Indian Companies with More Women Leaders Earn; 63% Still Have None in Top Roles

By: WE staff | Thursday, 10 July 2025

• Corporate gender diversity is linked to better business performance.
• Indian companies remain hesitant to promote women to leadership roles, despite strong financial evidence supporting the benefits.
• A study of 840 listed companies shows a clear contradiction between performance data and actual representation.

While increasing international evidence supports that gender diversity enhances business performance, Indian businesses remain behind in giving a push to women professionals for the top jobs. Marching Sheep's in-depth study of 840 listed corporations shows a remarkable paradox: companies with women directors and managing team members report 20–50 percent better profitability, but more than 63 percent of such companies do not have women in managerial ranks.

This imbalance is particularly urgent as Indian companies are exposed to more global competition and demands for quick-footed leadership. The research, across 30 large sectors such as banking, IT, pharma, and manufacturing, discovered that women are on the boards and at entry levels but not in middle management—where operational choices and leadership pipelines are defined. Women constitute only 22 percent of India's corporate workforce, falling behind the country's urban average of 28 percent.

The economic benefit of women in leadership is evident, reinforcing world research indicating that diverse teams create greater innovation and risk management. Yet entrenched social norms, inadequate succession planning, and inflexible workplace arrangements still constrain women's progression.

Diversity is still mostly treated as compliance rather than a strategic business imperative by much of the organization. Experts point out that effective change calls for a deliberate shift—integrating inclusion in hiring, leadership development, and retention practices, and linking it with performance measures to create an authentic inclusive and competitive corporate culture.