Village women work under MGNREGA scheme at Jagannath Prasad village in Ganjam district, Odisha on Saturday.
| Photo Credit: PTI

There had been a consistent increase in Female Labour Force Participation Rate (FLFPR) over the past seven years driven largely by a rise in women entering workforce in rural India, the Economic Survey for 2024-25 said.

The survey, tabled in Parliament by Union Finance Minister Nirmala Sitharaman on Friday (January 31, 2025), said this increase in FLFPR was the primary driver behind overall improvement in the labour market indicators.

According to the Periodic Labour Force Survey (PLFS) 2023-24 quoted by the survey, there was an enhanced participation of women in economic activities across various categories, including rural and urban. “This increase in FLFPR can partly be attributed to better capturing female workers in unpaid work by the PLFS survey”, it said.

The PLFS was conducted in selected districts of Bihar, Jharkhand, Madhya Pradesh, and Uttar Pradesh in November 2024.

The FLFPR had increased over the past seven years from 23.3% in 2017-18 to 41.7% in 2023-24, the survey said.

Currently, 21 States have a FLFPR in the range of 30-40%. Seven States or Union Territories reported FLFPR greater than 40%, with Sikkim reporting the maximum rate of 56.9%. While in 2017-18, 20 States and Union Territories had FLFPR of less than 20%, in 2023-24 it is only three states.

Rural FLFPR, which was the primary driving force behind overall increase in women’s workforce participation, rose from 24.6% in 2017-18 to 47.6% in 2023-24.

The survey said that this rise could be attributed to women taking advantage of new opportunities brought about by various government initiatives.

The increase in rural women workforce participation can also be attributed to the skilling initiatives and improved access to credit for diversified livelihoods provided to women’s collectives under the Deendayal Antyodaya Yojana — National Rural Livelihood Mission (DAY-NRLM).

Further, the increased push of government towards encouraging entrepreneurship was also likely a key contributor. For example, as of October 31, 2024, a total number of 73,151 start-ups with at least one woman director were recognised under the Startup India Initiative. This represented nearly half of the 1,52,139 start-ups supported by the government.

The survey noted that building a strong ecosystem for women’s entrepreneurship required innovative solutions alongside government initiatives including focus on credit access, skill training, and formalisation.

Rural women entrepreneurs face additional challenges, including limited business skills, market access, and technology gaps, compounded by a lack of mentorship and networking. Streamlining support through credit linkages, sensitising bankers, and efficient delivery mechanisms is essential. Cost-effective strategies, such as raising awareness, providing skill training, and improving access to government benefits, can empower women entrepreneurs, it said.

Steady growth of exports — merchandise and services — in the first nine months of FY 25 to touch $ 602.6 billion indicates India’s resilience in the midst of global headwinds of economic and trade policy uncertainties, said the Economic Survey 2024-2025.

However, challenges remained due to elevated geo-political risks, high freight costs, and imposition of climate change related non tariff measures by the European Union in the form of the Carbon Border Adjustment Mechanism (CBAM) and European Union Deforestation Regulation (EUDR).

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The CBAM and EUDR were expected to affect $9.5 billion of India’s exports to the EU, which amounted to 9% of India’s exports to the world or 12.9% of India’s exports to the EU.

Further, there was an indication of preference for bilateral trade between countries with similar geopolitical stances, i.e., friend-shoring and nearshoring. There was also an increasing concentration of global trade to favour significant trade relationships.

“The evolving global trade dynamics, marked by gradual shifts towards greater protectionism, require assessing the situation and developing a forward-looking strategic trade road map. By adapting to these trends and leveraging its strengths, India can accelerate its growth and enhance its presence in global trade.”

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Proactive approach

To strengthen its competitiveness and further integrate into global supply chains, India should focus on reducing trade related costs and enhancing export facilitation to create a more vibrant export sector. This proactive approach will help India continue to thrive in an ever-changing global market, the Survey added.

Total imports during April-December 2024 reached $682.2 billion, registering a YoY growth of 6.9%. A more significant increase in overall imports compared to exports led to a rise in the overall trade deficit from $69.7 billion during April-December 2023 to $79.5 billion in the corresponding period of FY25.

Regarding short, medium and long-term measures, the Survey said that the evolving trade stance of a few major economies could affect key Indian export sectors such as chemicals, machinery, textiles, and electronics. It was essential to diversify the export markets, focus on increasing the market share, and position itself as a strategic partner in high-value sectors like biotechnology and semiconductors.

“Strategic technology partnerships would provide opportunities for enhanced cooperation in key areas such as space, semiconductors, quantum technologies and advanced telecommunications.”

The CBAM and EUDR posed twin challenges for countries such as India. There was a need to achieve higher levels of economic development and deal with climate change mitigation and adaptation, the Survey opined.

The demand for real estate is emerging not only in tier 1 and tier 2 cities but across the country. File
| Photo Credit: Reuters

Indian real estate market has performed well on strong demand from across the country driven by economic stability and creation of physical infrastructure like roads and metro networks, according to the Economic Survey.

Also read: Economic Survey 2024-25 updates, highlights

The document, which was tabled in Parliament on Friday (January 31, 2025), also highlighted that the real estate law RERA and Goods and Services Tax (GST) have brought many benefits to the real estate sector.

“India’s real estate market witnessed robust performance under office demand as well as residential sales driven by economic stability and positive market sentiment,” the Survey said.

The demand for real estate is emerging not only in tier 1 and tier 2 cities but across the country due to the expansion of metro networks, enhancement to road networks, and improvements in connectivity, it added.

Citing research reports of real estate consultants, the Survey noted that housing demand in India is expected to touch 93 million units by 2036.

“The residential real estate market scaled an 11-year high in sales volume in the first six months of 2024. During this period, total sale across top eight cities recorded an 11 per cent YoY growth,” the document said.

The Real Estate (Regulation and Development) Act, popularly known as RERA, has brought “numerous improvements in the real estate sector, including protection against fraud, increased transparency, timely project deliveries, and measures to prevent misuse of funds, among other benefits”, the Survey said.

After the enactment of the Real Estate Regulatory Authority, India ranked 31st out of 89 countries in the Global Real Estate Transparency Index in 2024, it said.

“GST has helped to simplify the taxation structure in real estate transactions by applying a single unified tax system across states. It has encouraged proper invoicing and documentation, thus reducing the scope for tax evasion,” the Survey said.

The document also noted that the rise of real estate investment trusts (REITs) further amplifies the positive trajectory of the commercial sector.

The government introduced REITs as an investment vehicle in commercial real estate, allowing investors to pool funds and invest in income-generating real estate. This helps increase commercial real estate market liquidity and attracts institutional investors.

“Implementation of online platforms for the submission and approval of building plans has led to a reduction in delays and brought more transparency to the process,” the Survey said.

The digital India land records modernisation programme aims to create a comprehensive, accessible, and transparent land record management system.

Giving an update on the RERA implementation, the Survey said that Rules under the Real Estate (Regulation & Development) Act, 2016 (RERA) have been notified in all States and Union Territories except Nagaland, with various regulatory authorities established.

As of January 6, 2025, about 1.38 lakh real estate projects and 95,987 real estate agents have been registered under the Real Estate Regulatory Authority. Moreover, 1.38 lakh complaints have been disposed of by the RERA across the country.

The Real Estate (Regulation and Development) Act, 2016, was passed by the Rajya Sabha on March 10, 2016, and by the Lok Sabha on March 15, 2016. The was Bill passed by Parliament was assented to by the President on March 25, 2016.

Certain Sections of RERA were notified with effect from May 1, 2016, and the remaining sections from May 1, 2017.