India Inc added 1 million jobs. Why did women get just 18% of them?

Despite adding more than a million jobs over the last three years, India Inc has barely moved the needle on gender inclusion. A CFA Institute analysis of 300 listed companies found that while businesses expanded their workforce by 13.3% between FY23 and FY25, women accounted for only around 18% of the new hires. As a result, women's overall share of the workforce slipped marginally from 19.6% to 19.4%, instead of improving.

Based on Business Responsibility and Sustainability Reporting (BRSR) disclosures from companies representing over 70% of India's market capitalisation, the third edition of the Mind the Gender Gap report argues that economic growth alone is not translating into greater workplace inclusion.

"While companies have created over a million new roles, women have not participated proportionately in that growth. This points to structural gaps rather than cyclical fluctuations,” says Arati Porwal, Senior Country Head, India, CFA Institute.

If businesses are creating jobs but women are not entering them in equal measure, where exactly is the system breaking down?

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The problem begins long before the boardroom

While the headline statistic is that in FY 2024 -25, male directors earned a median remuneration 3.6 times higher than that of female directors, compared with 2.9 times three years earlier, Porwal says the larger concern is not just the persistence of disparity, but the declining participation of women in the workforce. “When the talent pipeline itself is narrow, it inevitably impacts leadership representation and pay parity," she tells Business Today.

Women's representation on company boards has remained largely stagnant at 18–19% over the last three years. Representation among Key Managerial Personnel (KMPs) rose only marginally to 12.4%, with nearly two-thirds of companies reporting no female KMP. Overall, the report found fewer than one female KMP for every seven male KMPs.

The compensation gap also widens sharply at senior levels. Male KMPs continue to earn around 70% more than female counterparts on average. Even among employees, where pay remains relatively closer, female-to-male pay ratios declined from 94.6% in FY23 to 88.3% in FY25, indicating faster wage growth for men.

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Education isn't the problem. Workforce entry is.

The report points to another paradox.

India has made considerable progress in women's education. Women now account for 48% of total higher education enrolment and 43% of STEMM enrolments. Female PhD enrolment has more than doubled over the past decade, with women accounting for nearly 46% of new doctoral admissions.

Yet these gains are not translating into employment. "This gap represents a significant economic leakage," says Porwal. "While more women are pursuing higher education, their transition into the workforce remains disproportionately low."

She argues that the implications extend beyond diversity targets.

"With women comprising nearly 50% of the population but less than 20% workforce participation, India risks falling short of its broader economic ambitions. Addressing barriers at the entry level can significantly improve participation and help bridge this gap."

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Bias still influences hiring

According to Porwal, one of the most immediate barriers remains recruitment. "Recruitment bias is a key, addressable factor," she says.

The report's sectoral analysis reflects this uneven progress.

Information Technology, Financial Services and Consumer Discretionary continue to report relatively higher female participation, ranging from 23% to 34%. In contrast, Energy, Materials and Utilities have among the lowest representation, with women accounting for only 4% to 6% of the workforce. These sectors also report some of the widest senior-level pay gaps.

Why leadership diversity remains elusive

Porwal believes the leadership gap reflects both pipeline and policy.

“Board-level diversity has improved because of regulatory mandates, whereas KMP-level representation remains low due to the lack of similar enforcement."

At the same time, she says organisations need stronger support systems throughout women's careers, particularly around maternity, caregiving and career breaks.

"Without addressing both ends, progress will remain limited."
From compliance to competitive advantage

The report argues that disclosure alone is not enough. It recommends standardising the definition of KMPs, improving remuneration disclosures, setting measurable board-level diversity targets, and investing in hiring, retention, return-to-work and leadership development programmes.

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Porwal believes organisations also need to move beyond treating diversity as a regulatory obligation.

“Businesses typically prioritise areas that either drive business outcomes or are mandated by regulation. In many cases, diversity efforts begin as compliance-driven initiatives. However, organisations that have experienced the tangible benefits of diversity, improved decision-making, lower attrition and stronger performance, have embedded it into their strategic priorities,” she says, adding that for others, “regulatory push” may act as a catalyst.

She identifies three priorities for companies: integrating diversity into business scorecards, investing in structured career-stage support and eliminating bias from hiring, evaluation and promotion processes.

Porwal also believes women themselves have an important role to play in strengthening the leadership pipeline. She says women already in leadership positions have a responsibility to create pathways and amplify the voices of those who follow. For those building their careers, her advice is to stay the course despite inevitable challenges.

"Resilience and clarity of purpose are essential," she says, urging women to prioritise financial independence, build strong support systems, and recognise that career and personal aspirations can coexist. "Ultimately, sustained participation not only benefits individuals but also contributes to broader systemic change."