Using unit-level data from the National Sample Survey (NSS) and the Periodic Labour Force Survey (PLFS), and state-wise macro level data, this chapter shows how a reduction in female work participation could cause a growth penalty. The main findings of the paper suggests that a reversal of structural transformation, during post Pandemic years cause an increase in women work participation in agriculture and non-farm jobs sectors, as Unpaid Family Labour (UFL). However, both static and dynamic (GMM) panel regressions, suggest that female labour force participation significantly drives per capita GSDP as well as the sectoral output and employment shares respectively, in a dynamic setting. Based on these results it is argued that India’s policies should target both gender and sectoral dimensions. Together, these measures can promote inclusive growth and structural transformation, leveraging women’s labour force participation as a key engine of sustainable economic development.