India's corporate sector, often referred to as India Inc, has demonstrated robust growth by adding more than a million jobs over the past three years. However, a recent analysis reveals a concerning trend: women have disproportionately missed out on this expansion, securing only about 18% of these new positions.
This imbalance has led to a marginal decrease in women's overall share of the corporate workforce, from 19.6% to 19.4%, instead of the expected improvement. The findings, from the third edition of the “Mind the Gender Gap” report by the CFA Institute, analyzed Business Responsibility and Sustainability Reporting (BRSR) disclosures from 300 listed companies, representing over 70% of India's market capitalization.
Structural Barriers Hinder Inclusion
Arati Porwal, Senior Country Head, India, CFA Institute, emphasized that economic growth alone is not translating into greater workplace inclusion. “While companies have created over a million new roles, women have not participated proportionately in that growth. This points to structural gaps rather than cyclical fluctuations,” Porwal stated.
The report highlights that the problem begins long before women reach leadership positions. Despite significant progress in higher education, with women accounting for 48% of total higher education enrollment and 43% of STEMM enrollments, these gains are not translating into commensurate employment opportunities.
“When the talent pipeline itself is narrow, it inevitably impacts leadership representation and pay parity,” Porwal noted, identifying a significant economic leakage due to this gap.
Widening Pay Gaps and Stagnant Representation
The disparity extends to remuneration and representation at senior levels:
- Male directors earned a median remuneration 3.6 times higher than female directors in FY 2024-25, up from 2.9 times three years prior.
- Women's representation on company boards has remained largely stagnant at 18–19% over the last three years.
- Representation among Key Managerial Personnel (KMPs) rose only marginally to 12.4%, with nearly two-thirds of companies reporting no female KMP.
- Male KMPs continue to earn approximately 70% more than their female counterparts.
- Even among general employees, the female-to-male pay ratio declined from 94.6% in FY23 to 88.3% in FY25, indicating faster wage growth for men.
Addressing the Root Causes
Recruitment bias is identified as a critical, addressable factor. Sectoral analysis further shows uneven progress: Information Technology, Financial Services, and Consumer Discretionary sectors report higher female participation (23% to 34%), while Energy, Materials, and Utilities lag significantly (4% to 6%).
Porwal attributes the leadership gap to both pipeline issues and policy enforcement. While regulatory mandates have improved board-level diversity, KMP representation remains low due to a lack of similar enforcement. Organizations also need stronger support systems for women throughout their careers, particularly around maternity, caregiving, and career breaks.
Recommendations for Progress
The report suggests several key actions to move beyond mere compliance to genuine competitive advantage:
- Standardize the definition of KMPs and improve remuneration disclosures.
- Set measurable board-level diversity targets.
- Invest in structured hiring, retention, return-to-work, and leadership development programs.
- Integrate diversity metrics into business scorecards.
- Eliminate bias from hiring, evaluation, and promotion processes.
Ultimately, sustained participation of women not only benefits individuals but also contributes to broader systemic change and India's economic ambitions.