India’s Care Economy: Examples, Challenges

India’s care economy is an essential, yet often underappreciated sector that plays a vital role in the socio-economic landscape of the country. It encompasses both paid and unpaid care work, ranging from childcare and eldercare to healthcare and domestic labor. The majority of this care work, particularly unpaid care work, is performed by women, a factor that has deep implications for gender equality, labor market participation, and overall economic growth. Despite its crucial role, India’s care economy remains underfunded and undervalued, leaving significant room for improvement in policy, infrastructure, and societal recognition. This article delves into the multifaceted aspects of India’s care economy, exploring its challenges, opportunities, and the way forward.

1. Understanding the Care Economy

The care economy refers to all activities related to the provision of care services, whether for children, the elderly, the sick, or others in need. It includes both paid jobs, like those of healthcare workers, domestic help, and teachers, as well as unpaid work typically performed within households, such as cooking, cleaning, and caregiving. In India, women perform 84% of all unpaid care work, compared to only 16% by men, highlighting a significant gender imbalance in the allocation of these duties.

While much of this work is unpaid and informal, the formal care economy — which includes jobs in health, education, and social services — is a growing sector with immense potential for job creation and economic development. The expansion of formal care services could not only provide employment but also alleviate the burden of unpaid care work that disproportionately falls on women, helping them enter or re-enter the labor market.

2. Current State of India’s Care Economy

India’s care economy is in its nascent stages compared to global standards. The country’s demographic trends, including a rapidly aging population and growing nuclear family structures, are driving demand for care services. By 2050, it is expected that 20.8% of India’s population will be elderly, equating to approximately 347 million people. Additionally, the number of children will remain substantial, despite a slight decline.

However, the care economy remains largely unregulated and unsupported. Most care work happens in informal settings without adequate infrastructure or public funding. India’s public spending on the care economy is less than 1% of its GDP, far behind other developing and developed nations.

3. The Gendered Nature of Care Work

The care economy is heavily gendered. Women in India are overburdened by unpaid care work, which limits their participation in the formal economy. According to a report by the National Statistical Office, Indian women spend on average five hours per day on unpaid work, compared to less than an hour for men. This imbalance directly contributes to the low female labor force participation rate in the country, which was 37% in 2023, significantly below the global average.

Policies like the Maternity Benefit Act and Childcare Leave (CCL) are steps in the right direction but remain inadequate in addressing the larger issue. These policies often exclude a large portion of women working in the informal sector or in small enterprises, which make up 98% of Indian businesses.

4. Key Sectors of the Care Economy

a. Childcare

Childcare is one of the most critical sectors of the care economy. The Integrated Child Development Services (ICDS) program is the largest government initiative in this area, providing nutrition, health, and early education services to millions of children across the country. However, the program still faces significant challenges. Only about 48% of children in the 0-6 years age group are covered, leaving out large segments of the population, particularly in rural and marginalized communities.

The demand for affordable and accessible childcare services is growing as more women enter the workforce. Investing in childcare infrastructure could not only improve child development outcomes but also enable more women to participate in paid employment.

b. Elder Care

With India’s aging population set to nearly double by 2050, eldercare is an increasingly important component of the care economy. Yet, eldercare services are severely underdeveloped. The private sector has stepped in to fill some gaps, but the high costs of private eldercare make it inaccessible to many families. Government initiatives in this area are limited, and there is a pressing need for more public investment in eldercare facilities.

c. Healthcare

Healthcare is another critical part of the care economy, providing both direct care and contributing to the overall well-being of society. The Indian healthcare sector is one of the country’s largest employers, but it faces a shortage of skilled workers, particularly in rural areas. Expanding access to healthcare services and improving working conditions for healthcare workers are key to strengthening this sector.

5. Difference between Care Economy & Monetized Economy

Aspect	Care Economy	Monetized Economy
Definition	Involves unpaid and paid work related to caregiving, crucial for the well-being of individuals (e.g., childcare, eldercare, healthcare).	Formal economic activities where goods and services are exchanged for money.
Valuation	Largely unpaid and undervalued, despite contributing significantly to society.	Valued based on market prices, with direct financial transactions.
Workforce Composition	Dominated by women, especially in unpaid work (domestic chores, caregiving).	Involves a formal workforce with balanced gender representation, though male-dominated in some sectors.
Economic Recognition	Often invisible in GDP calculations and economic metrics.	Fully recognized and measured in national income and GDP statistics.
Examples	Childcare at home, eldercare by family members, voluntary healthcare work.	Manufacturing, retail, professional services, healthcare jobs in formal sectors.
Impact on Gender Equality	Reinforces gender inequality by assigning most care responsibilities to women.	Can promote gender equality through formal employment opportunities but often remains unequal.
Government Support	Limited policy support; informal care work often lacks protections and formal recognition.	Heavily regulated with clear protections, wages, and benefits for workers.
Primary Drivers	Social norms, familial obligations, community expectations.	Market demand, profit motives, consumer behavior.

