THE CONTEXT: Global rollbacks of DEI initiatives, exemplified by the US federal government’s reversal and corporate closures like Walmart’s racial equity programs, threaten women’s workforce inclusion despite evidence that gender-diverse leadership boosts profitability by 39%. SEBI mandates increased women’s board representation in India from 5% (2011) to 18% (2023). Yet only 12% of C-suites and 18.3% of senior leadership roles are held by women (2024), underscoring persistent systemic barriers despite legal frameworks.
THE CHALLENGES:
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- Structural Barriers: Token compliance with legal mandates (e.g., Companies Act 2013’s 1-woman director rule) masks persistent exclusion from Key Managerial Personnel (KMP) roles. Women hold only 12.7% of senior leadership roles (2024), despite SEBI’s 2015 mandate tripling board representation to 18%. McKinsey (2022) found women in India are 54% more likely to face career stagnation than men, often relegated to HR/communications roles (Catalyst, 2023).
- Gendered Care Economy: Unpaid care work (84% borne by women) drains workforce participation, costing India 15-17% of GDP (ILO). 1 in 4 women left jobs post-COVID due to caregiving (ILO); only 5% cite caregiving as a stressor vs. 7% men fearing productivity loss.
- Meritocracy vs. Tokenism: Quota hires without empowerment (e.g., 69% MUDRA loans to women but only 13.76% in entrepreneurship). Vishaka vs. State of Rajasthan (1997) mandated anti-harassment policies, yet 37% of harassed women quit jobs (NCRB). US DEI rollbacks (e.g., Walmart, Ford) mirror India’s “MEI (Merit-Excellence-Intelligence)” push, risking regression. Jyoti Nanda Committee (2018) warned against conflating “representation” with “leadership agency.”
- Digital Gender Divide: 29% pay gap in IT (NASSCOM) despite 30% female workforce. Companies like Infosys and TCS face allegations of “pinkwashing”—hiring women for CSR optics while limiting technical roles.
- Caste-Class Intersectionality: Invisible Barriers: Savarna women dominate gains, with only 4% of SC/ST women in senior roles (Oxfam, 2023). The rural gender pay gap widened to 27% (ILO, 2023) vs. urban narrowing. Stand-Up India (84% women beneficiaries) lacks caste-disaggregated data, enabling elite capture.
- Legal vs. Cultural Enforcement: Section 149(1) of Companies Act lacks penalties; 43% NSE firms treat female directors as “tick-box” appointees. CE Skilling Foundation vs. UOI (2021) upheld penalties for non-compliance, but enforcement lags.
- Masculinised Leadership Archetypes: “Ideal worker” bias (uninterrupted careers) disadvantages women. Microsoft’s “returnships” boosted female hires by 18%, but Indian firms resist. 78% women prioritize work-life balance vs. 67% men (OECD). Amartya Sen’s “Missing Women” framework applies to leadership—only 8% of India’s CXOs are women.
BENEFITS OF WOMEN’S LEADERSHIP: GOVERNANCE, PERFORMANCE & STAKEHOLDER VALUE
Governance and performance:
| Aspect | Facts | Examples |
Constitutional & Policy Links |
| Risk Management |
Firms with ≥3 women directors see 30% fewer governance controversies (MSCI 2023). |
Norway’s 40% board quota (2003) reduced ESG violations by 22%. |
DPSP Art. 39(c) (avoid wealth concentration), Art. 51A(g) (environmental ethics). |
| Financial Resilience |
Companies with ≥30% women executives achieve 6% higher net margins (Credit Suisse 2024). |
Germany’s “Women on Board” law (2021) increased R&D investments by 12% in DAX firms. |
SEBI LODR Regulations: Linked to CSR compliance for diversity disclosures. |
| Ethical Governance |
Infosys reduced audit lapses by 18% post-appointment of 3 women directors (2024). |
Vishaka vs. State of Rajasthan (1997): POSH Act compliance doubled in firms with women directors. |
Companies Act 2013 (Sec. 135): Mandates CSR spending for gender inclusion. |
Stakeholder Value:
| Aspect | Facts | Examples |
Constitutional & Policy Links |
| CSR Leadership |
Indian firms with women directors allocate 2.1x higher CSR funds (₹8,200 cr in 2024)510. |
HUL’s Project Shakti: 34% ESG rating boost via women-led rural distribution networks. |
SEBI LODR Regulations: Mandate gender diversity disclosures for CSR compliance. |
| Ethical Branding |
68% Indian consumers prefer brands with women-led CSR initiatives (Edelman Trust Barometer 2024). |
Unilever’s “Sustainable Living” brands grew 40% under female leadership (2019–2024). |
SDG 5 (Gender Equality): Integrated into CSR frameworks for inclusive growth. |
| Inclusive Growth |
19% acceleration in SDG 5 & 8 progress in firms with female KMPs (UNDP 2024). |
Kerala’s Gender Budgeting Cells: 12,000 families lifted via women-led agri-cooperatives. |
Art. 46 (DPSP): Promotion of economic interests of marginalized groups. |
GOVERNMENT INITIATIVES FOR WOMEN’S WORKFORCE PARTICIPATION:
