Rainbow economy: The cost of discrimination

june 20, 2025

Images: Shutterstock, Pexels

The “rainbow economy”, also known as “pink economy” or the “pink market”, is the economic influence or potential of the LGBTQ+ community.

Queer identity

The LGBTQ+ community represents 10% of India’s 1.4 billion population, with around 135 million individuals identifying with a queer identity, as per the Kinsey scale, an ORF study said.

Representation

Furthermore, India’s queer community makes up approximately 18% of the global LGBT population.

Untapped potential

The queer community in India is estimated to have a purchasing power of $168 million, which has remained untapped due to societal stigma and economic exclusion.

Workspace discrimination

As per a 2024 study, 56% of white-collar workers in India reported facing discrimination at the workplace. Furthermore, less than 6% transgender people are formally employed.

Cost of homophobia

According to a World Bank study, homophobia has cost the country 0.1% to 1.7% of GDP. To put that into perspective, that is a loss of ₹112 billion to ₹1.7 trillion.

Productivity

Various studies have found that discrimination, especially at workspaces, leads to lower productivity. 

Lower wages

Furthermore, lower wages earned by queer people, compared to their heterosexual colleagues due to homophobia, results in lower tax revenue and reduced consumer spending.

2018 ruling

Slowly but surely, social norms are changing. In 2018, the Indian Supreme Court decriminalised homosexuality, and in 2019, the country passed the transgender persons (Protection of Rights) Act.

Corporate allies

Indian companies are also increasingly implementing LGBTQ+ inclusion initiatives.

Respect

Beyond their economic impact, the queer community deserves respect simply for who they are and not just for what they contribute.

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