Date : 04/10/2023

Relevance: GS Paper 2- Social Justice- Gender Equality

Keywords: Skill Gap, Digital Gender Divide, FTA Negotiation

Context-

India's trade ecosystem has a gender disparity issue, with women's participation lagging significantly behind men's. Despite India's ambitions to expand its influence in the Indo-Pacific and reach a target of US$2 trillion in exports by 2030, female participation in trade-related services remains alarmingly low, standing at less than 5 percent compared to nearly 15 percent for men. This disparity raises critical concerns and necessitates urgent action.

Barriers to Women's Participation in High-Value Trade Jobs:

1. Educational and Skills Gap: Gender disparities in education and training limit women's capacity to engage in higher-value opportunities within the trade industry. With a female literacy rate of 70.3 percent compared to the global average of 79 percent, many women are confined to lower-value positions in manufacturing and agriculture. Comprehensive educational reforms are needed to bridge this gap and provide women with equal access to quality education.
2. Gender Wage Gap: In manufacturing sectors, a significant gender wage gap exists, discouraging women from pursuing careers in these industries. While the gap is smaller in services, it persists due to gender bias. Addressing this wage gap is essential to motivate women to participate in high-value trade roles and ensure equal pay for equal work.
3. Challenges in Port Areas: High-value trade jobs often require working in remote and isolated port areas with irregular hours. Limited connectivity, lack of safe public transport, and the threat of harassment deter women's participation in these roles. Investment in infrastructure, including better transportation and enhanced security measures, is imperative to create a conducive environment for women in these industries.
4. Socio-Cultural Barriers: Societal restrictions on women's movements, disproportionate unpaid work, and caregiving responsibilities, as well as other socio-cultural factors, further hinder women's involvement in trade. Comprehensive awareness campaigns and cultural sensitization initiatives can help break down these barriers and promote a more inclusive trade ecosystem.

Barriers for Women-Owned Businesses:

1. Working Capital Requirements: High working capital requirements pose a challenge for women-owned businesses, particularly in sectors facing higher tariffs on inputs. Access to affordable financing and targeted support programs can alleviate this barrier, enabling women entrepreneurs to scale their businesses.
2. Regulatory and Compliance Challenges: Navigating regulations, export quality standards, logistics, and customs processes is more challenging for female traders, increasing their operational burden. Simplifying trade procedures, providing training, and streamlining compliance processes can ease the burden and encourage more women to engage in cross-border trade.
3. Digital Gender Divide: As trade interactions and documentation transition to digital platforms, improving women's digital literacy and reducing the digital gender divide is crucial. Digital literacy programs tailored for women and greater access to technology can bridge this divide and empower women in trade.

Possible Solutions:

1. Gender-Responsive Trade Policy: India's trade policies must mainstream gender and include gender-specific measures to enhance women's involvement in trade. Gender-disaggregated data should inform these policies, helping identify specific areas that require attention.
2. Gender-Focused Research: Conducting research specifically focused on gender issues in trade, as exemplified by the "Gender Mainstreaming at India’s Land Ports" report, can inform policy decisions. This research should be expanded to cover various trade sectors to develop targeted interventions.
3. Fair Wages: Ensure fair and liveable wages for women-intensive industries such as jewelry, food processing, and textiles. Advocating for gender pay equality and implementing mechanisms to enforce it is crucial.
4. Multilateral Initiatives: Utilize multilateral initiatives like the Indo-Pacific Economic Framework for Prosperity, the Quadrilateral Security Dialogue (Quad), and India’s G20 Presidency to promote gender equality in trade. Collaborative efforts at the regional and international levels can reinforce gender-inclusive trade practices.
5. Representation: Include women stakeholders' voices in trade associations and government consultations to inform domestic reforms and capacity-building projects. Encourage and support women's participation in leadership roles within trade organizations.
6. FTA Negotiations: Leverage ongoing Free Trade Agreements (FTAs) with a focus on gender mainstreaming, as seen in the UK-India FTA's "Trade and Gender Equality" chapter. Ensure that FTAs prioritize the elimination of gender-based barriers to trade.

Conclusion:

Promoting gender inclusivity in India's trade ecosystem is not only a matter of economic growth but also a commitment to gender equality and social justice. With concerted efforts and gender-responsive policies that address educational, economic, cultural, and digital challenges, India can bridge the gender gap in trade and harness the full potential of its female workforce. This inclusive approach will not only contribute to economic prosperity but also empower women to become active participants in the trade industry, advancing both gender equality and national economic goals.

Source- -ORF