Financial Independence: How women are increasingly taking financial decisions

However, more conversations are needed around this topic for Indian women to reach true financial independence. They still face difficulties, as many men around them may not be comfortable with this shift in mindsets.

With changing dynamics, women no longer rely solely on their spouses for financial decisions. The rising divorce rates and women's longer life expectancy necessitate financial autonomy.

An encouraging 98% of salaried and self-employed Indian women actively participate in long-term family decision-making. In fact, the finding reveals about 47% of them make independent financial decisions, a reflection of women’s growing financial autonomy.

Financial independence for women is not just about earning money but also about how to manage it wisely. Taking advice from a financial consultant can help women explore investment alternatives, savings, and debt management strategies.

Many women are achieving financial independence by becoming entrepreneurs and creating opportunities for themselves and for their community as well. Women are also pursuing higher education.

According to the National Centre for Education Statistics, women now hold more doctoral degrees, master and bachelor degrees compared to men.

Higher education helps women earn more and achieve financial literacy to understand complex financial concepts such as tax, credit, retirement planning, loans etc.

Today, whether creating a budget or in mutual funds, stocks, bonds, or other assets, women now, for equal access to financial services and protection and equal financial rights to achieve a sense of ownership and independence.

Here, women are now using online tools to develop and implement financial plans. Such plans include budgeting, saving, and investing. Women are using their financial planners to manage their Provident Fund and invest in diversified stocks, bonds, mutual funds etc. They are also working towards reducing debt.

Several government programmes have also been established to encourage economic security and education for women.

It’s heart-warming to witness the growing involvement of women in financial decision-making, reflecting strides towards financial independence. In India, this shift is particularly evident in metro cities.

However, progress remains gradual, especially in rural areas where many women still rely on men for financial support and advice. According to the World Bank, India has one of the lowest female labor force participation rates globally, with less than a third of women engaged in the workforce.

Empowering women through education, access to financial aid, mentorship programs, and policies promoting gender equality in the workplace are all vital steps toward fostering their financial independence.

Studies show that the female labour force participation rate in India has seen a gradual increase from 21% in 2001 to 37% in 2023. This indicates that women are not merely joining the workforce but reshaping it.

The data speaks volumes – Indian women now command a substantial part of the nation's wealth, underscoring their growing influence in financial decision-making. Other projections indicate that if women comprise over half of the new workforce by 2030, India could achieve an impressive GDP growth rate of 8%.

Thus, fostering women’s financial autonomy not only benefits them but also holds remarkable potential for national economic advancement.

This trend is more than a statistical revelation; it evidences the resilience and potential of Indian women. Their soaring aspirations to entrepreneurship mirror a deeper commitment to financial savvy and independence.

The surge in women’s financial independence is a powerful reflection of evolving societal norms, improved educational access, and expanding career horizons.

As we navigate this transformative era, our duty is to champion and empower the women steering this financial revolution. By nurturing their aspirations we prepare for a future where women not only participate but lead, contributing significantly to India's economic landscape.

The trajectory is promising, and with continued support, the impact of women in shaping our financial future will undoubtedly flourish in the years ahead.

(The author is Director at Master Capital Services Ltd)

(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)