Bridging the gender gap in India’s corporate landscape
India’s corporate world is at a crossroads. Despite significant progress in recent years, gender gaps in pay, representation, and leadership persist, limiting the country’s potential for inclusive economic growth. With women comprising nearly half of India’s population, their full participation in the workforce is not just a matter of equity but also a crucial driver of national prosperity. This article explores the challenges and opportunities for addressing gender disparities in India’s corporate sector, with real-life examples and actionable insights.
The gender pay gap remains one of the most pressing issues in India’s labor market. According to the World Economic Forum’s Global Gender Gap Index 2024, India ranks 129th out of 146 countries, with women earning only ₹39.8 for every ₹100 earned by men. This disparity is not limited to low-wage sectors; it extends to high-paying industries like technology and finance. For instance, Bollywood actress Deepika Padukone made headlines when she demanded pay parity, highlighting that even women at the top of their fields face systemic inequities.
The COVID-19 pandemic exacerbated these challenges. Data from the Periodic Labour Force Survey (PLFS) revealed that while male wages grew during the pandemic, female wages declined significantly, widening the pay gap by 7% between 2018-19 and 2020-212. Addressing this issue requires not only policy interventions but also a cultural shift within organizations to value women’s contributions equally.
Women in Leadership: Breaking the Glass Ceiling
Despite making up nearly half of entry-level employees, women’s representation diminishes sharply as they climb the corporate ladder. A 2024 survey by KPMG and AIMA found that women hold only about 25% of C-suite positions in India, compared to 46% at entry-level roles. This phenomenon, often referred to as the “leaky pipeline,” underscores the structural barriers that prevent women from advancing into leadership roles.
While much of the discourse focuses on formal employment, it is essential to address the plight of women in India’s informal sector, where they constitute a majority. These workers often lack access to social protections like maternity benefits or equal pay laws. For example, although the Mahatma Gandhi National Rural Employment Guarantee Act mandates equal wages for men and women, enforcement remains inconsistent. Bridging this gap requires better implementation of existing laws and extending protections to informal workers.
Cultural norms and occupational segregation further limit women’s economic opportunities. Women are often concentrated in low-growth sectors like textiles and handicrafts while being underrepresented in high-growth fields like technology and manufacturing. Addressing these disparities involves challenging societal norms that dictate “appropriate” roles for women and encouraging their participation in diverse industries.
One promising initiative is Nasscom’s “Women Wizards Rule Tech” program, which aims to upskill women in technology roles through mentorship and training. Such programs not only equip women with the skills needed for emerging industries but also create role models for younger generations.
The Indian government has introduced several policies to promote gender equity in the workplace. The Maternity Benefit (Amendment) Act of 2017 extended paid maternity leave to 26 weeks, making it one of the most generous policies globally. However, critics argue that such policies can inadvertently discourage employers from hiring women due to perceived costs.
To counteract this, organizations can adopt shared parental leave policies, as seen in countries like Sweden. This approach distributes caregiving responsibilities more equitably between men and women while reducing biases against hiring female employees.
Beyond ethical considerations, gender diversity makes good business sense. Research shows that companies with diverse leadership teams outperform their less diverse counterparts in terms of innovation and financial returns5. For instance, Hindustan Unilever has consistently reported strong performance metrics while championing gender diversity through initiatives like its “Career by Choice” program for returning mothers.
Moreover, closing the gender gap could add $2.9 trillion to India’s GDP by 2025 if women participated in the workforce at the same rate as men. This statistic underscores the untapped potential of half the population and serves as a compelling argument for immediate action.
The Way Forward
Addressing gender gaps in India’s corporate sector requires a multi-pronged approach:
- Leadership Commitment: Boards must prioritize gender equity as a strategic objective.
- Skill Development: Companies should invest in upskilling programs tailored for women.
- Policy Reforms: Governments and organizations must collaborate to enforce equal pay laws and extend protections to informal workers.
- Cultural Change: Society needs to challenge stereotypes that limit women’s career choices.
Real progress will require collective action from all stakeholders—government bodies, corporate leaders, civil society organizations, and individuals alike. As India strives toward becoming a $5 trillion economy, bridging the gender gap is not just an ethical imperative but also an economic necessity.
By fostering an inclusive environment where women can thrive at all levels—from entry-level roles to boardrooms—India can unlock its full potential and set an example for other nations grappling with similar challenges.
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About the author:
Jyotsna Dash Nanda, AVP, Corporate Communications, DS Group