Women in India Inc: Representation remains poor despite regulatory push

Gender diversity in the corporate world remains a pipe dream. At present, women occupy only 17 per cent of India Inc’s board seats. Globally, around 20 per cent directorships at listed companies were held by women. Asian and emerging markets are below the global average, while Europe and North America fare well. France and Italy have over 40 per cent women directorships.
 
At the end of 2013, women directors accounted for only 5.3 per cent of total directorships at domestically listed firms. The jump has come on the back of a regulatory diktat in 2016, mandating listed firms to have at least one women director. This helped India close the gap with the global average, at least on paper. Most companies have resorted to appointing a family member to fulfill this requirement. To overcome this issue, Sebi last year mandated the top 500 listed companies to have at least one independent female director.

 

Currently, about 43 companies in the top 500 are yet to appoint women independent directors—about 80 per cent of these defaulters are state-owned companies, data provided by PRIME Database shows.
 
The theme of this year’s International Women’s Day is ‘I am generation equality’. However, a World Economic Forum (WEF) study shows that it will take another 55 years to close the gender economic gap.

 
Bank of America says closing the gap would bring in huge economic gains. “The potential gains from gender parity are huge: Full economic equality could increase global GDP by up to $28 trillion, or by 31 per cent, by 2025 — equivalent to the current GDP of the US and China combined,” said the brokerage in a note this week.