On 14 May 2026, the SAARC Secretariat and UN Women concluded a ministerial dialogue in Kathmandu titled TransformCare South Asia. This event marked the first time the Care Economy was positioned as a core strategic pillar for subregional cooperation. Member States, including India, reached a consensus on the need to transform care systems to unlock women’s economic potential, addressing the disproportionate unpaid care responsibilities that currently limit women’s access to leadership and employment.
Unlocking GDP and Job Potential: The dialogue highlighted that South Asia has one of the lowest Female Labour Force Participation Rates (LFPR) globally. Experts noted that closing this gender gap could increase the region’s GDP by up to 51 per cent. Furthermore, the care sector was identified as a powerful engine for employment, with the potential to create two to three times more jobs than equivalent investments in traditional sectors like construction.
Regional Action Plan and Financing: A primary output of the meeting was the formulation of a Zero Draft Action Plan for Transforming Care Systems in South Asia. This plan focuses on coordinating policies, infrastructure, and decent job creation. Supported by the TransformCare Investment Initiative, the framework seeks to unlock Blended Financing approaches to ensure accessible and affordable care services while improving the working conditions of paid care workers across the region.
Key Highlights
Regional GDP Boost: Potential for a 51 per cent increase in total GDP.
Job Multiplier: Investment in care generates 2 to 3 times more jobs than construction.
Formalization Milestone: The creation of a Zero Draft Action Plan for systemic reform.
Institutional Support: Technical assistance provided through the UN Women Knowledge and Partnerships Centre.
What is the "Care Economy"?
The care economy refers to the sector of the economy responsible for the provision of care and services that contribute to the nurturing and well-being of people, including childcare, elder care, and healthcare. It includes both unpaid care work, traditionally performed by women within households, and paid services in the formal market. Transforming the care economy involves recognising, reducing, and redistributing unpaid work while rewarding and representing paid care workers through professional standards and state support.
Policy Relevance
Macroeconomic Growth Strategy: Shifting unpaid care to professional systems is a direct driver for India’s Viksit Bharat 2047 vision, potentially contributing to a 51 per cent regional GDP expansion.
Infrastructure for "Time Poverty": The roadmap incentivizes the creation of Care Infrastructure, such as community crèches and digitized care services, which are essential to freeing up the time of Indian women for formal employment.
Employment Generation: Leveraging the 2 to 3 times higher job creation potential in the care sector helps India address youth and female unemployment more efficiently than traditional infrastructure-heavy models.
Regulatory Leadership: By participating in the Zero Draft Action Plan, India can set the subregional standards for Decent Work and social protection for the millions of domestic and care workers in the informal economy.
Relevant Question for Policy Stakeholders: As India aligns its domestic "Mission Shakti" with the SAARC "TransformCare" roadmap, how can the Ministry of Labour and Employment standardise "Care Work" as a distinct industrial category to enable better wage protection and social security?
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