Gender inequality in the workplace remains one of the most critical obstacles to inclusive and sustainable economic growth in India. Despite rising female education levels and gradual improvements in participation, substantial disparities persist in wages, occupational access, and career progression. This study empirically examines the economic implications of gender inequality in India’s labour market over a 30-year period (1996–2025), focusing on two key dimensions: the Gender Wage Gap (%) and Occupational Segregation (Duncan D Index). Using secondary data from the National Sample Survey Office (NSSO), Periodic Labour Force Survey (PLFS), and the International Labour Organization (ILO), the study applies descriptive analysis, trend evaluation, and Excel-based regression modelling. The Gender Wage Gap (%) serves as the dependent variable, while Occupational Segregation (Duncan D Index) acts as the primary independent variable, with education and experience as control factors. Findings reveal that India’s gender wage gap declined from 38% in 1996 to 24% in 2025, while occupational segregation fell from 0.62 to 0.38, suggesting modest but persistent structural inequality. Women’s labour force participation, however, remained low, dropping sharply during the COVID-19 pandemic before partial recovery by 2025. Regression analysis confirms a positive and statistically significant relationship between occupational segregation and wage disparities—industries with greater segregation, such as retail and hospitality, display wider wage gaps, while sectors like education and healthcare exhibit narrower differences. The analysis concludes that gender inequality leads to the underutilization of female talent, reducing India’s GDP potential by an estimated 14–18%. The study highlights the need for stricter enforcement of equal pay laws, gender pay audits, inclusive childcare policies, and leadership programs for women. Addressing these structural barriers is essential to enhance productivity, foster equality, and achieve sustainable economic growth in India by 2025 and beyond.