Women’s workforce participation has gone from 23.3% in 2017-18 to 41.7% in 2023-24 (Source: PLFS). While the Indian government is making sure that women in India feel safe, empowered, and encouraged to participate in the workforce, many measures need to be taken to remove the disparities already in place.
Here we are discussing the infamous ‘Pink tax’. Usually, the colour pink symbolises unconditional love, politeness, harmony, and femininity, but not in this case! Pink in ‘Pink tax’ is associated with disparity and bias, an expensive price to pay as a woman consumer in India.
Some say that the pink tax is only a manifestation of the convergence of gender inequality, while some call it a profit-maximising technique to exploit women’s interests and behaviour.
In this blog, we uncover the meaning and examples of the pink tax, common reasons for their existence, and tips to avoid these.
Let’s explore!
What is a pink tax in India?
A Pink tax is an extra surcharge or price for a similar product category, paid by a woman compared to a man! This tax is not a legal tax paid to the government, rather it is an alleged markup that is often seen on products that are specifically targeting women, typically in pink and feminine packaging concepts.
This disparity is often seen in products where the female version, say a pink-coloured product, is more expensive than an equivalent normal packaging product that targets men. Although this price differential may not be a lot, it still highlights the inequalities and gender disparity challenges in our society.
Let us see some products and services that contribute to this inequality.
Examples of pink tax in India
The phenomenon of pink tax is commonly seen in personal care products. While there is not much information available in research reports, there are plenty of surveys in India that point out the differences in prices faced by women.
Let’s check out the Maximum Retail Prices (MRP) for some common products.
| Product | Brand Name | MRP for Women marketed product | MRP for Men marketed product |
| Razor | Gillette | ₹475 | ₹275 |
| Deodorant 200ml | Nivea | ₹318 | ₹275 |
| Average Hair cut | Jawed Habib | ₹299 | ₹499 |
The prices listed above reflect comparable products/services targeted at men and women. The attributes and benefits of these products are essentially the same. However, products marketed toward women are priced at least 15% higher.
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Common reasons for pink tax
Many factors influence the existence of this Pink Tax in India and globally.
- Gender-based marketing: Producers may market products in a way that exploits women’s psychology, shopping preferences, and lifestyle choices to maximize profits. Gender-based pricing is a common profit-maximising method to charge women more for their detailed buying choices, shopping habits, and market trends. The goal is to use the correct marketing techniques to profit from women’s societal insecurities.
For example, labelling a regular face wash as ‘For a refreshing glow’ attracts women more than men.
- Women’s increasing purchasing power: As women’s workforce participation increases, so does their purchasing power. This increased purchasing power further motivates manufacturers to sell products that women are more likely to buy. For example, many personal appliance brands now cater to ‘working women essentials’ with products like ‘on-the-go hair straighteners/curlers.’
- Cost of production: Some manufacturers argue that producing the same product for women costs more due to higher production expenses. They claim women often pay extra for the product’s design and aesthetic appeal. For example, a women’s razor might feature more vibrant colors and come in more expensive packaging.
- Modified packaging: Companies make sure they package their products in pink or shades of pink to attract women. This is the most common way of charging the pink tax.
- Limited awareness of ‘Pink Tax’: In India, the majority are still unaware of this concept of pink tax. This lack of awareness further aggravates the issue. Up to 67% of people in India had not heard of the ‘Pink Tax’. The public widely came to know about it in 2018 when there was heavy protesting against the government-imposed 12% GST (Goods and Services Tax) on sanitary napkins, called a ‘tampon tax’.
- Women are willing to pay more: Some women are willing to pay more for products they believe are unique or specially designed for them. This mindset allows businesses to profit by charging a premium for items marketed to women, even when the products themselves are essentially the same as men’s.
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How to avoid the pink tax in India?
Let’s look at the necessary steps that can be taken to avoid the pink tax in India
- Identify overpriced products: The very first step that needs to be taken is to identify and characterize products that are marked up for women. Look for pink packaged products or women-friendly labelled products. The main difference in these products usually lies in their packaging and design. Essentially, the product may completely be the same, down to the list of ingredients!
- Spend wisely: Make wise purchases instead of impulsive ones so that marketers cannot exploit you! The best approach is to review the product’s usage and assess its necessity. Next, compare prices across different products. If you find a more affordable option that can solve your problem, choose that.
- Embrace unisex products: There may not be a distinction between men’s and women’s products. It may just be a marketing move to lure women in. To avoid this, consider opting for unisex products and challenge the idea of gender-specific products.
- Spread awareness: The real challenge is to educate women on the prevalent inequalities. It is vital to spread awareness on the ‘pink tax’ which often goes ignored by women too! Women shouldn’t have to pay more due to the marketing gambits involved in promoting a product. The more aware women are, the less effective this pricing strategy will be.
- Support home-grown ethical brands: These home-grown and ethical brands are likely to be inclusive and would eliminate gender-based price discrimination.
Tax and other benefits for women in India
Despite the existence of the pink tax, other taxes, loans, and business benefits are extended to women:
The Union Budget 2025 focused on significant developments in women’s empowerment.
- Women can pay a lower stamp duty in property registration of a property as sole owner or a joint owner, across some states in India.
- Additionally, women who pay for the education of their children can claim a deduction for the tuition fees, under section 80C.
- Even in the MSME (Micro, Small, and Medium Enterprise) sector, a new scheme aims to provide up to ₹2 Crores term loans to 5 lakh first-time women, scheduled castes, and scheduled tribe entrepreneurs.
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Conclusion
The only question is, “Is it fair to pay extra just because you are a woman?” The answer is no! Cultural stereotypes, along with a lack of awareness and certain lifestyle habits in women, tend to fuel the problem.
Women must be more aware of this inequality to make informed buying decisions instead of impulsive ones!
