India Plans New Policy On Caregiving Economy To Boost Employment
The NITI Aayog is set to recommend steps to formalise India's caregiving economy to boost employment.
The NITI Aayog is set to recommend steps to formalise India's caregiving economy to boost employment, according to two government officials.
The government's think tank, in partnership with the International Labour Organization, will be preparing a report with suggestions, said the officials who spoke on the condition of anonymity as they are not authorised to speak to the media. The Ministry of Labour will use the proposals to draw up a plan for the sector to create new jobs, they said.
The report is likely to be completed by the end of July, said the first official.
The proposed policy underscores the need to protect and also create more jobs as unemployment rises in the country. According to the Centre for Monitoring Indian Economy, India's unemployment rate rose to an eight-year high of 7.83% in April this year.
Care economy defines paid and unpaid child and elderly care, and covers domestic helps, and anganwadi and ASHA healthcare workers in India.
Covid-19 has further established the importance of caregiving, said the second official quoted earlier. With time, he said, demand in this sector will rise further and the new policy targets to formalise the sector along with creating new opportunities.
Emailed queries to the Ministry of Labour and Employment, and NITI Aayog remained unanswered.
Potential For Growth
The opportunity in the caregiving economy is huge.
According to a report by the ILO, there are up to 80 million domestic helps in the country, mostly women.
The home healthcare market currently stands at $5.4 billion and is expected to grow to $19.9 billion by 2025, according to a study by the industry lobby Nathealth released last month. "Traditionally, 60-80% demand for home care has been driven by senior citizens seeking supportive long-term care at home,” the report said.
According to a 2021 National Statistical Office report, India's population above 60 years is likely to spike by over 40% in a decade to cross 194 million in 2031.
That nation already has a large population of elderly who need help with daily activities, and cities do not have the concept of joint families anymore, said the second official quoted earlier.
The Indian childcare market was pegged at $3.48 billion in 2020, according to private market researcher IMARC. It expects the market to grow at an annualised rate of 12% over 2021-2026.
It's not just India that is focusing on the care industry. The American Jobs Plan unveiled by U.S. President Joe Biden in March last year allocated $400 billion for construction of affordable homes for elderly care and $25 billion for government childcare centres.