World Bank Backs $150M Program to Boost Women’s Employment in Tamil Nadu

In a landmark move to advance gender equity and strengthen economic participation, the World Bank’s Board of Executive Directors has approved a $150 million loan to support the Tamil Nadu Women Employment and Safety (WESAFE) Program. This transformative initiative aims to improve access to quality jobs and increase female labor force participation (FLFP) for 1.6 million women across Tamil Nadu—one of India’s most economically dynamic and progressive states.

Tamil Nadu already has one of the highest female labor participation rates in India, but the gap between male and female participation remains stark—a 32 percentage point difference. With the state aiming to become a $1 trillion economy by 2030, addressing gender disparities in employment is not just a moral imperative, but also an economic necessity.

Program Focus: Jobs, Safety, and Empowerment

The WESAFE Program, backed by the International Bank for Reconstruction and Development (IBRD), is structured to address both supply-side and demand-side constraints that limit women’s engagement in the workforce. Key features of the program include:

1. Skill Development and Career Readiness

• 600,000 women will receive training and career support, equipping them with the skills needed in high-growth sectors such as electronics, automotive, IT services, and manufacturing.

• The program will emphasize non-farm employment, steering women away from informal or agriculture-based jobs toward more formal, better-paying opportunities.

2. Support for Women Entrepreneurs

• 18,000 women entrepreneurs will benefit from business incubation, mentoring, and access to early-stage finance.

• Specialized schemes will promote innovation and scalability among women-led startups in urban and semi-urban areas.

3. Enabling Infrastructure and Safety Services

• Expansion of safe hostels, already established under earlier World Bank partnerships, to include crèches, elderly care centers, and women-only transport options.

• Introduction of helpline services and anti-harassment mechanisms to protect women from abuse and discrimination in workplaces and public spaces.

Institutional and Policy Strengthening

The program will also focus on building institutional capacity and governance frameworks that support gender-inclusive growth. Some of the core areas include:

• Launch and implementation of the Tamil Nadu Women’s Policy, creating a comprehensive blueprint for advancing women's rights and economic opportunities.

• Establishment of a common results framework to track FLFP and women’s entrepreneurship outcomes.

• Development of a regulatory environment conducive to investments in women-led enterprises and women-friendly infrastructure.

“This Operation will help women meet their aspirations of participating in the workforce and contributing to Tamil Nadu’s one trillion-dollar economy goal,” said Auguste Tano Kouame, the World Bank’s Country Director for India.

Public-Private Collaboration and Access to Finance

One of the innovative aspects of WESAFE is its push for collaboration between the public sector, private companies, and industry associations:

• The program will support partnerships with private firms, industry bodies, and institutes of excellence to develop affordable and quality housing, safe mobility, and workplace support systems for female employees and students.

• A state-level platform will be established to promote access to finance for women, backed by private capital.

• Awareness campaigns and financial literacy programs will help women take advantage of loan guarantee schemes, micro-grants, and credit-linked initiatives.

“This Program will support collaboration with industry associations, institutes of eminence, and private organizations to strengthen access to housing and mobility for women workers,” added Muderis Abdulahi Mohammed and Pradyumna Bhattacharjee, Task Team Leaders for the Program.

A Long-Term Commitment to Gender Equity

The $150 million loan from IBRD has a 25-year maturity with a 5-year grace period, reflecting the World Bank’s long-term commitment to supporting inclusive development in India.

By tackling multiple barriers—from inadequate skills and limited financial access to concerns about safety and mobility—the program takes a holistic approach to transforming the female workforce landscape in Tamil Nadu.

It also complements national and state-level initiatives such as:

• Skill India Mission

• Startup India

• National Rural Livelihoods Mission

• Tamil Nadu’s Vision 2030

The project is aligned with the UN Sustainable Development Goals (SDGs), especially Goal 5: Gender Equality and Goal 8: Decent Work and Economic Growth.

Tamil Nadu: A Model for Women-Inclusive Growth

As India’s economy grows and urbanizes, Tamil Nadu’s proactive approach could serve as a replicable model for other states looking to reduce gender gaps in employment and stimulate inclusive, sustainable economic development.

By addressing both the barriers and enablers of women’s employment in a structured, scalable manner, the WESAFE Program lays the groundwork for a more resilient, equitable, and prosperous future for Tamil Nadu and beyond.