Centring Care in India’s Economic Policy: A Missed Opportunity in Union Budget 2025

The Union Budget 2025 has allocated a record-breaking ₹24,49,028.68 crore to the Gender Budget (GB), marking a 37.3% increase from FY24 and constituting 8.86% of the total budget. However, this rise is largely due to the inclusion of the PM Garib Kalyan Anna Yojana, which alone accounts for 24% of the GB, rather than significant investments in care infrastructure or new gender-responsive schemes.

While the Economic Surveys of 2023-24 and 2024-25 emphasize care infrastructure as a crucial factor in women’s empowerment, the 2025 Budget fails to introduce substantial measures to strengthen India’s care economy, leaving critical investments missing. This reflects a persistent invisibilisation of care work in India’s economic policies.

Unpaid Care Work and Gender Disparities in India

Globally, women spend an average of 17.8% of their time on unpaid care and domestic work (UCDW). However, the burden is significantly higher in the Global South, with India standing out as a particularly concerning case:

Indian women spend 40% more time on unpaid care work than their counterparts in South Africa and China.

According to the International Labour Organization (ILO), 53% of Indian women remain outside the workforce due to care responsibilities, compared to just 1.1% of men.

Poor and marginalized women suffer the most, juggling 17-19 hours of daily labor between paid work and household duties, leading to time poverty and a decline in their overall well-being.

Feminist economists from the Global South highlight that unpaid care work extends beyond the household to include agricultural work, water and fuel collection, cleaning, and cooking. Limited access to basic infrastructure further increases this burden:

Women spend nearly five hours daily collecting water, whereas men spend only 1.5 hours.

Climate change will further intensify this burden, with water-related unpaid labor in India projected to reach $1.4 billion by 2050 under a high-emissions scenario.

Solutions: Recognizing, Reducing, and Redistributing Care Work

The Economic Survey 2023-24 states that direct public investment equivalent to 2% of GDP could generate 11 million jobs while significantly easing women’s care burden. A comprehensive Three R Framework – Recognise, Reduce, and Redistribute – combined with Representation, can create transformative policies for gender equality.

1. Recognising Unpaid Care and Domestic Work (UCDW)

The 2019 Time Use Survey was a milestone in recognizing women’s unpaid work, showing that women spend an average of 7 hours daily on UCDW.

To further enhance policy benefits, Time-Use modules should be integrated into existing household surveys to continuously track gender disparities in care work.

2. Reducing the UCDW Burden with Infrastructure and Technology

The government has acknowledged service gaps by extending the Jal Jeevan Mission (JJM) until 2028, aiming for 100% potable water coverage.

However, funding delays and underutilization hinder its progress. Despite a 195% jump in Revised Estimates (RE) over last year, the Budget Estimates (BE) for JJM declined by 4.51%.

Less than 50% of villages have functional household tap connections, requiring better implementation and sustainable water policies.

Expanding childcare centers, eldercare support, and assistive technologies can alleviate women’s care burden and boost workforce participation.

3. Redistributing Care Work Among the State, Households, and the Private Sector

The newly announced ₹21 lakh crore Urban Challenge Fund, with ₹10,000 crore allocated for FY 2025-26, offers a transformative opportunity to address gender disparities.

This fund aims to finance up to 25% of urban redevelopment projects, including water and sanitation initiatives.

India can scale up pilot care infrastructure models under the Smart Cities Mission, inspired by Bogota’s Care Blocks, which centralize caregiving services to reduce unpaid work.

4. Enhancing Women’s Representation in Economic Decision-Making

Excluding women from policy-making processes leaves them vulnerable to ineffective policies that fail to address their lived realities.

Research shows that involving women in economic decision-making increases policy effectiveness by six to seven times.

Moving Forward: Prioritizing Care as an Economic Growth Driver

With the government’s emphasis on Nari Shakti as a driver of economic growth, India has the opportunity to set a global example for a gender and care-sensitive economy. However, the 2025 Budget falls short by not prioritizing care as a central economic pillar.

To truly empower women and achieve inclusive growth, a deliberate, well-funded strategy is essential. Care work should not be treated as an afterthought but as a core component of economic policy, ensuring that all women, especially those from marginalized backgrounds, benefit from India’s development agenda.

Keywords:

Gender Budget 2025

Care economy in India

Unpaid care work in India

Women in labor force India

Economic Survey 2023-24

Jal Jeevan Mission 2028

Urban Challenge Fund India

Smart Cities Mission India

Nari Shakti and economic growth

Feminist economics Global South

By strategically investing in care infrastructure, India can bridge gender gaps, boost women’s workforce participation, and drive long-term economic prosperity.

By Team Atharva Examwise #atharvaexamwise