The Emerging

Women
Workforce of
India:
A Silent
Revolution in
the Making
Background 66

The Change Catalysts 66

Women in the Workforce 69

Implications and Imperatives 70

In Summary 72
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Background
With the economic, demographic and social changes India is witnessing, one of the most impactful
implications will be the large number of women in the workforce in the coming years.

About 30-35 per cent of the estimated 480 million jobs in the country are being performed by women,
though most of these are menial roles like labourers, housemaids, construction workers, etc. About 25 per
cent of women in India are part of the workforce (compared to 50 per cent of men) but only about 5 per
cent (7-10 million) work in an organised set-up and only 3 per cent of senior management positions are
occupied by women.

Though the proportion of women working in the organised set-up is small, in absolute terms this number
is bigger than the female workforce of several other nations. The picture is also rapidly changing. Indian
women have travelled the road from exploitation to empowerment and equality. And we are not talking of
a select few like Chanda Kochhar or Indra Nooyi; they have undoubtedly inspired a generation of Indian
women, but we are talking of those who may not be individually known for their achievements, and who
together form a force that can no longer be ignored. These women have catalysed changes in the lives of
other women and in society at large.

This document aims to understand the underlying change drivers that are making these women a
revolutionary force of the future and the implications of this change on consumer product companies,
service providers, marketers and retailers.

The Change Catalysts

There are several factors which have contributed to the numerical growth and evolution of working women
in India. Some of the key ones are demographic and social changes, increasing focus on education and
increasing work opportunities.

Demographic and Social Changes

Most of the demographic and social changes are a direct outcome of increasing education and awareness
levels of society at large and women in particular. This in turn promotes awareness and focus on
education.
• Greater acceptance and empowerment of females: The most important change in the attitude of Indians
is greater acceptance of the girl child. This is reflected in the increased sex ratio which has gone up from 927
females per 1000 males in 1991 to 933 females per 1000 males in 20011. This acceptance is fast moving
from merely having a daughter to giving her an upbringing at par with the male child, and to accepting
her as a colleague or manager at work. With higher education levels and greater exposure through media
and travel, women today are significantly more empowered than those of previous generations. Even
as homemakers they are influential in household decisions which were previously considered the man’s
domain, e.g., the purchase of electronics, financial investments, etc. A woman who contributes to the
family finances is even more empowered in decision making. According to a UNICEF report, ‘When a
woman brings income or assets into the household, she is more likely to be included in decisions on how
the resources will be distributed2’.
• Delayed family phase: There was a time when most parents feared that their daughters would not get
married if they did not do so by their early twenties. Given that most of the women were homemakers,
there was limited focus on higher education or career avenues for women and so getting married in the
early twenties was convenient for all. Today, this is changing. Many women now want to ‘complete’ their

1
Census of India, 2001,
2
Census State of the World’s Children, 2007

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education and be ‘financially independent’ before they marry. Parents also want their daughters to finish
higher education before marriage, which enables them to contribute financially to their families whenever
needed and also to be more aware and assertive of their rights in their new homes. As a result, the
marriage age has slowly risen from the early twenties to the mid and late twenties. This effect is more
pronounced in urban centres but visible at an all-India level too. As per the National Family Health Survey,
71 per cent of women with no education get married by the age of 18, while this drops drastically to 12
per cent for women with more than 10 years of education. At an all-India level this number has dropped
from 54 per cent in 1992-93 to 44 per cent in 2005-06 and will only drop further in the years to come3.
• Reduced child-bearing responsibilities: A few decades back, having 3-5 children was a common
occurrence even in urban households. However, more and more families are increasingly realising the
need to have fewer children so that their resources invested in terms of money, time and effort are less
divided, resulting in the ability to provide more to their children. This, clubbed with women getting more
empowered to control the number of children they want to have, has resulted in fertility rates in India going
down from 3.9 in 1995 to 2.8 in 20074. This has several implications:
»»It gives women more time free from home responsibilities which can help them take up jobs.
»»Having fewer children enables the families to provide a good education to all the children instead of
being forced to be selective (like the male child getting better education opportunities than female
child).
»»This has a direct impact on the financial well-being of the family, thereby increasing the discretionary
consumption.

The National Family Health Survey reveals that 83 per cent of married women with two children wanted no
more children in 2005-06 as compared to 60 per cent in 1992-93. This number climbs to more than 91 per
cent for women who have more than 10 years of education. At an overall level, the fertility rate for women
with more than 12 years of complete education is at 1.8 versus 3.6 for women with no education.

Increasing Focus on Education

Education has played a major role in bringing about most of the changes in the status of women in India.
The female literacy rate has increased tremendously over the last three decades. While in 1971 only 22
per cent of Indian women were literate, by 2001 the figure stood at 54 per cent. In fact, the female literacy
growth rate during the period 1991-2001 was 14.9 per cent compared to male literacy, which was 11.7 per
cent5.

