The exclusion of the LGBTQ people from participation in society has a long history and
is a violation of human rights recognized by various national as well as international bodies.
Studies by international institutes concluded that human rights violations experienced by
LGBTQ people diminish economic output and cost humongous numbers to the Economic
capacity of the country. The impact of exclusion can be studied both at the microeconomics
and the macroeconomic level.
LGBTQ people are targets of violence, bullying, and discrimination. They are denied access
to education and are discouraged from pursuing jobs. Hence, their contribution to the whole
economy reduces holding back the advancement of the national economy. This exclusion
leads to a low standard of living for the community, which further leads to a low level of
income, consumption, and aggregate demand. Thus, the economy enters into a vicious cycle
which in due course results in a low level of the country's GDP.
The economic cost of homophobia in India is 0.1% to 1.7% of the GDP calculated at $30.8
billion. According to a report released by the LGBTQ foundation, if the LGBTQ community
was a country, it would be the world’s fourth-largest economy. India is not the only country
bearing the cost of homophobia. Other 71 countries criminalize same-sex relationships and lose a portion of their GDP. The exclusion costs more to the developing countries since they lack skilled human resources and anti-gay laws exclude the experienced LGBTQ people from utilizing their potential.
Today, all the major economies are globalized and there are numerous opportunities in the
world. Countries that have strict discriminating laws such as anti-gay laws, experience
emigration of skilled and talented human resources. 61% of the African countries criminalize homosexuality and lose 10.8% of its highly educated youth to OECD countries, while 92.7% of Guyana’s highly refined youth emigrate to OECD countries. According to the report published by the William Institute, an anti-discriminatory law can add up to USD 1,763 in the GDP per capita for emerging economies. We can say that the economic development in emerging economies surfaces with LGBTQ rights; therefore, liberal emerging economies promoting LGBTQ rights have a higher per capita income.
The Government of India is striving to achieve the target of USD 5 trillion economies but lacks
adequate policy measures for inclusiveness. GOI, in its policy measures, should include and,
eventually, implement the concept of the Pink Economy.
In the Pink economy, there is systematic inclusion of the LGBTQ community. For instance,
the addition of the LGBTQ community-owned bars, nightclubs, and restaurants in society.
LGBTQ tourism and specialized culture consumption are still untapped opportunities, and
Indian businesses have the chance to make profits out of it. This strong positive concept
could lead to more open appeals to LGBTQ consumers in India. Multinational companies
have various diverse inclusion policies and campaigns for inclusiveness at an international
level but don’t abide by them in India because of their prejudice and anti-gay laws.
The times are changing and India is progressing, especially after the landmark decision of the supreme court which scrapped Section 377 of IPC. This decriminalization has opened a lot of new doors for the people of the LGBTQ community as more and more people are coming out and are joining the workforce with pride. The decriminalization of homosexuality in India has led to a significant economic change within the country, especially regarding the growth of international businesses in India. Now, there are several restaurants run by transgender people. While same-sex marriage is still illegal in India, the legalization of same-sex intercourse is a monumental step in the movement towards total inclusivity.
The policies of the Government of India should be inclusive, and the steps should encourage the concept of the Pink Economy to reduce the economic cost of homophobia in India. Homophobia has cost us billions of dollars and total inclusivity will make sure that our economy does not suffer because of the orthodox prejudice and laws.