India’s Care Economy: Recognising the Invisible Foundation of Development

Syllabus: GS3/ Economy

Context

• The Supreme Court’s 2026 judgment recognising homemakers as “nation builders” and assigning a minimum value of ₹30,000 per month to unpaid domestic care work has brought renewed attention to India’s care economy.

What is the Care Economy?

• The care economy refers to all paid and unpaid activities related to the care of children, elderly persons, persons with disabilities etc.
  • Care work forms a critical pillar of human development, labour productivity, and social welfare systems in modern economies.
• According to the International Labour Organisation, increasing investments in the care services sector have the potential to generate 475 million jobs globally by 2030.
  • For India specifically, direct public investment equivalent to 2% of GDP can potentially generate 11 million jobs, nearly 70% of which will go to women.

Components of India’s Care Economy

• Unpaid Care Work: It includes activities such as childcare, elderly care, cooking, cleaning, household management, and care for sick family members, which are essential for family well-being but remain largely unpaid and unrecognised.
• Paid Care Work: Paid care work includes services provided by healthcare workers, nurses, doctors, ASHA workers, Anganwadi workers, domestic workers, childcare providers, social workers, and caregivers.
  • These services form an important part of India’s social and economic infrastructure.
• Community Care Services: Community-based care services include support systems provided through self-help groups, community health workers, and welfare programmes that assist vulnerable populations.

Why is the Demand for Care Services Rising?

• Demographic Transition: India’s ageing population is increasing the need for long-term eldercare services. 
• Urbanisation and Migration: Rapid urbanisation and migration are weakening traditional joint family systems. Nuclear families often lack informal support networks for caregiving.
• Rising Female Workforce Participation: More women entering the workforce has increased the demand for organised childcare and caregiving services.

Government Initiatives Related to the Care Economy

• Integrated Child Development Services (ICDS): Launched in 1975 to provide early childhood care, nutrition, health services, and preschool education through Anganwadi centres.
  • Targets children (0–6 years), pregnant women, and lactating mothers.
  • Provides supplementary nutrition, immunization, health check-ups, and preschool education.
• POSHAN Abhiyaan (National Nutrition Mission): Focuses on reducing stunting, undernutrition, and Anaemia among women and children.
  • Promotes behavioural change, use of technology (POSHAN Tracker), and convergence of health and nutrition services.
• Mission Shakti: Umbrella programme for women empowerment and safety.
  • It includes schemes supporting childcare services and economic empowerment of women.
• Palna Scheme (National Crèche Scheme): It provides day-care facilities for children aged 6 months to 6 years.
  • It offers nutrition, health care, and early learning support, helping mothers participate in the workforce.
  • Operates under Mission Shakti with Centre–State funding support.

Challenges in Implementing Care Economy Reforms

• Fiscal Constraints: Expanding care infrastructure and workforce training requires substantial public investment and long-term financial commitment.
• Social Attitudes Towards Care Work: Caregiving continues to be viewed as a private family responsibility rather than a public policy concern. Deep-rooted patriarchal norms limit recognition of unpaid care work.
• Weak Regulatory Capacity: Ensuring quality standards and monitoring care institutions across India remains administratively challenging.
• Lack of Skilled Care Workforce: India faces a shortage of professionally trained caregivers, especially in eldercare, disability support, and early childhood care.

Way Ahead

• Recognise Care as Essential Social Infrastructure: Policymakers should treat care services as a core component of economic and social infrastructure similar to education and healthcare.
• Increase Investment in Care Services: India should substantially increase public investment in childcare centres, eldercare facilities, rehabilitation centres, and community support systems.
  • Care policies should be aligned with labour reforms, gender budgeting, and women’s empowerment programmes.
• Improve Data Collection and Measurement: India should strengthen time-use surveys and statistical frameworks to estimate the economic contribution of unpaid care work.

Source: TH