights through comprehensive social security measures, including progressive parental entitlements across both informal and formal sectors, will be crucial for safeguarding women’s economic security.
  • Moreover, the establishment of a Centre of Excellence on Artificial Intelligence (AI) for education, alongside a dedicated ₹600 crore gender budget under the India AI Mission, demonstrates the government’s intent to harness technology for gender inclusivity.
  • Investing in digital education and skill development for women will be vital in bridging the gender gap in high-growth technological fields.
• Acknowledgment of Women Entrepreneurs
  • Women-owned businesses make up 20.5% of MSMEs in India, employing approximately 27 million people.
  • The budget acknowledges the potential of women entrepreneurs by advocating for collateral-free loans, alternative credit scoring models, and targeted financial literacy programs.
  • Reports suggest that creating 30 million additional women-owned businesses could generate up to 170 million jobs, over 25% of the employment needed for India’s working-age population by 2030.
  • Thus, policies that enhance financial access and business support for women entrepreneurs are key to economic growth.

Remaining Challenges and the Road Ahead

• While the budget lays a strong foundation for gender-inclusive development, achieving Viksit Bharat’s ambitious targets will require more than just financial allocations.
• Effective policy implementation, sustained infrastructure development, and social norm transformation are essential.
• Persistent challenges such as gender pay gaps, occupational segregation, and cultural barriers limiting women’s workforce participation must be addressed through comprehensive labour reforms and gender-sensitive workplace policies.
• Moreover, gender-responsive budgeting must go beyond allocations and focus on measurable outcomes.
• The use of gender-disaggregated data to track access and utilisation of government schemes can ensure that investments translate into tangible improvements in women’s economic participation.

Conclusion

• The Union Budget 2025-26 marks a significant step towards fostering women’s economic empowerment through increased gender-focused allocations, targeted skill development, and financial inclusion measures.
• However, the realisation of Viksit Bharat requires sustained commitment beyond budgetary provisions.
• By ensuring gender-responsive governance, strengthening social protections, and promoting equal labour market participation, India can position women as key drivers of economic growth.

Q1. What is the percentage of the total budget allocated to the gender budget in 2025-26?
Ans. 8.8% of the total budget, up from 6.8% the previous year.

Q2. How does the budget aim to support women in the gig economy?
Ans. By issuing identity cards, registering them on the e-Shram portal, and improving access to social security benefits.

Q3. What percentage of Skill India Programme and related schemes’ funds are allocated to women?
Ans. Approximately 52% of the total ₹1.24 lakh crore allocation.

Q4. How does the budget support women farmers in accessing credit?
Ans. By proposing to delink Kisan Credit Cards from land ownership, enabling more women to avail loans

Q5.  What is the long-term goal for women’s workforce participation by 2047?
Ans. To achieve 70% women’s participation in economic activities. 

Source:The Hindu