Monday, June 23, 2025

Economic Survey 2025: States must ease curbs on women in factories

Date:

New Delhi: The Economic Survey 2024-25 pressed for relaxing state-level curbs against women participating in some factory jobs, and building adequate safeguards against arbitrary administrative action.

The Survey tabled in Parliament on Friday said that many states prohibit women from various factory processes. The 10 most populous states collectively impose 139 prohibitions on women in specific factory processes considering them to be dangerous, but inter-state comparison and scientific literature show that these prohibitions are enforced without evidence of special health risks to women workers.

No scientific basis

“For example, some states allow women to participate in abrasive blasting used to clean metal surfaces, but others prohibit women from participating in the same process. Similarly, women are prohibited from participating in any process to manufacture lead or its compounds. However, scientific literature indicates that lead is not likely to pose special health risks to women,” the Survey said.

“These prohibitions exclude women from high-paying jobs, making the prohibitions counterproductive,” the Survey noted, while pitching for reforms and deregulation.

Need for safeguards

The Survey also made a case for adding safeguards to reduce chances of arbitrary administrative action by states. It highlighted that Indian regulations do not require states to adhere to certain procedural safeguards while pursuing punitive action. For example, many states do not require departments to issue detailed show-cause notices, allow representations by the accused person, or issue reasoned decisions before sealing or demolishing buildings, the Survey said.

Guaranteeing procedural safeguards by law can reduce legal risks to investments and job creation, encouraging rapid growth, the Survey said.

Electricity for industrial users

The Survey also proposed reducing the electricity tariff mark-up for industrial users. States impose a steep premium on the sale of electricity to industries to cross-subsidize individual consumers. This high mark-up discourages industries from formally operating and growing over time, the Survey said, adding that, across states, industrial users can pay a 10–25% mark-up over the cost of electricity supply. High energy costs make Indian businesses less competitive, the Survey pointed out.

The Survey also proposed a bigger role for private parties in building approvals and inspections. Indian states give private parties limited opportunities to participate in enforcement processes for building safety, which limits the states’ ability to enforce regulations and encourage compliance.

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