Zerodha's Nithin Kamath shares insight on India's low female labour force participation rate

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Also read: Women Equality Day today: Know significance and history In his recent post on X (formerly Twitter), Nithin Kamath said, “Empowering women to join the workforce is an obvious way to increase our economic growth. Our female labor force participation rate is among the lowest in the world." He also underlined thed drastic fall in female labour force participation rate from 30% to 20% post 90s era.

The percentage increased minutely by 24% in the coming years. Also Read: Exchange Traded Funds: Investing in ETFs? Nithin Kamath's Zerodha shares five things investors should know about Delving an answer to the sudden fall and then slight increase in FLFP trend, Nithin Kamath shared the data provided by India Data Hub.

In his analysis he said that the female labour participation and per capita GDP follows a U-shape trend. Also Read: Zerodha AMC to Jio Financial Services: New Mutual Fund players that MF investors should know “The relationship between female labour participation and per capita GDP tends to be U-shaped.

This is because at lower income levels, a large part of female employment (and the same holds for children) tends to be distress or need-driven As income levels rise, this distress employment reduces, and thus female labour participation declines. And then it rises as women enter the labour force again, not due to distress, but voluntarily," explains Nithin Kamath.