Care Economy

13/06/2026

27 3 minutes read

Care Economy encompasses all paid and unpaid activities that are related to the care of children, elderly, persons with disabilities, sick and other dependent groups.
The role of care in human development, labour productivity, social welfare and economic growth is a central component of today’s economies.
According to the International Labour Organisation (ILO), increasing investments in the care services sector could generate 475 million jobs globally by 2030.
Public spending of 2% of GDP on care services could generate 11 million jobs for India, of which almost 70% would go to women.

The types of unpaid care work are:
- Childcare
- Elderly care
- Take care of disabled individuals
- Cooking and cleaning
- Household management
- Caring for sick family members
They are important activities for family welfare and social reproduction, yet are underutilised in terms of economic calculations.

Paid care work includes care services that are given for pay by:
- Doctors and nurses
- ASHA workers
- Anganwadi workers
- Domestic workers
- Childcare providers
- Social workers
- Caregivers and attendants
These will form an integral component of India’s social and economic infrastructure.

CBT services may consist of:
- Self-help groups (SHGs)
- Community health workers
- Welfare programmes
- Local support networks
These services are provided to vulnerable populations and are in addition to services that are provided by the family.

Demographic Transition
- The ageing population in India is growing at a fast pace.
- The increasing life expectancy has led to a demand for long-term care and health care.
Urbanisation and Migration
- A joint family system is under stress due to the fast Pace of Urbanisation.
- When families are split by migration for work, they may have no informal care support.
Rising Female Workforce Participation
- Increasing participation of women in the labour force has created greater demand for organised childcare and caregiving services.
- Care services are accessible, allowing women to have an education and employment.
Growing Health and Disability Needs
- A growing number of chronic diseases and disabilities has led to a greater demand for specialised care services.

Promotes Gender Equality
- Eliminates the inequitable burden of unpaid care labour on women.
- Promotes women’s economic involvement and empowerment.
Generates Employment
- Provides a big job opportunity, especially for women.
- Encourages growth in service sector that requires labor.
Enhances Human Capital
- Promotes child development, improved learning, nutrition and health services for children.
- Supports productive activity in the long-term.
Supports Inclusive Development
- Maintains dignity and support of children, elderly, persons with disabilities and vulnerable populations.

- - Umbrella programme for women’s safety and empowerment.
  - Promotes women’s role and child care.

Fiscal Constraints
- Increasing the provision of care needs a considerable amount of public money.
- Long-term funding is required.
Social Attitudes towards Care Work
- Caregiving is considered to be a private family responsibility.
- Norms that constrain recognition of unpaid care work are patriarchal norms.
Weak Regulatory Capacity
- Quality monitoring at care institutions is still difficult.
- The need for strengthening and upgrading of regulatory frameworks.
Shortage of Skilled Workforce
- India lacks skilled manpower in the following areas:
  - Eldercare
  - Disability support services
  - Early childhood care
  - Community healthcare
Informalisation of Care Work
- Several care workers are not formally employed under a contract.
- Poor working conditions and low wages lead to low retention rates in the workforce.

Recognise Care as Essential Social Infrastructure
- Care services should be given the same priority as healthcare, education and physical infrastructure.
- Enable care to be integrated into national development planning.
Increase Public Investment
- More funding should be provided for:
  - Childcare centres
  - Eldercare facilities
  - Rehabilitation centres
Community support systems
- Ensure access to good quality career pathways for the Care Sector.
- Increase professional training programmes.
- Increase wages, working conditions and social security.
Incorporate Care into Gender Budgeting
- Ensure that care policies are in line with:
  - Labour reforms
  - Women’s empowerment programmes
  - Gender-responsive budgeting
Improve Data Collection
- Increase the quality of Time Use Surveys.
- Estimate the economic value of unpaid care work.
- Integrate care work into policy-making and national accounts.