Women of the World Women and the Economy in India Women of the World

India's economy has undergone a substantial transformation since the country's independence in 1947. Agriculture now accounts for only one-third of the gross domestic product (GDP), down from 59 percent in 1950, and a wide range of modern industries and support services now exist. In spite of these changes, agriculture continues to dominate employment, employing two-thirds of all workers. Furthermore, despite advances in the economy, large segments of the population are destitute. Some estimate that over one-third of the population is living below the poverty line (The World Bank, 1997). India faced economic problems in the late 1980s and early 1990s that were exacerbated by the Persian Gulf Crisis. 1 Starting in 1992, India began to implement trade liberalization measures. The economy has grown—the GDP growth rate ranged between 5 and 7 percent annually over the period 1993-97 (The World Bank, 1998)—and considerable progress has been made in loosening government regulations, particularly restrictions on private businesses. Nevertheless , India remains one of the world's most tightly regulated major economies (Heitzman and Worden, 1996). India is a multifaceted society where no generalization could apply to all of the nation's various regional, religious, social, and economic groups. Nevertheless, certain broad circumstances in which Indian women live affect the ways they participate in the economy. Indian society is extremely hierarchical with virtually everyone 1 To fuel economic growth during the 1980s, India relied on borrowing from foreign sources to a greater extent than before. When the price of oil doubled after Iraq invaded Kuwait, India faced a balance of payments crisis. In addition, many Indian workers who lived in the Middle East either lost their jobs or returned home for safety.