Digital financial inclusion key to boosting women's participation in India’s platform economy: ILO-NCAER

NITI Aayog estimates India’s platform workforce could rise from 12 million in 2024-25 to 23.5 million by 2029-30.

NEW DELHI: Despite the flexibility offered by platform work, women’s participation in India’s growing platform economy remains constrained by limited access to formal financial services, gaps in digital literacy, safety concerns and restrictive social norms, an ILO-NCAER policy brief said on Monday.The brief, “Advancing Women’s Digital Financial Inclusion in the Platform Economy”, said women need access to a range of financial services throughout their platform-work journey, including start-up capital, short-term credit, insurance, savings and financial planning tools.It highlighted cashflow-based lending as a key lever for inclusion, particularly because women are less likely to own land or property that can be used as collateral. Digital records of platform payments can provide lenders with verifiable evidence of income and repayment capacity.Addressing a Roundtable at the release of the Policy Brief, NCAER director general Suresh Goyal said, “A woman’s best protection is a little money of her own and access to credit and mobility are important conditions for women to have better employment opportunities. Platform economy has given that opportunity.”The brief identified two ways to leverage women’s digital footprints: using India’s Digital Public Infrastructure, including the Account Aggregator framework, to make financial data portable, and enabling platforms to partner with lenders to offer loans, savings and insurance through their apps.ILO country director Michiko Miyamoto said, “Digital financial inclusion must enable women to build income security, resilience, and sustainable livelihoods.”ILO Senior Specialist Radhicka Kapoor said integrating financial DPI with e-Shram records could further expand access, provided safeguards against algorithmic bias are built in.The brief also flagged device ownership as a barrier, noting that women’s digital access is often mediated through family members.

NITI Aayog estimates India’s platform workforce could rise from 12 million in 2024-25 to 23.5 million by 2029-30.Director of NCAER’s Centre for Gender and Macroeconomy, Prof. Ratna Sahay, summed up the key takeaway, “Digital footprint in platform economies can be a game-changer for women to access credit, underpinned by regulation that encourages innovation while ensuring consumer protection and financial stability.”