Indian firms with more women see higher returns, yet 63% have no women in key roles
Corporate gender diversity has become a defining factor in business performance, yet Indian companies remain reluctant to embrace women in leadership roles despite compelling financial evidence. A comprehensive analysis of 840 listed companies reveals a stark contradiction. Organisations with women on their boards and executive teams generate significantly higher profits, yet nearly two-thirds operate without any women in key managerial positions.
This paradox has emerged at a critical juncture for Indian businesses, as global competition intensifies and markets demand greater agility from corporate leaders. The Marching Sheep Inclusion Index 2025 found that companies with greater female representation report profit margins 20-50% higher than their male-dominated counterparts, depending on the sector. 8 out of 10 industries examined showed this positive correlation between women's leadership presence and financial performance.
The study's scope encompasses major economic drivers including manufacturing, steel production, banking and financial services, pharmaceuticals, information technology, consumer goods, and infrastructure development.
Financial incentives not enough for representation Despite clear evidence that gender-diverse companies perform better financially, the report finds that monetary gains alone have not driven meaningful inclusion. While firms with more women in leadership report up to 50% higher profit margins, 63.45% of Indian companies still have no women in key managerial roles, indicating that business incentives are not translating into action.This disparity persists even as statutory requirements under the Companies Act 2013 have improved board-level representation.
The research, conducted by HR advisory firm Marching Sheep's analytics division, represents one of the most extensive mappings of gender inclusion in Indian corporate structures to date.
The study, spanning 30 sectors from manufacturing to pharmaceuticals, reveals what researchers term an "hourglass pattern" in gender distribution. Women appear at entry levels and reappear at board level, but vanish from middle management, precisely where succession planning and operational decisions take shape.
Women constitute just 22% of India's corporate workforce, trailing behind the 28% female participation rate in urban employment recorded in the Periodic Urban Labour Force Survey 2023-24.
Women in key roles giving firms a strategic edgeThe financial benefits align with global research demonstrating that diverse teams deliver superior risk management and innovation. In India's competitive economic environment, this translates into measurable returns that position gender diversity as a strategic necessity rather than mere compliance.
Companies across manufacturing, banking, pharmaceuticals, and technology sectors consistently demonstrated this performance advantage when women occupied senior positions.
Societal barriers are too strong to easily budgeThe research identifies systemic obstacles preventing women from ascending to decision-making roles. Cultural expectations, inadequate succession planning, and workplace structures that penalise career breaks continue to thin the pipeline of female talent.
Many organisations treat diversity initiatives as compliance exercises rather than strategic imperatives, failing to address fundamental structural barriers that limit women's career progression.
The findings suggest that current progress remains superficial, with many organisations treating diversity as a tick-box exercise rather than integrating it into core business strategy.
Change can be brought with conscious effortIndustry observers note that sustainable change requires embedding inclusion into performance metrics and accountability structures. This includes equitable hiring practices, targeted leadership development programmes, and workplace cultures that support retention.
As digital transformation reshapes business priorities, the data suggests that companies excluding women from leadership positions may be undermining their own competitive positioning. The challenge lies in translating these compelling statistics into systematic organisational change across Indian industry.
This paradox has emerged at a critical juncture for Indian businesses, as global competition intensifies and markets demand greater agility from corporate leaders. The Marching Sheep Inclusion Index 2025 found that companies with greater female representation report profit margins 20-50% higher than their male-dominated counterparts, depending on the sector. 8 out of 10 industries examined showed this positive correlation between women's leadership presence and financial performance.
The study's scope encompasses major economic drivers including manufacturing, steel production, banking and financial services, pharmaceuticals, information technology, consumer goods, and infrastructure development.
Financial incentives not enough for representation Despite clear evidence that gender-diverse companies perform better financially, the report finds that monetary gains alone have not driven meaningful inclusion. While firms with more women in leadership report up to 50% higher profit margins, 63.45% of Indian companies still have no women in key managerial roles, indicating that business incentives are not translating into action.This disparity persists even as statutory requirements under the Companies Act 2013 have improved board-level representation.
The research, conducted by HR advisory firm Marching Sheep's analytics division, represents one of the most extensive mappings of gender inclusion in Indian corporate structures to date.
The study, spanning 30 sectors from manufacturing to pharmaceuticals, reveals what researchers term an "hourglass pattern" in gender distribution. Women appear at entry levels and reappear at board level, but vanish from middle management, precisely where succession planning and operational decisions take shape.
Women constitute just 22% of India's corporate workforce, trailing behind the 28% female participation rate in urban employment recorded in the Periodic Urban Labour Force Survey 2023-24.
Women in key roles giving firms a strategic edgeThe financial benefits align with global research demonstrating that diverse teams deliver superior risk management and innovation. In India's competitive economic environment, this translates into measurable returns that position gender diversity as a strategic necessity rather than mere compliance.
Companies across manufacturing, banking, pharmaceuticals, and technology sectors consistently demonstrated this performance advantage when women occupied senior positions.
Societal barriers are too strong to easily budgeThe research identifies systemic obstacles preventing women from ascending to decision-making roles. Cultural expectations, inadequate succession planning, and workplace structures that penalise career breaks continue to thin the pipeline of female talent.
Many organisations treat diversity initiatives as compliance exercises rather than strategic imperatives, failing to address fundamental structural barriers that limit women's career progression.
The findings suggest that current progress remains superficial, with many organisations treating diversity as a tick-box exercise rather than integrating it into core business strategy.
Change can be brought with conscious effortIndustry observers note that sustainable change requires embedding inclusion into performance metrics and accountability structures. This includes equitable hiring practices, targeted leadership development programmes, and workplace cultures that support retention.
As digital transformation reshapes business priorities, the data suggests that companies excluding women from leadership positions may be undermining their own competitive positioning. The challenge lies in translating these compelling statistics into systematic organisational change across Indian industry.
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