More women find seats in boardrooms, but real change is still far away

India’s corporate boardrooms are slowly evolving, but the question remains—are they changing fast enough? Recent data from the NIFTY 100 companies indicates a rise in the number of women directors—reaching 200 in 2023-24. While this is a sign of progress, a deeper look reveals a concerning gender imbalance in decision-making roles.

Gender gap in boardrooms

Women currently make up just 15 per cent of corporate boardrooms in India. Even among them, nearly 75 per cent are independent directors—a role that comes with no executive power. Despite the Companies Act 2013 mandating at least one woman director on every board, true decision-making power continues to lie with men.

Adding to the challenge, India’s corporate sector is predominantly family-run, with 85 per cent of businesses privately held. Many of these businesses operate on trust, tradition, and family codes, often sidelining governance practices that promote diversity.

Crisis in leadership planning

One of the biggest risks for these family-run businesses is the lack of formal succession planning. Shockingly, 97 per cent of such businesses do not have structured succession plans. This leaves them vulnerable to instability when a leadership crisis arises, further reinforcing male dominance in top positions.

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Are bigger boards the solution?

Regulatory pressures have led to an increase in the average board size in NIFTY 100 companies, rising from 9.86 members (2020-21) to 10.52 members (2023-24). This is partly due to the requirement of staffing five mandatory board committees for better corporate governance.

However, a larger board does not necessarily lead to better decision-making. Research suggests that efficiency often declines as boards expand. More importantly, if these additional seats are not translating into greater gender inclusion in executive roles, their impact remains limited.

Women’s role merely symbolic

The real elephant in the room is that women are still being excluded from executive leadership roles. While their presence in boardrooms is increasing, their ability to influence key decisions remains minimal.

Even in companies that comply with regulations, leadership remains largely male-dominated. The role of women is often symbolic rather than strategic, raising questions about whether companies genuinely believe in diversity or are simply meeting compliance requirements.

Slow shift towards diversity

Despite these challenges, a change is happening—albeit slowly. Younger generations stepping into leadership roles are bringing with them new perspectives, focusing on environmental, social, and governance (ESG) standards as well as diversity, equity, and inclusion (DEI) values.

However, a recent study found that many family-controlled businesses are still lagging behind in these areas. While external regulatory pressures have helped, internal resistance to change remains a major obstacle.

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Will corporate India embrace real change?

The inclusion of women in leadership goes beyond just representation—it brings fresh perspectives and diverse ways of thinking. Ensuring that women take on active executive roles is critical for the future of corporate India.

So, will corporate India embrace this change, or will women continue to remain on the sidelines? Why do you think women are still not given active executive roles?

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