An economy is a subject which is highly influenced by gender disparities, which as a result impacts prosperity, and development of a nation. In many developing nations, including India, the age-old issues like lack of access to education and opportunities in various spheres of society, the underutilization of women workforce, unequal pay, and rejection of the third gender is a hindrance to effective utilization of human resources that has become one of the major causes of their economies’ poor growth. This study explores the complex relationship between gender inequality and economics, focusing on the significant influence that gender-based discrepancies have on economic results. This study examines the complex aspects of gender differences in the field of economics using an interdisciplinary approach that incorporates viewpoints from feminist jurisprudence, sociology, philosophy and economics. We have uncovered the profound effects of these differences on people’s well-being in larger economic systems, in addition, the paper realizes the role of personal relationships, unequal wages, multi-tasking, general stigma against third gender as a root cause of gender biasness in India with reference to other economies. While gender equality is a crucial development objective per se, the economic engagement of women and third gender play a prominent role in stability and growth of an economy. The equal participation of different genders can accelerate the growth of a nation having a progressing economy. The research aims to uncover these problems and emphasizes how crucial it is to address gender inequality as a matter of social justice as well as a vital element of equitable and sustainable economic development.