South Asia’s Hidden Workforce: How Women’s Untapped Potential Could Transform the Economy
Women in South Asia play a crucial role in the economy, but their contributions often go unnoticed. Many work in farming, sewing, and technology, with female-led businesses rising due to online platforms. Increasing women’s workforce participation could significantly boost economic growth. However, societal norms, financial constraints, and legal barriers hinder their progress. Limited access to education, funding, and transportation further restricts opportunities. Many women work in the informal sector without financial security or legal recognition.
Nepal has improved financial inclusion, showing change is possible. Cultural biases also prevent women from leadership roles. Awareness of government aid is low, especially in rural areas. Addressing these challenges can empower women and strengthen the economy. Recognizing their contributions is key to creating equal opportunities.
South Asia’s Hidden Workforce: How Women’s Untapped Potential Could Transform the Economy
Women in South Asia are vital to the economy, yet their work often goes unrecognized. They play key roles in farming, sewing, tech startups, and home-based industries. With the rise of online platforms, more women are launching businesses today. However, their potential remains underutilized. For instance, if India increased women’s workforce participation from 31% to 50%, the country’s economy could grow 1.5% faster annually.
Despite this, women are rarely acknowledged as leaders or innovators. Instead, they are referred to as “silent contributors” because their efforts are overlooked. This lack of recognition has serious consequences: fewer opportunities for education and employment, reduced financial security, and limited representation in leadership roles. It also discourages younger women from pursuing careers, slowing progress across industries.
Three Major Challenges Holding Women Back
Studies highlight three key barriers preventing women entrepreneurs in South Asia from reaching their full potential:
- Social and Cultural Norms – Deep-rooted gender roles limit women’s freedom. Many are expected to prioritize childcare or household duties over work. The award-winning film The Great Indian Kitchen portrays this struggle, depicting a woman trapped by traditional expectations that prevent her from working or studying. In cities like Mumbai, poor public transport makes commuting difficult, especially for women responsible for family care.
- Financial Barriers – Women face challenges in securing loans and financial support. Most work in the informal sector—selling goods on the streets, farming, or making products at home. These jobs are rarely registered, preventing women from accessing bank loans, social security, and larger markets. In cities like Delhi and Colombo, for example, women sell handmade items informally. Across South Asia, only 25% of women have bank accounts, compared to 41% of men—the widest gender gap in banking globally.
- Legal and Institutional Challenges – Governments often fail to support women adequately. Many women are unaware of their legal rights or financial aid programs. In Sri Lanka’s rural areas, for instance, women miss out on grants simply because they do not know they exist. In some cultures, women leading men is still frowned upon, resulting in policies that disproportionately favor male entrepreneurs.
Why the Informal Sector Isn’t Enough
Most working women in South Asia are engaged in informal jobs, such as street vending or home-based work. While these roles provide income, they come with significant risks. Unregistered businesses mean no access to loans, insurance, or legal protection. Women in these sectors often earn less and face exploitation. Without formal recognition, their work remains undervalued, keeping them trapped in poverty cycles.
Progress Is Possible
Nepal has demonstrated that change is achievable. By 2023, 89% of women and 90% of men in Nepal had access to banking and financial services—proving that closing the gender gap is possible with targeted efforts. Additionally, online platforms are helping women expand their reach beyond local markets, creating new economic opportunities.
What Needs to Change
To unlock women’s economic power, South Asia must:
- Challenge Gender Stereotypes – Families and communities should encourage women’s education and careers. Media and films like The Great Indian Kitchen can help spark discussions about outdated norms.
- Improve Financial Access – Governments and banks must introduce women-friendly policies, such as simplified loan processes and mobile banking solutions for rural areas. Financial literacy and business training programs can also empower women.
- Formalize Informal Work – Registering home-based businesses and street vendors would allow women to access social benefits and expand their enterprises.
- Increase Awareness – Campaigns aimed at educating women about legal rights, grants, and training programs—particularly in rural areas—can help them seek the support they need.
The Road Ahead
Women’s contributions are the backbone of South Asia’s economy, yet societal norms and systemic barriers continue to limit their potential. Recognizing their work and integrating them into the formal economy is not just a matter of fairness—it is smart economics. When women thrive, families, communities, and entire nations benefit. By breaking down the obstacles that hold women back, South Asia can unlock one of its greatest untapped resources: the talent and resilience of millions of unseen women.