Promoting Women's Economic Participation in India

Despite rapid economic growth, gender
disparities in women's economic participation have
remained deep and persistent in India. What explains these
gender disparities? Is it poor infrastructure, limited
education, or the composition of the labor force and
industries? Or is it deficiencies in social and business
networks and a low share of incumbent female entrepreneurs?
This note analyzes the spatial determinants of female
entrepreneurship in India in the manufacturing and services
sectors. It finds that good infrastructure and education
predict higher female entry shares. Gender networks also
influence women's economic participation, as strong
agglomeration economies exist in both manufacturing and
services. A higher female ownership among incumbent
businesses within a district-industry predicts a greater
share of subsequent female entrepreneurs. Moreover, higher
female ownership of local businesses in related industries
(similar labor needs, input-output markets) predicts greater
relative female entry rates. Unlocking female empowerment
and entrepreneurship is a direct path to shared prosperity
and a more dynamic and sustainable growth.