In the last few decades, there has been a steady rise in the demand for universities and higher education
in India. Today more and more women are enrolling for higher education. As per the Ministry of Human
Resource Development, the enrolment figures in higher education are 4.6 million females compared to 7.1
million males6.The relative enrolment of women in higher education has increased by 10 per cent between
1991 and 2001 as compared to a mere 2 per cent in the previous decade as shown in Exhibit 1. This is
reflective of the steep change in the thinking and upbringing of Indian women.
Exhibit 1:
Enrolment of Women in Higher Education
Year 1950–51 1960–61 1970–71 1980–81 1990–91 2000–01
Absolute Women 43,245 170,078 429,814 748,663 1,438,061 3,309,381
% of Women in
11% 16% 22% 27% 29% 39%
Total Enrolment

Though Arts is the most popular stream with women, over the years the relative enrolment in Arts has grown
at a slower pace than in Science, Engineering and Technology and Commerce/ Management. This effect
is getting more pronounced with every passing day.

3
National Family Health Survey, 2005-06
4
National Family Health Survey, 2005-06
5
www.indiaedu.com
6
Selected Education Statistics 2004-05, MHRD 2007

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Though all the streams are seeing an increase in women enrolment, Engineering and Technology has
displayed the steepest growth at 15 per cent CAGR between 1995 and 2000 as shown in Exhibit 2.
Exhibit 2:
Enrolment of Women in Different Faculties
Faculty/Year 1995–96 2000–01 CAGR (’95–‘96-’00–‘01)
Women as a % of Women as a % of
Women (number) Women (number)
Total Enrolment Total Enrolment
Arts 1,283,811 41% 1,711,487 44% 5.9%
Science 452,423 37% 655,257 39% 7.7%
Medicine 75,877 40% 107,177 44% 7.2%
Agriculture 5,640 14% 8,769 17% 9.2%
Veterinary Sciences 2,367 18% 3,511 21% 8.2%
Engineering & Technology 62,059 16% 124,606 22% 15.0%
Commerce/Management 365,350 33% 545,712 37% 8.4%
Law 44,177 17% 67,196 20% 8.7%
Education 45,854 47% 55,907 51% 4.0%
Others 25,310 35% 28,499 38% 2.4%
Total 2,366,642 36% 3,325,927 39% 7.0%

Services Driven Supply Side

The rise of the services sector that forms 55 per cent of India’s GDP has given a tremendous boost to
female employment.

The IT/BPO sector has been a key driver of women’s employment in the last decade. According to Nasscom,
women accounted for close to 35 per cent (700,000) of the total workforce in the Indian IT/ BPO industry in
2008 and this is expected to increase to 45 per cent by 2010, translating into more than a million women
in the IT/BPO workforce. It is also estimated that women represent 13-15 per cent of the total managerial
workforce in this sector. Women are estimated to form 38 per cent of software programmers in this sector,
which is the largest for any demography. The biggest feature of this sector growth is its broad-based
nature, which provides aspirational opportunities for young graduates from small town and ‘middle-class’
India. This has given financial independence and consumption power to young women who otherwise
would have very limited avenues to achieve the same.

Another service sector which has employed a Exhibit 3:

significant number of women is the financial sector. Type of Activity of Usually Employed Urban Women
In 2005, about 420,000 women were employed in
the financial sector, which has risen from about 100
(All figures in %)
250,000 in 20017. This set is estimated to cross a 26.6
million in the next few years. Modern retail, even 80 3.5 35.9
1.5
though still very small in overall size, is doing the 9.1 1.3 1.4
60 3.1 Agriculture
same for women in an even more influential way 10.0
4.1
12.2
Manufacturing
3.8
since many modern retailers now reach over 300 26.7
Construction
40
Indian cities. 24.7
28.2 Trade, hotel & restaurants
20 Transport & communications
31.0
Sectors like aviation, travel and hospitality, grooming 24.7
18.1 Other services
and personal care, healthcare and education are a 0
few of the many which will offer career-oriented jobs 1983-84 1993-94 2004-05
to women in the next decade. Exhibit 3 demonstrates Source: Study by Chandrasekhar and Ghosh, ‘Women workers in urban India’, 2007
how more and more urban women are taking up jobs
in the services sector.

7
Study by Chandrasekhar and Ghosh, ‘Women workers in urban India’, 2007

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Women in the Workforce

The proportion of women in the workforce has been increasing for the past few decades. In 1981 it was 20
per cent, and it rose to 23 per cent in 1991, further rising to 26 per cent in 2001. It is estimated to be around
30-35 per cent at present, translating into 150-170 million women. Traditionally most women have been
working in the unorganised sector. There were very few women working in the organised sector as shown
in Exhibit 4. This number has been on the rise in the past decade from 3.7 million in 1991 to about 5 million
in 20018. This is estimated to be around 7-10 million today.

