Care Economy
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- The Care Economy includes paid and unpaid caregiving activities. It includes both direct care, such as feeding a baby, and indirect care, such as cooking and cleaning.
- Developing this sector can promote economic growth, reduce gender disparities in unpaid work, and increase female labor force participation.
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Significance
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- It improves individual well-being, productivity, and community health.
- It is critical for India because it serves children, the elderly, and people with disabilities.
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Challenges faced by women
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- Women in India spend more time on unpaid domestic and care work than men. They spend an average of 5.6 hours per day on unpaid tasks, compared to 30 minutes for men.
- This limits women's ability to participate in paid employment, education, and leisure activities, contributing to the low female labor force participation rate of 25%.
- The imbalance leads to "time poverty," in which women with paid jobs bear the greatest burden, they frequently struggle to balance work and caregiving responsibilities, resulting in significant personal and professional sacrifices.
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How does unpaid care work contribute to India's GDP?
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- Unpaid care work performed by women is estimated to account for 15% to 17% of India's GDP.
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- This economic value is calculated by multiplying the amount of time spent on unpaid care activities by wage rates; either minimum or weighted average.
- Despite its significant economic value, the contribution of women is frequently neglected in traditional GDP.
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Impact of investing in the Care Economy
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- Investing in the Care Economy has the potential to significantly boost economic output and create new jobs.
- According to a report released by Ficci Ladies Organisation (FLO), increasing public investment in care services by 2% of GDP has the potential to create 11 million jobs, with women accounting for about 70%.
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- This would help to close gender gaps in labor force participation and boost overall economic growth.
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Role of Private Sector
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- The private sector can play an important role by investing in care infrastructure through Public-Private Partnerships (PPPs), providing flexible work arrangements.
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- Government can offer corporate tax breaks to companies that support care services.
- Private investment can help to expand quality care facilities and create new business opportunities in the care sector.
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Recommendations to Improve the Care Economy in India
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- Implement maternity, paternity, and gender-neutral parental leave to help working parents.
- Provide financial incentives to self-help groups (SHGs) and community organizations to provide child and elder care.
- Increase public and private investment in care infrastructure, such as daycare centers and nursing homes.
- Create training programs to improve the skills and employability of care workers.
- Develop standards and monitoring mechanisms to ensure that care services are of high quality.
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International practices
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- India could learn from Sweden's parental leave policy, which provides equal leave for both parents to encourage shared caregiving. Australian government's childcare and eldercare subsidies could be used to provide financial assistance to families.
- International examples show how comprehensive care policies improve female workforce participation and economic development.
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Way Forward
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- As the demand for care services grows due to aging populations, higher life expectancy, and increased female workforce participation, investments in the care sector can promote gender equality, reduce the burden of unpaid care on women, and create dignified employment opportunities.
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