71% of women remain in informal work or outside education and employment: NITI Aayog

Women’s participation in India’s formal workforce remains severely constrained despite growing investments in skilling, according to a recent NITI Aayog report. The report found that 71% of women are either in informal employment or fall within the NEET category, meaning they are not in education, employment or training, while only 3% are in formal jobs.

The findings, published in the report Reimagining Skilling for Viksit Bharat@2047, suggest that the challenge extends beyond access to training programmes. The report indicates that the labour market is failing to provide sufficient formal, flexible and accessible opportunities for women even after they acquire skills.

Training gains are failing to convert into formal employment

According to the report, the skilling ecosystem continues to face structural challenges that limit women's ability to participate in the workforce and secure stable livelihoods.

The report notes that women encounter multiple barriers before, during and after training. These include caregiving responsibilities, safety concerns, lack of childcare support, inadequate transport infrastructure, distance from training centres and limited availability of flexible employment options.

NITI Aayog stated in the report that fixed training formats often clash with household responsibilities, particularly for women with caregiving duties. It added that essential support systems such as safe transport, nearby training centres and secure childcare facilities are often unavailable.

The report argues that these barriers shape not only women's participation in skilling programmes but also their ability to transition into employment afterwards.

Mobility and flexibility emerge as key concerns

Survey findings cited in the report reveal a strong preference among women for training models that accommodate their daily responsibilities.

Key findings include:

• 71% of women are either in informal employment or in the NEET category
• Only 3% of women covered in the analysis are in formal employment
• 75% of women prefer skilling programmes located within a 5-kilometre radius
• 78% prefer part-time courses that allow them to balance learning with caregiving responsibilities
• 68% specifically favour part-time formats over full-time programmes

The report notes that training opportunities located beyond familiar neighbourhoods often become inaccessible due to concerns around mobility, safety and family expectations.

Social norms continue to influence participation

To illustrate the challenges women face, the report presents the example of "Sangeeta", a woman who wanted to acquire skills to supplement household income. According to the report, travel beyond a familiar 3-5 kilometre radius and participation in fixed full-day programmes were not practical options due to family expectations, caregiving responsibilities and safety concerns.

The report also cites testimony from a recently married woman in peri-urban Vijayawada who said she was unaware of skilling programmes available nearby and felt uncomfortable seeking information because it could be viewed negatively within her social environment.

NITI Aayog suggests these experiences point to a broader social challenge where cultural expectations and concerns around visibility continue to influence women's participation in skilling initiatives.

Policy recommendations focus on access and support

The report proposes a series of interventions aimed at making skilling opportunities more accessible for women.

Among its recommendations are:

• "Sakhi Booths" to serve as trusted local awareness centres
• Community Women Circles to provide mentorship and peer support
• A women-centric digital platform offering private and safe access to information
• "Surakshit Saathi", a public-private initiative to provide secure accommodation and affordable transport near industrial and training hubs

The report positions these interventions as measures to reduce participation barriers and improve women's engagement with skilling programmes.

Beyond training: the challenge of sustainable livelihoods

NITI Aayog also highlights a disconnect between skills acquisition and economic outcomes. The report states that training alone does not guarantee long-term workforce participation.

Even after completing training, many women struggle to find flexible and dignified livelihood opportunities. As a result, a significant number turn to home-based self-employment because it offers greater flexibility within existing social and family constraints.

However, the report notes that these enterprises often face obstacles including limited access to capital, weak market linkages and restricted decision-making autonomy, making it difficult for women to scale their businesses or achieve sustainable income growth.

Focus shifting from training numbers to employment outcomes

The report concludes that India's skilling ecosystem has historically focused on training delivery rather than measuring what happens after training is completed.

According to NITI Aayog, future skilling strategies will need to place greater emphasis on employment outcomes, entrepreneurship viability and long-term economic participation if India is to fully unlock women's contribution to the workforce as part of its Viksit Bharat 2047 vision.