The Union Budget 2025-26 emphasizes inclusive growth by prioritizing poverty eradication, quality education, skill development and women's economic participation. The gender budget has increased to 8.8% of the total budget, with ₹4.49 lakh crore allocated across 49 Ministries. Key employment and entrepreneurship schemes for women, such as Skill India, DAY-NRLM and PM Vishwakarma, have received increased funding. The Budget also aims to formalize gig workers, enhance AI-driven gender equity and support women-owned businesses. While it lays a strong foundation, sustained policy reforms and social change are essential for achieving 70% women’s participation in the economy by 2047.
The Union Budget 2025-26 focuses on inclusive growth. It aims to improve the lives of the poor, youth, farmers and women. The Finance Minister shared a vision for Viksit Bharat. The goal is zero poverty and quality education for all. Every worker should have skills and meaningful jobs. 70% of women should take part in economic activities. India should become the food basket of the world. The budget highlights women’s role in national development. This shows the government’s commitment to women-led growth.
A key highlight of this year’s Budget is the rise in the gender budget to 8.8% of the total Budget, up from 6.8% last year. This is the highest allocation in 20 years, with ₹4.49 lakh crore spread across 49 Ministries and departments. Additionally, 12 more central Ministries, including railways, ports, shipping, land resources, pharmaceuticals and food processing, have joined the gender budget. This shows a whole-of-government approach to gender inclusion.
India’s female labour force participation rate (FLFPR) has grown steadily. It reached 42% in 2023-24, up from 33% in 2021-22. This brings it closer to the global average of 47%, as per the International Labour Organisation. However, a 37-percentage point gap remains compared to men’s participation rate of 79%.
Reaching 70% women’s participation in economic activities by 2047 requires investment in skills, jobs, entrepreneurship, resources and social security. The Budget supports this by increasing funds for key schemes, including:
Funding for these schemes has grown from ₹1.19 lakh crore to ₹1.24 lakh crore, with 52% allocated to women and girls. New initiatives like the PM Dhan-Dhaanya Krishi Yojana, first-time entrepreneurs’ scheme, urban livelihood programs and Centres of Excellence for Make in India will further boost women’s workforce participation.
90% of working women in India are in the informal sector. The Budget plans to formalise gig workers by giving them identity cards and registering them on the e-Shram portal. This will help millions of women get a formal identity, social security and financial benefits.
The gig economy gives women financial independence and flexible work. But it often lacks job security, fair wages and maternity benefits. Strong labour laws and better social security are needed. Fair parental benefits across sectors will also help. These steps are key to ensuring women’s economic security.
The government is setting up a Centre of Excellence on AI for the education sector. It has also allocated ₹600 crore under the India AI Mission for the gender budget. This shows a strong focus on using AI for social good.
Investing in digital education, skill training and entrepreneurship for women is crucial. It will help ensure equal opportunities in the digital economy.
Financial institutions must recognize women’s role in agriculture, entrepreneurship and jobs. Easier rules, like delinking Kisan Credit Cards from land ownership, will help more women farmers get loans and improve their productivity.
According to the Udyam portal, 20.5% of MSMEs are women-owned, employing 27 million people. More finance for these businesses through collateral-free loans, new credit models and financial literacy programs can boost the economy. Reports by Bain & Company and Google say that 30 million more women-owned businesses could create 150-170 million jobs. This would meet 25% of India’s job needs by 2030.
The Union Budget 2025-26 sets a strong base for women’s economic participation. But achieving Viksit Bharat needs long-term policies, better infrastructure and social change.
Gender-responsive budgeting, strong social protection and an inclusive job market are key. These steps will empower women as leaders of growth. With this, India can reach the goal of 70% women in economic activities by 2047.
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PRACTICE QUESTION Q.How can gender-responsive budgeting promote women-led development in India? Elucidate. |
1. How does the Union Budget 2025-26 promote inclusive growth?
It focuses on poverty reduction, quality education, skill development and women’s economic participation to drive growth.
2. What is the gender budget allocation for 2025-26?
₹4.49 lakh crore (8.8% of total Budget), the highest in 20 years, covering 49 Ministries for gender inclusion.
3. How does the Budget support women's employment and entrepreneurship?
₹1.24 lakh crore allocated to women-focused schemes, boosting skills, jobs and entrepreneurship.
4. What measures are taken for women gig workers?
Formalization via e-Shram registration, ID cards and social security benefits for better job security.
5. How does AI contribute to gender equity in the Budget?
₹600 crore for AI-driven education, skill training and digital entrepreneurship under the India AI Mission.
6. How is the Budget supporting women in agriculture and MSMEs?
Easier credit access for women farmers and collateral-free loans to boost women-owned MSMEs.
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