In the past century, research and individual experiences have revealed the vast impact of gender inequality on women worldwide. India’s poverty landscape reflects this reality. As a result, experts and policymakers consistently stress the importance of reducing India’s gender poverty gap.
The recent COVID-19 pandemic severely disrupted earlier progress and deepened disparities between men and women. Many women, including those who were the sole breadwinners of their families, lost their jobs. This subsequently led to more families being pushed below the poverty line.
Since then, the issue has called for strategic initiatives and approaches to address the widening gender inequality in India.
India’s Gender Gap in Poverty
The poverty gender gap in India is deeply rooted and begins affecting women from birth. A 2021 study conducted by the World Bank found that among children from low-income households, the number of girls was higher than that of boys. While the study uses data from more than 90 countries, the difference mainly occurred in India.
Moreover, this difference only persists in the older age groups. The International Labor Organization (ILO) discovered in 2022 that Indian women earn 20-30% less than their male counterparts. Additionally, social impediments, such as the nature of jobs, complicate women’s efforts to achieve financial independence.
Other societal differences, such as class and caste, further widen the gender gap. One study, focusing on Scheduled Castes (SC) and on Urban versus Rural poverty, from 2021 identified this difference. The study states that SC women earn only 55% of what women from other castes earn.
Additionally, there also arises a difference within this subset when considering urban and rural differences. SC women in urban areas earn slightly more than their rural counterparts. However, it remains lower than that of urban women from other castes. Furthermore, according to another 2023 report, female-headed households showed higher odds of becoming urban poor than male-headed households.
Why Are Women Becoming More Vulnerable to Poverty?
When analyzing the reasons behind India’s gender gap in poverty, several causes come to light. As mentioned earlier, social impediments pose a major difficulty for women. For instance, in Indian society, women often work as domestic help, as in other countries. Domestic work, apart from paying less, is also not included in the national GDP.
This indicates that women’s earnings go unaccounted for in national and international statistics. Relatedly, due to the existing patriarchal model, women also face difficulties due to male-favoring inheritance laws. Studies showed that only 13% of women in India own agricultural land, compared to men. Due to the aforementioned laws, women find it harder to gain control of their assets.
However, one of the major drivers of rising poverty among women is limited access to education. In India, school dropout rates are often alarmingly higher among girls than boys. Early marriages in families residing below the poverty line result in many women not having their high school diplomas.
The Indian Ministry of Statistics and Program Implementation (MOSPI) released a detailed education report in 2016. In this report, females account for higher numbers in nearly every category of student dropouts aged 5 to 29, with only a few exceptions. Additionally, according to the 2020 census, the female literacy rate was 70.3%, 14.4 percentage points lower than the male literacy rate of 84.7%. The lack of education hinders a wide range of opportunities that could help women become financially independent.
Government Initiatives and Programs Aiding Women in Poverty
Women’s empowerment has been an integral part of the Indian government’s agenda in the last few decades. From abolishing Sati to providing education for girls, Indian lawmakers have always focused on opening new avenues of concession for women. While there are implementation issues, the government provides funding for new women-centered initiatives every year.
In 2026, leaders announced schemes for girl child, for women entrepreneurs and capital development. The “Lakpathi Didi Scheme” aims to help women in self-help groups earn more than $1,000. This strategy, when effectively implemented, can alleviate poverty largely among women.
Another economic development initiative, the Trade Related Entrepreneurship Assistance and Development (TREAD) Scheme, aims to support the growth of women entrepreneurs. Under the scheme, the government enables eligible women to access business loans of up to $3,224 to establish their enterprises.
Thirdly, officials also announced the “Stand Up India Mission,” focusing on lower-strata social groups. Women from the SC and the Scheduled Tribes are the target audience for this initiative. It provides loans ranging from $12,900 to $129,000. Through this, the government claims to cover nearly 75% of the production costs for these women’s startups.
Finally, in the spirit of providing financial security, parents of newborn girls can now open bank accounts offering high interest rates. This program, called the “Sukanya Samriddhi Yojana,” was launched as part of the Girl Child Scheme from 2015.
Other Gender Gap Reduction Strategies
Experts and lawmakers have stated that reducing the gender gap requires more than a single approach. The above governmental schemes directly address women’s economic deficiencies, aiming to elicit long-term solutions. For this reason, world changemakers believe that education is a powerful tool for women’s empowerment.
Shivani Nithyanandhan is a member of Kongu Business Forum, a platform that aims to empower individuals in business in the Kongu region. She spoke to The Borgen Project about different strategies that could help women become financially secure. Speaking of education, Nithyanandhan stated, “Access to education and skill development is key. When women are equipped with relevant skills, whether in business, digital literacy or vocational areas, they gain the confidence and ability to earn independently.”
Nithyanandhan also discussed the need for a supportive community for women in poverty to help them set up businesses. The Kongu Business Forum regularly conducts knowledge-sharing sessions to educate women about business opportunities in their locale. Since the Kongu region’s major source of income is agriculture, Nithyanandhan says that the forum aims to help women explore opportunities in agri-related enterprises.
Looking Ahead
India’s gender gap in poverty, similar to that of other countries, has received focus over the last few decades. While visible results do exist, women’s lack of awareness about upliftment schemes continues to hinder widespread growth. Nithyanandhan from the Kongu Business Forum discusses the need for financial and digital literacy that could help prevent this issue.
She also discussed how women’s empowerment within impoverished populations can have a ripple effect. When educated and financially empowered, the female population can positively impact the growth of their community. In this manner, reducing the gender gap also contributes to reducing global poverty.
– Shafika Fathima
Shafika is based in Chennai, India and focuses on Good News and Global Health for The Borgen Project.
Photo: Flickr