The Intersection of Poverty and Gender

Poverty disproportionately affects women, especially those working in India’s unorganized sector. Domestic workers, who number over 4.2 million, often earn 4,000-6,000 per month without legal protection. Around 30% of India’s 10 million street vendors are women, facing harassment and unstable incomes. These women face economic hardships due to a lack of legal protection, unstable incomes, and minimal social security.

Key Challenges Faced by Women in the Unorganized Sector

Women in the unorganized sector face numerous challenges that hinder their financial independence and overall well-being. Financial exclusion remains a major hurdle, as many struggle to access banking services or secure loans, making it difficult to achieve economic stability. Job insecurity further compounds their vulnerability, with most working without contracts and at risk of sudden job losses. In India, over 12 million women are employed in the construction sector, earning between ?300-?500 per day but with minimal social benefits. Wage disparity is another pressing issue, as women often earn significantly less than men for the same work and lack any form of wage protection. In agriculture, where over 60% of laborers are women, daily wages range from ?200-?300, offering little job security. Workplace exploitation worsens their situation, exposing them to unsafe working conditions and gender-based harassment, often with no legal recourse. Additionally, the absence of social security limits access to essential benefits such as healthcare, pensions, and maternity support, forcing many to endure harsh working conditions. These interconnected challenges highlight the urgent need for systemic reforms to protect and empower women in the unorganized sector.

Indian Policies Supporting Women in the Informal Economy

To address these challenges, the Indian government has implemented several policies:

• Unorganized Workers’ Social Security Act, 2008 – Provides benefits like health insurance and pensions.
• Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) – Guarantees 100 days of wage employment, reserving one-third of jobs for women.
• Self-Employed Women’s Association (SEWA) – A trade union empowering women workers through self-reliance and financial inclusion.
• Pradhan Mantri Matru Vandana Yojana (PMMVY) – Financial assistance for pregnant and lactating women.
• E-Shram Portal (2021) - A database to extend social security benefits to informal workers.

The Way Forward

While existing policies offer some relief, a more comprehensive approach is essential to creating lasting change. Ensuring fair wages through stronger wage laws, along with expanded social security for better pensions, healthcare, and maternity benefits, can provide financial stability. At the same time, stronger legal protections are needed to prevent workplace exploitation and harassment. Financial inclusion initiatives must improve access to banking and microcredit, enabling women to gain economic independence. Skill development programs can further enhance employability and open up better income opportunities. By integrating legal safeguards, financial empowerment, and policy reforms, we can build a more secure and equitable future. Only through these collective efforts can women in the unorganized sector achieve true economic and social upliftment.

Conclusion

Women in India’s unorganized sector are vital to economic growth, yet they remain marginalized. Strengthening policies, ensuring proper implementation, and fostering awareness can help uplift them and create a more inclusive economy. Addressing gender-based poverty isn’t just about social justice—it’s about sustainable development and national progress.

Let’s work together to improve policies and raise awareness for women in India’s unorganized sector. Support gender equality, push for stronger reforms, and help create a more inclusive economy for all.