Cross-border Trade: Women can make India leap forward

The cross-border trade ecosystem in India does not include enough women? 

Women who are a part of India’s export and import value chains are typically confined to the lower levels of production and manufacturing, and virtually excluded from higher levels of trade value chains, policymaking positions, and the executive suite. This is important because India could add US$770 billion to its GDP by 2025 just by offering equal opportunities to women. (Mckinsey)

It is been observed that women in general are concentrated in the lower levels of trade value chains, with only a limited presence in production and manufacturing and almost none in areas such as research and development, marketing, or distribution. Mainly because India is a patriarchal society, and women in India really have to make an effort to make their presence felt. Whereas overlooking the data, we have come to realize that gender equality is pertinent for countries growth. And it holds true for trade related interventions too, gender equality not only spurs country competitiveness, but also helps obtain better outcomes.

Coming on to facts, women lead just 15% of businesses engaged in international trade, according to estimates. It seems, that this imbalance in international trade is one of many inequalities that comprise a global gender gap that will take another 131 years to close at the current pace of policy reform, according to the World Economic Forum (WEF), knowing for a fact that closing the gender gap in trade will benefit businesses and entire economies.

Nonetheless, there are various reasons for women not being able to make their mark, educational attainment, health and survival are of utmost important. Whilst political empowerment, and economic participation and opportunity are more persistent. Trade falls under the economic participation and opportunity gap. It’s a gap that impacts women as consumers, workers and entrepreneurs.

Going through various researches, we realize that in the companies where both men and women vie for formal employment, a company which is integrated in global value chain, two third of these positions go to men, according to World Bank. Women struggle to gain the professional recognition they deserve at times because of their age. They also face challenges such as access to finance, balancing career aspirations with domestic responsibilities, a recent government survey showed that Indian women spend 8.4 times as many hours on unpaid work as men. Globally the average ration is about three to one. Bribe demands or unwanted sexual encounters as they seek the necessary permits and paperwork too are major hindrances.

However, the good news is that correcting the global gender gap in trade is beginning to gain traction among policymakers. Whereas, turning a sharper lens on gender issues could also help to scale up women-owned small- and medium-sized enterprises (SMEs), adding long-term value to their organizations.

So, what is the best way to begin involving more women in trade? A good place to start is trade facilitation, World Bank says, it’s the simplification modernization and harmonization of export and import processes. Their surveys show that trade facilitation disproportionately benefits women’s entrepreneurship and employment in trade-related services sectors across emerging economies.                                                        

To make the most of trade as a catalyst for equality, women must be heard at all levels, be it as founders and CEOs of trade related businesses or as employees in trading firms. Women also must be represented across different job roles and functions of trade – be it as traders, customs house agents, freight forwarders, or customs brokers.

They must often travel, meet with exporters (who are predominantly male) and work long and unpredictable hours.

As more states consider practical steps to accelerate change, some regions have taken leading roles. Henceforth, let’s embrace the change which starts from mind and invite women to industry associations and creating the time and opportunity to talk, and let’s ensure that women have a voice and gain from trade.

To this effect, India SME forum with Ministry of MSME has already taken a leap and have started a Women Exporters Program (which is in its second phase) dealing with these issues. Out of these many of them have started to successfully export their products to US and EU. And each of them have a story to tell.

One of them being Moutushi Roy, who owns Svojaas Fashion, started her own business selling scarves and jewelry as a side hustle. Only two years later, she had made it her full-time occupation. “I didn't know how to ship products, manage documentation, business terms and conditions, or even how to buy insurance for my products. The WEP has sharpened my business skills and given me a 360-degree perspective about my business, “says she.