Gender inequality in employment describes barriers to accessing opportunities in, and the treatment offered in the workplace. These disparities can result in pay gaps, lower representation of women in leadership roles, and a stagnating economy. Gender inequality in employment restricts a country’s full economic potential and sustains or elevates social inequalities. This study assesses gender disparity in employment in India on a zone-wise basis, by reviewing the NSDP, and gender-based labour force participation and unemployment from 2011 to 2024. The research utilizes publicly available data from government-sourced employment datasets such as the PLFS and MOSPI. The findings indicate various disparities in work engagement rates by regions and gender. Regression models assess the influence of male and female participation on the economic output by state. The study supplements fixed effects with year, allowing the study to examine whether states including females in the labour pool favourably correlated with inclusive economic performance. Overall, the study found that female labour participation was positively correlated with economic output under fixed effects with year. Urban areas typically have a higher full employment unemployment (UE) rate for females, against a backdrop of increased educational access to women, and the North-East demonstrates enhanced gender participation even with lower NSDP. In aggregate, the study identifies that structural changes, social changes, and natural, smart, and inclusive gender-based policy changes are essential to encourage equitable growth and to benefitably use a society’s economic potential.