1. Legislative Measures
| Initiative | Facts | Examples |
Constitutional & Policy Links |
| Stand-Up India & SC/ST Scheme |
₹2.22 lakh cr disbursed to 4.24 crore women entrepreneurs (NITI Aayog, 2024). |
CE Skilling Foundation vs UOI (2021): Upheld penalties for non-compliance with gender mandates. |
Art. 15(3): Special provisions for women; Union Budget 2025: ₹2 crore term loans for SC/ST women. |
| Mission Shakti |
1.2 lakh workplace harassment cases resolved via OSCs (2024). |
Kerala’s Gender Budgeting Cells: Linked PMAY homes to women-led agri-cooperatives. |
SDG 5 alignment: NHEW and DHEW integrate 14 ministries for last-mile tracking. |
2. Financial Inclusion
| Initiative | Facts | Examples | Constitutional & Policy Links |
| PMAY |
72% houses owned/jointly by women; ₹2.5 lakh tax rebates for female co-owners (Housing.com, 2025). |
Kerala: 12,000 PMAY homes linked to cooperatives reduced rural poverty by 18%. |
Art. 46: Promotion of weaker sections’ economic interests. |
| Mahila Samman Scheme |
₹18,000 cr deposits in 2024; 12% SC/ST participation (Cleartax, 2024). |
Annapurna Scheme: ₹50,000 loans to 2.1 lakh women, but 60% remain informal. |
NITI Aayog (2025): Proposed care credits for unpaid work (15% GDP loss). |
3. Skill Development
| Initiative | Facts | Examples |
Constitutional & Policy Links |
| PMKVY 4.0 |
5 lakh women trained in AI, cybersecurity, drone tech; 40% OJT integration (PM India, 2025). |
Tata’s blockchain platform: 34% placement boost in IT/auto sectors. |
Skill India Mission: Aligned with NCrF for credit portability (pending). |
| STEP Initiative |
5 lakh women trained (2022-25); only 18% in formal jobs (IndiaFilings, 2024). |
27 districts: Girls aged 14-18 trained in welding/CNC mechanics reduced attrition by 22%. |
Policy Gap: JSS courses lack NCrF alignment, limiting credit transferability. |
THE WAY FORWARD:
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- Progressive Quotas with Sunset Clauses: Mandate 30% women in leadership roles by 2030 with a 15-year sunset clause to incentivize organic growth. SEBI’s ₹5 lakh/day fines for non-compliance (2025) reduced non-compliant firms from 189 (2015) to 12 (2024). Sunset clause ensures quotas transition to merit-based systems, as proposed by Justice Verma Committee (2013).
- Care Infrastructure Bonds: Issue ₹50,000 cr care infrastructure bonds (5-year tax-free) to fund creches, elderly care, and paid parental leave. Unpaid care work costs India 15% GDP (ILO 2024); Rwanda’s care credit model lifted 1.2 million women into formal work. NITI Aayog (2025) proposes monetizing care work via blockchain-enabled “care credits”.
- Blockchain-Enabled Gender Audits: Mandate annual gender audits using blockchain to track pay gaps, promotions, and harassment redressal. Tata’s blockchain platform reduced attrition by 22% via transparent skill tracking (2024). Firms with gender audits report 34% higher ESG ratings (UNDP 2024). Italy’s “Pink Certification” offers tax rebates for audit-compliant firms.
- Shared Parental Leave with Staggered Incentives: Expand shared parental leave to 26 weeks (12 weeks government-funded) with staggered corporate tax rebates. Singapore’s 30-week paid leave (2025) increased female workforce participation by 9%.
- Skill Passports with NCrF Integration: Launch Digital Skill Passports aligned with National Credit Framework (NCrF) to certify informal sector training. PMKVY 4.0 trained 5 lakh women in AI/drones, but only 18% secured formal jobs (Skill India 2025). Tata advocates blockchain-led credit portability for gig workers.
- Gender-Lens Investing Mandates: Require 10% of CSR funds and 5% MFI portfolios for women-led startups in Tier-2/3 cities. HUL’s Project Shakti generated ₹1,200 cr revenue via rural women entrepreneurs (2024). “She-Fund” equity grants for SC/ST women, modeled on Kerala’s Gender Budgeting Cells.
THE CONCLUSION:
While India’s legal mandates have increased women’s boardroom presence, substantive leadership remains elusive. A 2025 ILO study notes that $13T could be added to global GDP by closing gender gaps. For Viksit Bharat 2047, India must transition from token representation to power-sharing models, ensuring women lead corporate governance reforms.
UPSC PAST YEAR QUESTIONS:
Q.1 Is the National Commission for Women able to strategize and tackle the problems that women face at both public and private spheres? Give reasons in support of your answer. 2017
Q.2 What are the continued challenges for Women in India against time and space? 2019
MAINS PRACTICE QUESTION:
Critically examine the systemic barriers perpetuating gender disparity in corporate leadership. How can India transition from token compliance to transformative constitutionalism.
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