India's Working Women's Hostel Scheme, launched in 1972 and revised as Sakhi Niwas in 2017, faces a severe capacity shortage despite addressing a critical need. According to RTI data from the Ministry of Women and Child Development obtained by BehanBox in May 2025, India has only 525 Sakhi Niwas hostels with a combined capacity of 42,230 beds. This represents a tiny number for the country's size, with the hostel count falling from 500 in March 2022 to 463 by December 2024, though the RTI data shows a sudden increase to 525 hostels by May 2025. The Parliamentary Committee on Empowerment of Women noted in 2006 that only 607 of the 873 hostels sanctioned since 1972 had been completed.
The scheme's financial performance reveals a concerning trend of declining government commitment. Budgetary allocations have fallen continuously from ₹165 crore in FY20 to ₹20 crore in FY25, while actual spending has been even lower, dropping from ₹33 crore to just ₹6 crore for the respective years. As reported by BehanBox, this funding shortage has resulted in incomplete hostel projects and limited operational capacity across the country. The Great Lakes Institute of Management's study identifies safe and affordable housing as the missing link between education and employment for working women.
Tamil Nadu demonstrates a promising approach to working women's accommodation through its Thozhi hostels program, which operates 19 hostels across 15 districts offering over 1,800 beds with 87% occupancy. According to the report, hostels in Chennai, Coimbatore and Trichy are operating at or near full capacity. The state's approach includes public-private partnerships, affordable rents, furnished rooms, biometric entry, CCTV surveillance, common kitchens, laundry facilities, and creches. The Great Lakes Institute of Management survey found that safety, family approval and affordability were the primary reasons women chose Thozhi hostels, with many stating their parents would not have allowed migration without government-backed hostel assurance.
The report emphasizes that states must view safe accommodation for working women as a long-term investment in human capital and economic development rather than a welfare scheme. Tamil Nadu's success with nearly half of the state's women in paid employment compared to one-third across India demonstrates the effectiveness of comprehensive support systems. The analysis suggests that safe and affordable hostels can help more women transition from the NEET category (neither in employment, education, nor training) into sustainable careers, creating better returns on India's existing education investments. This approach could potentially reduce the over 50% of urban Indian women who fall into the NEET category and improve overall economic participation.
