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Opinion Childcare isn’t just a social safety net. It’s a lever for growth

The drag on productivity is hiding in plain sight, in homes where millions of mothers scale back or exit work because childcare is unaffordable or inaccessible

Childcare, the growth lever that can’t be ignoredEnabling full-day childcare services through physical Anganwadi centres and crèches is critical, especially in industrial belts, service hubs, and urban wards with high female employment potential
Written by: Arti Ahuja, Utsav Kheria
4 min readDec 11, 2025 08:12 AM IST First published on: Dec 11, 2025 at 08:11 AM IST

Infrastructure has long been the backbone of India’s growth story. Yet the 8-10 per cent growth ambition will stall if we ignore the “soft” infrastructure that frees up the time and talent of half the workforce. Childcare must shift from being seen as a “safety net” to a “springboard” for growth, productivity, and human capital.

The drag on productivity is hiding in plain sight, in homes where millions of mothers scale back or exit work because childcare is unaffordable or inaccessible. Reliable childcare facilities would allow women to work consistently in jobs that match their skills and aspirations.

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Some states show what is possible. The five southern states account for almost three-fourths of women in manufacturing. They have invested in social infrastructure that enables women to work, from childcare support to hostels to free public transport.

Global evidence reinforces how childcare augments maternal employment and women’s productivity. In Vietnam, where gender parity in the workforce was already high, more childcare did not raise participation but improved job quality, as more women moved into formal employment and stayed longer in the workforce. In Rio de Janeiro’s urban slums, free childcare for low-income families increased mothers’ working hours almost exactly in line with daycare hours.

The way forward must be a hybrid model: Brick-and-mortar centres complemented by digital technology that extends early stimulation into the home environment. Enabling full-day childcare services through physical Anganwadi centres and crèches is critical, especially in industrial belts, service hubs, and urban wards with high female employment potential. In Tamil Nadu, adding a half-time worker for preschool education doubled instructional time while sustaining nutritional outcomes. Para-professionals from self-help groups, nursery teacher-training institutes, or local youth can be mobilised to support Anganwadi workers, as Meghalaya has shown through short-term fellowships and Chandigarh through internships. Anganwadi hours can be extended to convert the centres into full-day facilities in a fairly low-cost way, by increasing the Anganwadi workers’ stipend as done in Telangana.

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Support in the first 1,000 days of a child’s life is equally vital. Nearly 80 per cent of brain development occurs during this period. Infants spend this time primarily at home, where early stimulation through simple exchanges with parents nurtures this neural base for lifelong learning. While excessive screen time is inadvisable for children, digital tools for parents can play a constructive role. Bite-sized media and personalised nudges can help turn daily routines into learning moments: Narrating steps while cooking or pointing out colours on a walk. Equally powerful are digital communities like WhatsApp groups, where parents share experiences. In Odisha, a study showed that weekly mothers’ group sessions improved children’s cognitive and language skills almost as much as one-on-one home visits. Peer learning, supported by digital tools, can be cost-effective and impactful. The government is providing early learning guidance for parents and caregivers through Poshan Tracker.

To move childcare to the mainstream, and treat it as market-shaping infrastructure, India needs an institutional anchor. A National Mission on Early Childhood Care could unite the ministries of Women and Child Development, Labour, Education, Health, and Industry to align child welfare with childcare initiatives to improve women’s workforce participation.

In terms of demographics, the time is now. Fertility rates in several states are below replacement. By 2050, one in five Indians will be over 60. Without stronger support for women’s labour and children’s learning, the demographic dividend could turn into a deficit: Fewer children, with poor capabilities, and too few productive workers.

With the government setting direction, business driving innovation, and civil society ensuring last-mile reach, India can unlock the full potential of its women and provide every parent with the assurance that their child is safe, nurtured, and learning.

Ahuja is former Union Secretary, Labour and Employment. Kheria is co-founder, Rocket Learning

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