In a country like India, where gender equality remains a pressing challenge, the financial gap between men and women is not just about income, it's also about expenditure. According to a 2024 IIM-Ahmedabad survey, men spend an average of ₹2,484 on e-commerce platforms, while women spend ₹1,830. Yet, paradoxically, this difference hides a deeper inequality. Women, who earn significantly less, often end up paying more for similar products, a phenomenon known as the ‘pink tax.’
The Gender Pay Gap: An uneven playing field
The World Inequality Report underscores the financial disparity, Indian men earn 82% of the total labour income, while women make up only 18 per cent. Despite contributing immensely to the economy and household responsibilities, women consistently earn less across sectors and job roles. This wage gap isn't just a number; it translates into reduced purchasing power, limited financial independence and long-term economic insecurity for millions of women.
Understanding the pink tax
The pink tax refers to the extra amount women pay for products and services marketed specifically to them. From razors to shampoos, clothes to healthcare, similar products often come with a higher price tag when targeted at women. What’s more troubling is that these products are sometimes identical to their male-marketed counterparts differing only in packaging and color.
In India, where pay parity is still emerging, the implications of the pink tax are even more severe. Women who already earn less end up spending more for basic needs, deepening the cycle of financial inequality.
Social conditioning and market biases
The roots of this issue lie in deep-seated societal and market biases. Brands often assume that women are more willing to pay for personal care and appearance-related items, leveraging stereotypes to justify inflated prices. Additionally, traditional gender roles that expect women to invest more in grooming and presentation feed into this pricing disparity.
Policy, Awareness and Equality
Addressing the pink tax in India requires a multifaceted approach:
Policy Intervention: Government regulation to ensure gender-neutral pricing can help protect consumers from unjustified price hikes.
Consumer Awareness: Educating buyers to recognize and challenge discriminatory pricing is crucial.
Corporate Responsibility: Brands must commit to fair pricing strategies that do not exploit gender norms for profit.
Challenging Deep-Rooted Inequities
The pink tax is more than just an economic burden; it's a reflection of how society undervalues women. Tackling this issue is essential for building a more equitable India. Until then, half the population will continue to bear a disproportionate financial brunt, simply for being women.
