Opinion | The Economic Power Of Caregivers In India
Both paid and unpaid care work are integral to human, social, and economic well-being, and are vital for sustainable development
The economic power of caregivers in India represents a crucial yet often overlooked segment of the country’s economy. The International Labour Organization (ILO) defines care work as the activities and relationships required to meet the physical, mental, and emotional needs of individuals—whether children, the elderly, or those with disabilities. Both paid and unpaid care work are integral to human, social, and economic well-being, and are vital for sustainable development.
According to the 2024 Time Use Survey, caregiving in India, especially unpaid caregiving, is predominantly carried out by women. The survey reveals that women spend an average of 7.1 hours daily on caregiving activities, such as childcare, eldercare, and household chores, compared to 2.7 hours for men. Despite this immense time investment, India allocates only about 1% of its GDP to care infrastructure and services, including pre-primary education, maternity benefits, disability support, and long-term care. This underinvestment severely limits women’s ability to join the workforce, exacerbating gender disparities. The monetary equivalent of women’s unpaid care labour is estimated at around $270 billion annually. With women spending an average of seven hours a day on unpaid care work, addressing this imbalance is crucial for India to reach gender parity in the workforce.
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The contribution of care work to India’s GDP has been estimated at 15-17%, highlighting the significant economic value of both unpaid and underpaid care labour, though it remains largely invisible in traditional economic measures. Care work is often seen as a personal or family responsibility rather than a public good, particularly in the context of childcare. Parents and extended families are typically left to navigate childcare arrangements and funding in the absence of robust public investment. However, research, such as James Heckman’s, demonstrates that high-quality early childhood care offers substantial economic returns—$4 to $16 for every $1 invested.
Care work should no longer be considered merely a commodity or personal choice but rather a public good that benefits society at large and future generations. Investing in the care economy is an investment in a more equitable and sustainable future for all.
The Time Use Survey also reveals that caregiving in India begins at a young age, with one in five children (ages 6-17) engaged in unpaid care work and girls shouldering a disproportionate share (32.9% of girls vs 9.1% of boys). This early caregiving burden can have long-term consequences, including reduced educational participation and difficulty transitioning into the adult labour market.
Furthermore, the demand for care services is expected to increase significantly over the next 25 years due to India’s aging population. According to the United Nations Population Fund (UNFPA), as of 2022, 25% of India’s population is under 14 years old (~360 million people), while 10% is 60 or older (~147 million people). By 2050, the proportion of children is projected to decrease to 18%, while the elderly population will grow to 20.8%. This demographic shift will create a substantial rise in demand for caregiving services.
Caregiving is a diverse experience that intersects with multiple economic, social, and personal challenges and tends to impact marginalised communities. Supporting caregivers is not only a moral imperative but also a key economic strategy to enhance workforce retention, promote economic mobility, and reduce systemic inequalities.
The World Economic Forum predicts that 40% of emerging job opportunities will be in the care sector due to global demographic shifts, evolving social norms, and increased demand for trained caregivers. In India, public investment equivalent to 2% of GDP could create 11 million jobs, with nearly 70% of these benefiting women. Expanding access to quality childcare would improve health, education, and developmental outcomes for children, boost women’s participation in the workforce, and generate decent jobs in the paid care sector, helping to formalise the informal economy.
Recognising the critical role of the care economy in India’s growth, especially in relation to the Viksit Bharat 2047 goals, the Modi government has initiated policies addressing the unequal distribution of care work. At the 2022 G20 summit, leaders committed to addressing the care economy’s inequalities and prioritising care work for economic growth. The 2023 G20 New Delhi Declaration further emphasised the need for investments in social protection, affordable care infrastructure, and ensuring continued participation of women in education and employment.
In line with these goals, the Modi government has recently approved the establishment of 157 new nursing colleges across the country, with an investment of Rs 1,570 crore. This initiative will add approximately 15,700 new nursing graduates annually, ensuring high-quality, affordable, and equitable nursing education.
The Modi government has also introduced policies to support caregiving, including direct care services such as Saksham Anganwadi, PM Poshan, extended maternity leave, and mobile crèches. Additionally, policies aimed at strengthening care-support infrastructure, such as the National Rural Drinking Water Mission, Swachh Bharat Mission, National Health Mission, and PM Surya Ghar Muft Bijli Yojana, aim to reduce the burden of unpaid domestic labour on families.
Investing in the care economy not only enhances individual well-being but also strengthens the foundation for a more equitable, sustainable, and prosperous India.
Shilpi Verma is a senior executive with over 18 years of extensive experience in the business consulting and services industry, specialising in business research, contract management, and client relationship management. Views expressed in the above piece are personal and solely those of the author. They do not necessarily reflect News18’s views.
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