Research shows that companies with gender-diverse leadership are 25% more likely to outperform their competitors. Yet in India, a country pursuing ambitious economic goals, women occupy just 19% of C-suite positions—a leadership gap that could be costing the nation billions in unrealized economic potential.
Words by Karan Karayi
The view from the summit of India Inc. is one that is no doubt intoxicating, but it is one whose ascent is an arduous one. And this is even more true for women trying to scale those heady heights.
In a recent report, Avtar, a workplace culture consulting firm, revealed that women hold just 19% of C-suite roles in India. This figure, though a slight improvement from previous years, remains starkly low compared to the global average of 30%. Despite decades of progress in gender equality, India’s corporate landscape continues to be a male-dominated arena, with women struggling to break through the highest levels of leadership. The question that looms large is: Why, despite numerous initiatives and growing awareness, does India still lag in ensuring women reach the top echelons of corporate leadership?
The importance of women’s participation in leadership roles cannot be overstated. Research consistently shows that gender-diverse leadership teams drive better financial performance, foster innovation, and improve decision-making. For India, a country aspiring to become a $5 trillion economy, the underrepresentation of women in leadership is not just a social issue but an economic imperative. As we delve into the state of women’s leadership in India, it becomes clear that while progress has been made, significant barriers remain—barriers that require urgent attention and action.
The Current Landscape: A Mixed Picture
India’s journey toward gender diversity in corporate leadership has been marked by both progress and stagnation. On the positive side, initiatives like the Companies Act of 2013, which mandated at least one woman on the board of listed companies, have brought more women into boardrooms. According to the Ministry of Corporate Affairs, women now hold 18.67% of board positions in listed companies—a significant improvement from a decade ago. However, this figure remains far below the global benchmark of 30%, and the representation of women in executive roles is even more dismal.
This is in stark contrast to countries like France and Norway, where women occupy over 40% of board seats. Even within India, certain sectors like IT and banking have made greater strides in gender diversity, while industries such as manufacturing and energy continue to lag behind.
The progress, though commendable, is uneven. Women are often concentrated in middle-management roles, with few breaking through to the upper echelons of leadership. This “leaky pipeline” phenomenon, where women drop off at every stage of their career progression, is a significant barrier to achieving gender parity in leadership.
The Deep-Rooted Barriers to Women’s Leadership
The challenges women face in reaching leadership roles in India are multifaceted, rooted in both cultural norms and systemic biases. One of the most pervasive barriers is the societal expectation that women prioritize family over career. A 2022 study by Catalyst found that 60% of women in India cite work-life integration as a major challenge. The lack of supportive policies, such as flexible work arrangements and adequate parental leave, exacerbates this issue, forcing many women to opt out of leadership tracks.
Gender stereotypes and unconscious biases also play a significant role. Women are often perceived as less capable of leadership, particularly in male-dominated industries. A 2023 study identified 30 distinct types of bias that women face in the workplace, ranging from assumptions about their commitment to their careers based on marital status to judgments about their communication styles. These biases, often subtle and insidious, create an environment where women must constantly prove their worth, while men are promoted based on potential.
Another critical barrier is the lack of mentorship and sponsorship for women. Unlike their male counterparts, women often struggle to find mentors who can guide them through the complexities of corporate leadership. This lack of support is compounded by the “broken rung” phenomenon, where women are disproportionately overlooked for their first promotion to management. According to McKinsey’s 2023 Women in the Workplace report, for every 100 men promoted to first-level management, only 87 women are advanced. This initial hurdle sets the stage for a widening gender gap at higher levels of leadership.
Breaking the Mould, Rising to the Top
Despite these challenges, there are inspiring examples of Indian women who have shattered the glass ceiling. Take, for instance, Indra Nooyi, the former CEO of PepsiCo, who became one of the most powerful women in global business. Nooyi’s success was built on a combination of personal resilience, strategic vision, and a supportive corporate culture that valued diversity. Similarly, Zia Mody, one of India’s top corporate lawyers and co-founder of AZB & Partners, has broken barriers in the legal profession, a field traditionally dominated by men.
These success stories highlight the importance of supportive policies and mentorship. Nooyi, for instance, has often spoken about the role of her mentors in shaping her career. Similarly, Mody’s rise to the top was facilitated by a culture that valued meritocracy and provided opportunities for women to excel. These examples demonstrate that while systemic barriers exist, they are not insurmountable. With the right support and opportunities, women can and do rise to the highest levels of leadership.
Outlining The Business Case for Women’s Leadership
The benefits of having more women in leadership roles are well-documented. A 2020 report by McKinsey found that companies with more women on their executive teams were 25% more likely to have above-average profitability. Gender-diverse leadership teams bring a variety of perspectives to decision-making, leading to more innovative solutions and better risk management. Moreover, companies with diverse leadership are more likely to attract and retain top talent, enhancing their reputation and employee satisfaction.
For India, the economic case for gender diversity is particularly compelling. With one of the lowest female labor force participation rates in the world (21% in 2022, according to the World Bank), India cannot afford to leave half of its talent pool untapped. Increasing women’s participation in leadership roles is not just a matter of equity; it is a strategic imperative for economic growth and competitiveness.
The Way Forward: Strategies for Change
To bridge the gender gap in leadership, a multi-pronged approach is needed. First and foremost, companies must implement gender-neutral hiring and promotion practices. This includes using data-driven approaches and artificial intelligence to mitigate bias in recruitment and performance evaluations. Additionally, organizations should expand mentorship and leadership development programs for women, ensuring that they have the support and guidance needed to advance in their careers.
Policy changes are also crucial. Companies must offer better parental leave and childcare support, enabling women to balance work and family responsibilities. Flexible work arrangements, such as remote work and part-time options, can also help retain women in leadership pipelines. Moreover, male allies must play an active role in championing gender diversity, challenging biases, and advocating for inclusive policies.
The government, too, has a critical role to play. While initiatives like the Companies Act have been a step in the right direction, more needs to be done to enforce gender diversity quotas and incentivize companies to promote women to leadership roles. Civil society and industry bodies can also drive change by raising awareness, sharing best practices, and holding companies accountable for their diversity goals.
A Call to Action
The underrepresentation of women in leadership roles is not just a women’s issue; it is a societal and economic issue that demands collective action. While progress has been made, the pace of change remains too slow. For India to realize its full potential, it must harness the talents of all its citizens, regardless of gender.
As we look to the future, the path forward is clear. Companies, governments, and civil society must work together to dismantle the barriers that hold women back. By fostering inclusive cultures, implementing supportive policies, and challenging outdated norms, we can create a corporate landscape where women not only participate but thrive in leadership roles.
To say that a mere 19% of women find themselves occupying the role of a CEO is a sobering reminder of the work ahead of us to create a leveling playing field in corporate India. It is without doubt a challenge, but equally an opportunity. One to dismantle antiquated norms, and build a better organisational order that embraces all. The time to act is now. The future of India Inc.—and indeed, the future of India—depends on it.
