In most of the countries, including India status of women is inferior to men. Women’s opportunities are said to be restricted by ideas among employers that only certain low level limited jobs can be performed by women. Women are thus said to be crowded into certain segments of the employment markets where wages and conditions are lower than their male counterparts. This situation aggravated due to the pressure of globalization. This phenomenon can be called marginalization of female labour”. Although rapid economic development has expanded women's job opportunities, most women are concentrated in lower-status jobs and the informal sector. Indian women, in spite of enjoying better status and position compared to other developing countries, have low levels of participation in economic activity. In such setting, this study aims to take a fresh look at the current situation of gender equality in the labour market in India and examine the trend of women’s employment status using both macro and micro level data and finally evaluates the effects of employment on economic independence relative to men. In the micro-level analysis the study examines the factors that led to the marginalization of women's labor force. The results suggest that women's work patterns in terms of formal vs. informal employment are determined by the family organization rather than by labor market .