Unlocking the power of India’s 470-million women

The Scale of Invisibility

India’s 650,000 villages are home to about 440 million women, with 300 million of them in the working-age group (15–65). Among them, 140 million are rural homemakers, nearly half of all working-age rural women, engaged in unpaid domestic duties. But invisibility doesn’t stop there.

Of the 110 million rural women who are part of the labour force, around 38 million perform unpaid labour on family farms or businesses. In addition, over 80 million rural women collect firewood, forage for food, or manage cattle feed. Many also care for livestock, contributing income to households, yet this work is often dismissed as an extension of domestic duties.

In urban India, of 230 million women, only 42 million are part of the labour force, compared to 110 million rural women. Roughly 82 million urban women are fully occupied with unpaid domestic work.

Combining rural and urban figures, we find that 168 million women are engaged solely in domestic duties, 75 million perform both unpaid and paid labour, and 42 million are engaged in other forms of unpaid labour. This means about 60% of Indian women in the working-age group contribute economically without formal recognition or compensation.

Informal Work and Occupational Clustering

Women’s work is heavily clustered in informal, low-paid, or unpaid sectors. The gender gap in formal salaried jobs is stark: only 12 million rural and 20 million urban women are in salaried employment.

In rural areas, 35% of women are unpaid workers on family farms or businesses—most of which are officially owned by male relatives. In contrast, only 10% of urban women work in family-run enterprises.

Occupational segregation is sharp. Rural women work mainly in agriculture (64 million), livestock (14 million), and small-scale retail or craft. Urban women dominate in domestic work (5.4 million), shop operations (4 million), teaching (3.4 million), and textiles (3 million). Most of these jobs offer little skill development or economic mobility.

Financial Exclusion in Different Forms

Despite their vital economic contributions, women are underserved by the formal financial sector. Most financial products are designed around the archetype of a “median male with a smartphone”—overlooking the needs of women with complex, informal financial lives.

Take the 14 million rural women in livestock management. Although they care for animals and generate income through dairy, commercial transactions are typically handled by men. This leaves women with little access to financial records or banking services, further entrenching their economic invisibility.

Similarly, in cities, 2 million women shop owners run small retail outlets but face obstacles in accessing credit due to a lack of financial history or collateral. They typically earn ₹8,000–₹10,000 per month, but formal credit remains out of reach.

Compare them with retail workers—many of whom earn more but 90% lack contracts and 85% receive no benefits such as paid leave or insurance. Their financial needs are entirely different but equally underserved.

The Innovation Imperative

India’s women workforce is far from homogenous. Their financial needs vary widely across occupations, income levels, geographies, and social contexts.

For example, women in agriculture may need digital wage access, micro-credit, or crop insurance, while those in construction or mining require flexible income protection and occupational hazard coverage. Urban professionals such as clerks might benefit more from micro-investment tools or upskilling loans.

This diversity calls for a radical rethink in financial product design. Fintechs have a huge opportunity: create contextual, occupation-specific financial tools tailored for women. Moving away from one-size-fits-all models is no longer optional—it’s a commercial and developmental imperative.

The Path Forward

Unlocking women’s economic potential starts with recognition. From homemakers managing complex rural households to informal workers and urban entrepreneurs, women contribute significantly to India’s economy—just not in ways that fit neatly into existing metrics.

If India is to become a $5 trillion economy, we must bring these invisible engines of growth into the fold. The 470 million women of Bharat are not a single customer segment waiting passively to be served. They are active economic agents with distinct challenges and needs.

We must design policies, financial products, and support systems that are responsive to this diversity. By recognising their contributions and building for their realities, we don’t just uplift women—we unlock the next wave of India’s economic growth.

(Supriya Sharma- Partner and Lead Research, IIMA Ventures.)

Views are personal, and do not represent the stance of this publication.