India To Create First Public Sector Bank Only For Women

Getty ImagesIndia revealed its budget for FY13 - 14 and it largely disappointed foreign investors and is expected to not do much to revive flagging economic growth.

But the budget is trying to tackle gender issues.

The finance minister P Chidambaram's budget includes a plan to set up the country's first public sector Women's Bank with Rs. 10 billion in capital (approx $183 million).

"This Women’s Bank will lend funds to women, women run businesses, women SHGs [self help groups] and will employ predominantly women and be functional from October 2013 ."

India has the second largest workforce in the world that totals 478 million, but women only account for 24 percent of it, according to a report from the Center For Strategic & International Studies.

It also ranks 113th of 135 countries in the World Economic Forum's Gender Gap Index.

The report also cites Lakshmi Puri of UN Women who said in 2011 that "India's growth rate could jump by 4.2 percent if women were given more opportunities".

With India's economic growth at 10-year low this might not be the worst idea, but it depends on how effectively it is managed.