As India Inc. grapples with the imperative of gender diversity, a glaring vacuum of women leaders persists at the top echelons of corporate hierarchies, particularly in sectors like IT and banking. Despite the substantial presence of women in the workforce, the climb to leadership positions remains steep, revealing stark disparities in career progression.
Recent studies shed light on the concerning statistics. While women constitute 22% of the Indian workforce, a significant majority of companies fall short with less than 20% representation of women in leadership roles. Consulting firm Aon’s DEI Landscape Report reveals that six in 10 companies face this shortfall, with half of them having less than 5% representation.
The situation becomes more alarming in specific leadership roles, with just 5% of Indian CEOs and 4% of CFOs being women, according to the Deloitte Global Women in Boardroom Study 7th edition.
In the IT sector, which boasts the largest female white-collar workforce in India, a study by the CFA Institute indicates a substantial 18.7 percentage point gap between women’s representation at the employee level and key management personnel (KMP). Despite India producing the highest number of female STEM graduates globally, only a third enter STEM careers, and even fewer persist beyond five years, highlighting challenges such as unfair practices, unconscious biases, and unequal opportunities.
Financial services companies, including banking, fare relatively better with a gap of 5.8 percentage points. However, banking veteran Padmaja Chunduru, MD & CEO of National Securities Depository Limited (NSDL), points out that women often face a difficult choice between work and family priorities, causing many to drop out as they ascend the hierarchy.
While corporate India has seen progress in women’s representation at the leadership level over the past decade, reaching 26-27%, the ultimate goal is parity at 50%, according to Sujatha Shivsankar, Chief–Culture, People Experience, IDE, Performance & Talent at KPMG in India. The absence of visible role models at the top hinders change at the bottom, emphasizing the importance of women seeing other women in critical roles.
KPMG’s Shivsankar notes that less than 50% of organizations in India prioritize gender diversity strategically, highlighting the need for comprehensive, multiyear plans addressing challenges in equal opportunities, equal pay, and creating an enabling environment. The realization of the untapped value through investment in this area remains a key driver for progress.