Exhibit 4:
Women in the Workforce

5mn =Organised 7-10mn =Organised

female workforce(4%) female workforce(4.6%)

127mn =Female 168mn =Female

working population(32%) working population(35%)

402mn =Working population(39%) 480mn =Working population(40%)

1029mn =Total Indian population 1200mn =Total Indian population

2001 2009
Source: Census of India, 2001 and Technopak analysis

The total organised workforce in India is 30-35 Exhibit 5:

million of which women comprise about 20-25 per Best Practices to Support Women at Work
cent. Indian women are increasingly seeking greater
participation in the organised workforce and equality
14% Surveys(Internal and external)
in career advancement and incentives. As a result of
demographic, social and education changes, more 27% Creche for kids parenting workshops
and more women are joining the workforce and they
are increasingly not just seeking ‘jobs’ but ‘careers’. 18% Women’s forum

23% Women’s lounge/recreation

Of the estimated 90 million or more new jobs
expected to be created in India in the next 5 years, 18% Round tables across groups/regular communication
almost 45 million are expected to be in services
alone. Of these 45 million new service jobs, as Health & wellness awareness program 50%
many as 20 million could be potentially taken up by
Anti-sexual harassment policy 68%
women. This number can be much higher if we factor
in employment across non-service sectors as well. 55% Transportation policy
Hence, there is a potential of trebling the current
market in the next 5 years. Flexible work schedules/ hours 68%

Corporate India has also become more aware of the Flexible leave policy 64%
importance and participation of women at all levels of
18% Team management
the organisation. At the same time, there is no denying
the fact that women still hold primary accountability 0 10 20 30 40 50 60 70 80
for their home and children and hence, their ideal Percentage of Respondents
workplaces are different than those of men. Source: Mercer- NASSCOM Gender Inclusivity Building Empowered Organisation
According to a survey by EMA Partners International, Study-2008

around 11 per cent of Indian companies have women

8
Ministry of Labour and Employment

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CEOs, while in the case of the Fortune 500 list from the US, the women CEOs account for 3 per cent of the
total consideration set. On a standalone basis this is far from ideal, given that this is heavily skewed towards
banking and financial services and a significant number of these women are from promoter families, but it
is a positive trend nonetheless.

Many companies are already trying to address the needs of women to attract and retain them. Infosys
Technologies set up a Women’s Inclusivity Network in 2003 to address the work–life balance and
developmental needs of women employees. Vaahini, a forum at Accenture India, was launched to address
women’s issues proactively by nurturing, sustaining and building the female workforce at all levels in
Accenture. Exhibit 5 illustrates some of the best practices to support women at work.

Implications and Imperatives

The women workforce of the future will be a more empowered segment than ever before-and these women
will also continue to hold the primary responsibility of their households. Most working women seek to save
time or effort in their daily routine but not at the cost of compromising the family’s health and upbringing.
This will result in a big shift in the consumption and shopping behaviour of this segment-paving the way
for several opportunities for consumer goods and service provider companies, marketers, retailers, etc. A
potential of generating an additional spend of US$ 5-10 billion by 2015 can be created by sheer increments
in spends of women (necessary and indulgent) because they are working. This is in addition to what they
would buy or consume if not working. Some companies have already taken proactive steps to address this
segment. Others will need to gear up for the same. A few opportunities which are emerging are:

Products & Services

Apparel and Accessories
‘Office wear’ clothing and accessories customised for the Indian woman, her sensibilities, tastes and
contours will be a significant segment in future. Also, given her busy schedule, apparel that is easy to
maintain and comfortable across Indian weather conditions will be important. A niche segment is the plus-
size apparel market which is about 8-10 per cent of the total market and is highly under-served today. As
more women get into the workforce, more innovation and variety in the ‘office wear’ part of this segment
will be in demand.

Beauty, Health and Fitness

Working women are time-starved and hence, multipurpose and easy-to-use products which reduce
complexity in their lives present a big opportunity. We have already seen some innovative products in
the markets-all-in-one sunscreen, anti-aging and moisturising cream designed to replace moisturiser and
speciality skin care products; shampoos containing hair-oil, etc.

Another important aspect for working women will be health. Almost all women want to be fit but family
and work tends to take priority. As per an ASSOCHAM survey, 68 per cent of working women are afflicted
with lifestyle diseases like obesity, depression, chronic backache, diabetes, hypertension, etc. while 77
per cent of the working women respondents have avoided visiting the doctor. This opens up a healthcare
opportunity to reach out to the working women by customising the delivery mechanism to their needs.

