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.