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Female workers taking a break at an auto parts factory in Karnataka, India.
EconomyAI Analysis

The 7.4% Secret: Why India Female Manufacturing Labor is the Next Big Bet

2 min readSource

India targets 7.4% growth by mobilizing its female manufacturing labor force. Explore how labor reforms and supply chain shifts are bringing millions of women into factories.

India's economic future is female. While two-thirds of the country's women remain outside the formal workforce, a massive shift is underway. As India eyes a 7.4% GDP growth for 2025-26, the push to bring women into factory floors has become the nation's strategic trump card.

Unlocking India Female Manufacturing Labor Through Reform

Sadhana's journey from a conservative household to a garment factory supplying Gap and H&M isn't just a personal victory—it's an economic blueprint. According to Nikkei Asia, labor reforms are making it easier for manufacturers to hire women, potentially transforming India into a global export hub that rivals China.

Women workers at Lumax Industries signal a shift in the Karnataka auto parts cluster.
India projects 7.4% growth, defying global trade headwinds.

Why Gender Parity Matters for Investors

For institutional investors, India's low female labor participation is actually a massive 'untapped alpha.' Bringing women into the formal sector doesn't just increase production; it drives household consumption. Companies like Honda and Suzuki are already seeing record exports from their Indian hubs, fueled by a diversifying workforce.

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