Despite decades of legal reforms aimed at advancing gender equality, women worldwide still face systemic barriers to economic opportunities. There remains a significant gap between the rights enshrined in law and the reality for women seeking full participation in employment and entrepreneurship.

The World Bank's Women, Business and the Law 2024 report highlights this 'implementation gap,' showing that while regulations suggest women should have 64% of the legal rights granted to men, only 40% of the necessary policies and systems are actually in place to support these rights.

"The laws may seem promising on paper, but in practice, significant gaps undermine their effectiveness," says report manager Tea Trumbic. "The most critical shortcomings are in ensuring women's physical safety and access to affordable childcare—two essential factors for achieving true economic empowerment.

The India story

Women’s economic participation in India is significantly lower than men’s.  In 2023, the LFPR for women in India was 37%, significantly lower than the global average of 47% and drastically below the 76.8% rate for men, as per ILO. The country has enacted laws prohibiting discrimination, sexual harassment, and child marriage while granting wives inheritance rights. Yet women's labour force participation remains dismally low.

A new report from The Nudge Institute underscores the urgency of this, revealing that India needs to add 400 million women to its workforce to support its $30 trillion economy. To meet its ambitious economic goals by 2047, India must double the participation of women in the workforce.

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"On paper, India does better than the South Asian average in terms of legal protections for women's economic inclusion," notes Trumbic. "But glaring gaps remain, especially around pay equity, dismissal protections for pregnant workers, paternity leave, and affordable childcare options."

While 98 countries mandate equal pay for equal work, India does not - leaving women vulnerable to wage discrimination. Nor does India have transparency measures or enforcement mechanisms to close gender pay gaps where they exist.

Safety - A foundational issue: Worldwide, the report's findings on women's safety are particularly alarming, with an average implementation score of just 36 out of 100. "If women don't feel safe at home, at work, or in public spaces, it's nearly impossible for them to fully participate in the workforce," says Trumbic.

In India, while sexual harassment is prohibited at work, there are no such protections in public spaces like transportation. This lack of personal security deters many women from even attempting to join the job market.

Childcare - the make-or-break factor: Another major obstacle is the lack of affordable, high-quality childcare options. Unpaid caregiving responsibilities keep many women trapped in low-paying informal work or out of the labour force altogether.  

"When childcare is easier for families to access, we see women's employment rates go up dramatically," explains Trumbic. "But too few countries have developed comprehensive childcare systems addressing availability, cost, and quality standards."

India lacks a regulatory framework governing childcare providers, or any public subsidies to make services more affordable for working parents. This policy gap imposes a tremendous burden that crowds women out of the workforce.

Reasons for optimism

While the report highlights formidable challenges, there are also bright spots. Sierra Leone, Togo, Jordan, Uzbekistan and Malaysia were the top reformers in 2023, enacting new laws around pay, parental leave, and workplace protections for women.  

"Governments are realising that investing in women is a win for economies and societies," says Trumbic. "With sustained momentum to match words with action, we can absolutely close these implementation gaps."

The stakes for women's economic empowerment extend far beyond questions of fairness and equity. Increasing women's workforce participation could boost global GDP by over 20% - essentially doubling the current rate of economic growth.

As the world emerges from the pandemic into an era of persistently sluggish growth, there has never been a more compelling case to tear down obstacles impeding women's full participation. With both moral and economic imperatives aligned, the time is now to translate gender equality principles into reality.

Check out the detailed interview for deeper insights into the global state of women's equality.