A recent Deloitte report highlights the increase in women’s representation in Indian board seats. With the release of numbers, the report also talks about the global average of women in boardrooms.
In the past few decades, Indian society has been progressing and putting its efforts towards fostering gender parity in all aspects. Besides being adept homemakers, women’s contributions to the business realm have been on the rise as well. From micromanaging their family to leading in the top leadership roles, Indian women are doing it all while showcasing their in-born managerial skills.
Despite sustaining judgments, women of India have proved that they are not less than anyone while simultaneously facing the gender gap, inequity in the workplace, and wage gap as well. However, the circumstances are transforming and we are witnessing a paradigm shift in the corporate landscape.
With the increased participation of women in the Indian corporate sphere, economic progress has been ensured. Women in senior leadership roles showcase the evolving psyche of the Indian society as a whole and it exhibits the transformation of a conservative society to a fair and gender-inclusive one.
Ascend of Women’s Representation in Boardrooms
A report has been published by Deloitte on International Women’s Day i.e., March 8, 2024, that highlights a moderate increase of women on board in the country. According to the report, the percentage has increased in 5 years to 18.3% as witnessed in the year 2023. The rise of women in board seats shows their diligence, dedication, and expertise.
Considering the global average of 23.3%, the rise of women’s representation in the boardroom in the country flaunts the unwavering commitment of the corporate world to fostering gender balance as well. Drawing from the stats, women occupied only 13.8% of board seats in the year 2018 and 17.1% in 2021 across India. Although the surge has been gradual yet steady, there is a need for more efforts to achieve comprehensive gender parity. The challenges persist and women shall have to fight even harder to win the battle in the corporate war field.
Shefali Goradia, Deloitte South Asia Chairperson while giving her remarks says, “Boardroom diversity requires a paradigm shift. Since many companies prefer to recruit board members with CEO or CFO experience, these numbers do not paint an optimistic outlook for pipeline development. India Inc. must break from historical patterns and prioritize capabilities over past roles.”
Emphasis on Women’s Leadership in Corporate Governance
The Indian marketplace is stressing to include more women in its corporate governance to attain a progressive economic landscape across the world. As mentioned in the 'Women in the Boardroom: A Global Perspective' report, the global average of 23.3 has increased by 3.6% since the year 2022. The report also revealed that, with this pace, the world would be able to achieve gender parity by 7 years from 2045 to 2038.
Despite having a lower percentage of increase as compared to the global average, India has been putting forth numerous initiatives and fostering opportunities to aid women and encourage them to try their flair in corporate governance.
The report adds, “Even if India were to match the global pace, achieving gender parity on boards would remain a distant goal until a robust pipeline of women leaders is developed.”
Stretch Factor Amongst Indian Women
British multinational professional services network, Deloitte Global has unveiled a research tool called ‘stretch factor’, which is dedicated to measuring the board seat acquired by individuals in a particular domain. The stretch factor shows the percentage of board seats that shall help everyone to get a transparent image of the market. For instance, if a stretch factor of a specific market is high then it ensures that a single director holds more than one seat in the sector.
Considering women in India, the stretch factor here has increased from 1.30 in 2021 to 1.32 in 2023. This shows a lower stretch factor that highlights the requirement for more women leaders in the market and the need to create a broader scale of women leaders with various skill sets.
Additionally, India has measured a 5.1% increase in women occupying CEO roles from 3.4% in the year 2018 whilst witnessing a decrease of women from 4.5 percent in 2018 to 4.1% in 2023 on chairing boards.
Conclusion: Parity Still Far Away
With women occupying 21.3% of life sciences & healthcare sector on company boards in addition to 20.5% in technology, media, and telecommunications; 19.7% in consumer business; 17.4% in manufacturing, and; lastly 16.9% in financial services- India still needs even more efforts to bring women forward in the market.
In comparison to the earlier days, today’s India is far more progressive in terms of gender equity. With ongoing efforts, we can achieve a fair and unbiased society where women get equal opportunities as men and get to show their leadership skills.
