Pushing gender equality can deliver a sizeable additional economic growth and could add Rs 46 lakh crore ($700 billion) to India's GDP in 2025, a McKinsey report says.
According to the new report by McKinsey Global Institute (MGI) titled The Power of Parity: Advancing Women's Equality in India', bridging the gender gap will have a huge economic impact and the boost could translate into 1.4 per cent per year incremental GDP growth for India.
"Advancing gender equality can deliver sizeable additional economic growth and broad-based prosperity to the world -- nowhere more so than in India," the report said, adding that delivering that impact will require tackling significant gender gaps in society and driving a national agenda for change that involves all stakeholders.
About 70 per cent of the increase would come from raising India's female labour-force participation rate to 41 per cent in 2025, from 31 per cent at present. This would bring 68 million more women into the economy over this period.
"Bridging the gender gap will have a huge economic impact and could add Rs 46 lakh crore ($700 billion) to India's GDP in 2025," it added.
"India's share of women's contribution to GDP is at 17 per cent, much lower than the global average of 37 per cent, and the lowest among all 10 regions in the world analysed by MGI," McKinsey & Company India Director Rajat Gupta said.
Interestingly, 26 countries in McKinsey's dataset of 95 have a lower per capita GDP and human development index than India. However, many of these have higher levels of gender parity.
According to the report, in a full-potential scenario in which women play an identical role in labour markets as men, India would gain most with $2.9 trillion likely to be added to annual GDP in 2025, while globally, as much as USD 28 trillion, or 26 per cent, could be added to global annual GDP.
As per McKinsey's 'best-in-region' scenario, in which all countries match the progress towards gender parity of the fastest-improving country in their region, the world could add USD 12 trillion to GDP in 2025.
The research also highlighted the unequal sharing of household responsibilities between men and women.
Globally, women spend roughly three times the amount of time spent by men on unpaid work while in India, women perform 10 times the amount of unpaid care work than men.
"If this unpaid work could be valued and compensated, it would contribute USD 0.3 trillion (Rs 20 lakh crore) to India's economic output," the report noted.