ARTICLES

Since India's independence, the nation has remarkably progressed in various fields. Yet, achieving gender equality is still an ongoing struggle. Financial literacy is a huge step towards women's empowerment. Financially independent women not only upscale their lives but also play a pivotal role in economic growth, societal progress, and community development—thereby contributing to the betterment of society.

In 2024, female entrepreneurship is at an all-time high. For instance, Falguni Nayar's Nykaa has revolutionized the beauty industry. Kiran Mazumdar-Shaw's Biocon is a leading Indian biopharmaceutical company. As these entrepreneurs progress, they empower more women to start businesses that create jobs and stimulate the local economy.

How Financially Empowered Women Transform Economies?

A recent report forecasts that the next five years are crucial for India's economic growth. According to the study, India can achieve a GDP growth rate of 8% by ensuring that women make up more than half of the new workforce by 2030. There are various other ways in which empowered women attaining financial independence positively impact economies:

Increased Workforce Participation

Women are crucial in increasing productivity and economic growth within various sectors, including IT and healthcare. India's current Female Labor Force Participation Rate (FLFPR) is 37%. For incremental economic growth, the country should raise its FLFPR to 43.4% by 2030. 

Bridging the Gender Pay Gap

Women often pause their careers for childbirth, leading to fewer earning opportunities. On average, women take a break from work for about 12 years, which leads to much lower savings than men. Financial independence is crucial for women to secure their future. It also empowers women to negotiate for better wages, increasing their chances of earning more. These factors play a significant role in closing the gender pay gap.

Entrepreneurial Ventures

Female business owners drive economic growth, foster innovation, and promote a culture of entrepreneurship. They generate employment opportunities and contribute to the overall economic development of different regions. Women-run businesses often prioritize meeting community needs like sustainability and social consciousness. 

Higher Household Incomes

Dual-income households enjoy better living standards and increased savings. Women well-versed in financial literacy are more likely to ensure their children receive proper schooling and healthcare, thus breaking the cycle of poverty and creating opportunities for future generations.

Social Benefits of Female Financial Literacy

Financially independent women prioritize education and healthcare for their families. Besides benefiting individual families, they also uplift communities by fostering a culture of financial security and prosperity. Other ways in which financially empowered women build healthier societies are:

Challenging Gender Bias

Financial independence empowers women to challenge traditional gender roles and advocate for equal rights and opportunities. It gives them a voice in decision-making processes, at home and outside. As more women achieve financial independence, they can inspire and mentor others, creating a ripple effect that promotes gender equality. This shift helps dismantle patriarchal structures and fosters a more inclusive society where everyone has equal opportunities to succeed.

Strengthened Family Dynamics

Financial independence fosters mutual respect and partnership within households. When women contribute financially, it promotes equality and shared responsibility. This positive shift in family dynamics creates a supportive environment for children, shaping their future aspirations and attitudes toward gender roles. Financially independent women also act as role models for their children.

Reduced Gender-based Violence

Female financial independence reduces domestic violence and improves social harmony. When women have control over their finances, they are less vulnerable to abuse and can seek help if needed. This contributes to a safer and more stable society. Additionally, financially independent women are more likely to invest in their communities, promoting social cohesion and reducing crime rates.

Community Leadership

Financially independent women often take on leadership roles within their communities. They lead by example, spearheading initiatives that address local issues and drive development. From organizing educational programs to implementing health and sanitation projects, they significantly contribute to community welfare. Their leadership fosters a sense of unity and collective progress, making communities more resilient and self-sufficient.

Conclusion

Financially independent women are crucial in societal progress, contributing to economic growth, social stability, and community development. We can create a fairer and more prosperous society by removing obstacles to women's financial independence and giving them more power through programs and initiatives. Various programs and policies, such as the Pradhan Mantri Mudra Yojana and Beti Bachao Beti Padhao, aim to promote female financial freedom by focusing on financial literacy, access to credit, and skill development.

As we celebrate this Independence Day, let us also commit to empowering our women, ensuring their financial freedom, and building a stronger nation from within.