As the world celebrates India’s recent legalization of gay sex as a human rights victory, its implications for Indian business are overwhelmingly positive. Previous estimates have put India’s economic loss due to the discriminatory law at $26 billion, or 1.4% of its national output. Research shows that discrimination constrains the labor supply and lowers productivity while increasing poverty rates, depression, and suicide in the LBGT+ community.
Broadly, countries that protect LGBT+ rights have better-performing economies. More concretely, India’s progress will help to propel its urban centers forward by attracting progressive multi-national companies, and in particular, solidify Mumbai as a competitive financial hub.
As businesses are freed to appeal directly to the LGBT+ market without fears of criticism for supporting illegal behavior, increased visibility should in time lead to wider acceptance. While the economic benefits of India’s progress unfold, there will be increased pressure on the 72 remaining countries criminalizing LGBT+ identity, and hope for further progress.
Read more at Bloomberg