On the fitness front too, often women do not want a specialised training regime but simple facilitation to
keep their weight in check. This throws open a plethora of opportunities like neighbourhood/office complex
simple gyms for women, food supplements, effective but doable diet plans. We have already seen some
products in the market geared towards this effect e.g. shoes which assist in muscle toning, cornflakes
which help lose weight, etc.

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Food & Grocery

The kitchen will continue to remain the primary responsibility of most working women even if their spouses
assist them more for the same or they have household help. Though women seek convenience in kitchen,
they are unwilling to compromise on family health in any way. As a result, ready-to-cook, instant packaged
foods, and frozen foods that have equal nutritional balance but save time and effort will be a growing
segment.

Consumer Electronics
Multipurpose kitchen appliances will be a big opportunity, given the need for automation in the kitchen,
but kitchen space for such appliances is limited. The same would be applicable for IT and communication
solutions. Products launched in this domain include small-size laptops that can fit into a handbag, reducing
the need for working women to carry two separate bags.

Besides these, there are several other products/services which may be an opportunity in the making:
• Organised, trained domestic help and babysitters to take care of the household chores and children can
emerge as one of the major requirements.
• With major companies trying to make workplaces more women-friendly, crèches for children especially
in/near office complexes will be another opportunity.
• Given that more and more women in the workforce would like to be independent in their commuting,
driving schools focusing on women (e.g., with women trainers) can be an opportunity to look at. This also
will result in an opportunity for automobiles and auto-accessories targeted at these women.
• There is also an opportunity for easy, safe but affordable urban transportation services.

Opportunity in Channels
Not only will the increase in working women change what she consumes or buys, it will also have a significant
bearing on how and where she shops. Channel choice will be guided mostly by her convenience than by
any other factor:
• Internet: The Internet would become a key enabler because she is now internet-savvy and would prefer
the quickest and easiest route to complete routine work such as payment of bills, booking of tickets,
ordering grocery online, etc. She may also use it more frequently for lifestyle shopping.
• ‘At your doorstep’ products and services: Since working women are left with little time after office hours,
it will increasingly become important to serve them at home especially for essential services.
»»Eating out may be still occasion-based but working women would not mind ordering outside food more
often to save time and effort (as it would give them a break from routine cooking).
»»Home services like laundry, beauticians, etc. can also find a market.
• Large formats: The good old neighbourhood kirana who can deliver a 10-Rupee item in 10 minutes will
remain a channel for daily needs though she may indulge in monthly hypermarket trips to avoid the need
for frequent trips to market. There is an opportunity to study the shopping patterns of working women and
to identify ways of reaching out to her.

‘By-product’ Opportunity
Working women will also have an impact on the role of their spouses. Even though the ultimate accountability
for the household may rest with women, an increasing number of men will be assisting them in this work,
making it important for companies to develop products which are as easily handled by men as women. A
few recent product communications have focused on this segment, such as microwave ovens with built-in
recipe timers, higher front-loading washing machines, etc.

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Key Imperatives
A few imperatives to targeting working women are:
• Identify newer basis of segmentation: Marketers may need to re-segment their female customers to
target them better. The needs of working women can be different from those not working hence, one-size-
fits-all may actually work for no one in the coming years.
• Develop the right product and services: Once companies have their segmentation in place, they need
to understand and develop product and services after understanding each segment. Companies need
to accept that women have a complex life pattern and varying needs at each stage of life. They need
to avoid stereotypes-targeting women is not merely about making it pink or red, but identifying how the
product service fits in her life at different stages in life and hence, how she may want it to be. Also, she
may be unaware about certain products or technologies but that does not make her a stereotypical
‘dumb’ customer.
• Invest in right communication: Companies may often not need to make most products too differently, but to
communicate differently with different segments based on what those segments attach more importance
to. For example, while buying technology one segment may be looking for memory size and the other
may be looking at ease of use. It is also worthwhile to study which media different women segments
respond to better and target them through it, such as print versus internet versus mass media.

In Summary
Women in India are gaining visibility as we speak. They are taking leaps in all spheres - education, career,
or social empowerment. A lot of changes have happened over a few decades and are hence less palpable
to us. However, now that a critical mass has been achieved, we can expect these changes to occur faster
and in a more pronounced manner. It is imperative for consumer goods and services companies, marketers
and retailers to understand the evolving working women segment more closely and serve them better. The
rising women workforce is bound to change the ways companies design, make and market products.
Some of them have already begun focusing on this segment, while others will have to catch up soon.
Targeting this segment may be an opportunity for today but can become a necessity tomorrow.

Authors
Anil Rajpal, Vice President | anil.rajpal@technopak.com
Pragya Singh, Senior Consultant | pragya.singh@technopak.com
Ruby Jain, Associate Consultant | ruby.jain@technopak.com
Himani Agrawal, Associate Consultant | himani.agarwal@technopak.com

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