Lowering trade barriers in sectors with relatively high female employment can boost economic growth: Exim Bank study

Lowering trade barriers in sectors with relatively high female employment can significantly boost economic growth and welfare, according to a study on female labour force participation in export-intensive sectors by the Export-Import Bank of India (Exim Bank).

The study “Trade as a Tool for Economic Empowerment of Women: An Indian Perspective” assessed that a 1 per cent reduction in tariffs faced by India’s exports in sectors that are relatively more important for the female workforce could lead to a 0.36 per cent increase in labour supply in the country and a 0.14% increase in GDP. The overall welfare gains from such a tariff reduction are estimated to be nearly 3.6 per cent.

Focus areas

According to the study, a higher proportion of female employees in India are engaged in low-technology and resource-intensive sectors such as food and beverages, leather products, and textiles and apparel etc., that leave them disproportionately exposed to fluctuations in global demand and commodity price shocks.

The study also highlighted that sectors which employ women more, typically face higher tariffs on inputs, indicating the need to seek tariff relaxation in such sectors.

To enhance women’s participation in trade and promote women’s economic empowerment, the study made suggestions for actionable strategies, including mainstreaming gender consideration in trade agreements; and enhancing implementation of women-centric trade facilitation measures.

Further, it also recommended leveraging e-commerce for enhancing market access for women; promoting women as suppliers through public procurement; enhancing women’s access to export finance; addressing gaps in gender-disaggregated data, etc.

Harsha Bangari, Managing Director, Exim Bank, said the bank is actively working on developing a dedicated financing programme for strengthening export capabilities of women entrepreneurs.