6. Challenges Facing India’s Care Economy

a. Lack of Infrastructure

One of the biggest challenges is the lack of adequate infrastructure to support care services. Most public care facilities are overcrowded, underfunded, and poorly maintained. For instance, the ICDS program, while vast in scale, struggles with insufficient funding and staffing, limiting its ability to serve the entire eligible population.

b. Informality and Low Wages

The care economy in India is characterized by a high degree of informality. Many care workers, including domestic helpers and caregivers, operate without formal contracts, job security, or benefits. This informality not only affects the quality of care but also leaves workers vulnerable to exploitation and low wages.

c. Gender Inequality

The gendered division of care work is one of the most significant barriers to achieving gender equality in India. Unpaid care work, largely performed by women, is not recognized or valued in economic terms, which perpetuates inequality and limits women’s opportunities for education and employment.

7. Opportunities in the Care Economy

Despite these challenges, the care economy offers significant opportunities for growth and development. With the right investments, India could create millions of jobs in the care sector, particularly for women. This would not only reduce the gender gap in employment but also contribute to overall economic growth.

a. Public Investment in Care Infrastructure

One of the most effective ways to unlock the potential of the care economy is through increased public investment in care infrastructure. This includes expanding access to affordable childcare and eldercare services, particularly in underserved areas. Countries like Canada and Germany have already seen significant economic benefits from such investments, and India could follow a similar path.

b. Formalization of Care Work

Formalizing care work by providing legal protections, fair wages, and benefits to care workers is essential for improving the quality of care services and ensuring decent working conditions. This could be achieved through policies that encourage the formalization of domestic work and the establishment of care cooperatives.

c. Skill Development and Training

Investing in skill development and training for care workers would not only improve the quality of care services but also provide workers with better job prospects and career growth. Programs that certify and upskill care workers could help create a more professional and well-regarded care workforce.

8. The Informal Nature of Care Work

A substantial portion of care work in India remains unpaid and informal, making it difficult to recognize and measure its economic value. Studies estimate that unpaid care work accounts for over 15% of India’s GDP. However, because this work is not officially counted in national income statistics, its true contribution to the economy often goes unnoticed. Women bear the brunt of this hidden care economy, performing tasks that are critical to the well-being of families and communities but are neither compensated nor socially valued.

9. Government Initiatives to Support the Care Economy

The Indian government has introduced several programs aimed at strengthening the care economy. Some of the notable initiatives include:

• Saksham Anganwadi and Poshan 2.0: This program provides nutritional support and care to children, helping mothers pursue employment or education.
• National Social Assistance Programme (NSAP): This program offers financial support to elderly people, widows, and individuals with disabilities.
• Public Infrastructure Programs: Initiatives such as the Jal Jeevan Mission, which aims to provide piped water, and the Pradhan Mantri Ujjwala Yojana, which provides LPG connections, help reduce the time women spend on domestic chores, freeing them to engage in paid work.

10. The Way Forward: Building a Robust Care Economy

To fully harness the potential of the care economy, India must take a multi-faceted approach. Some of the key strategies include:

• Recognizing and Valuing Unpaid Care Work: Integrating care work into national economic accounts would help policymakers better understand its contribution and allocate resources accordingly.
• Increasing Public Investment: Raising public spending on care services to at least 2% of GDP could create millions of jobs and improve the quality of care services.
• Supporting Informal Care Workers: Offering better compensation and social protections for informal care workers would improve their livelihoods and contribute to economic growth.
• Promoting Shared Responsibility: Encouraging shared caregiving responsibilities between men and women, through policies like parental leave and flexible work arrangements, can reduce the burden on women.
• Expanding Access to Care Infrastructure: Building more childcare centers, eldercare facilities, and healthcare services is essential for supporting India’s growing population and enabling more women to participate in the workforce.

The care economy is an indispensable component of India’s broader socio-economic framework. By investing in care services, recognizing the contributions of unpaid care workers, and promoting gender equality, India can not only improve the well-being of its citizens but also drive economic growth. A well-functioning care economy will ensure that caregivers have the support they need to participate fully in the workforce, enhancing both individual livelihoods and national productivity.

Practice Question

Examine the role of India’s care economy in addressing gender inequality and promoting inclusive economic growth. Discuss the challenges and potential policy interventions required for its development. (250 words)