Economic imperative of women’s leadership in India’s private sector

This article is authored by Sasmit Patra, Member of Parliament, Rajya Sabha, New Delhi.

This decade is widely regarded as India’s, with the country poised to realise its vision of becoming a global economic powerhouse. The government is providing essential policy and fiscal support to drive this monumental transformation, supported by a dynamic private sector leading technological innovation, enhanced infrastructure, and an enviable demographic strength. Central to this transformation is India’s private sector, which plays a pivotal role in driving growth, innovation, and competitiveness, setting the stage for a robust and sustainable economic future. It is worth noting here that India Inc.’s contribution to the Gross Domestic Product (GDP) has risen to a 15-year high, with the profit-to-GDP ratio for Nifty 500 Companies rising to 4.8% in 2023-2024 (FY 24). This signifies the crucial role the private sector plays in India’s vision of achieving a $5 trillion economy.

Women empowerment (Voices of Youth)

Achieving this vision does not come without significant challenges, which can potentially slow India’s growth to an estimated 6.6 % in FY 2024-25. This makes it crucial for India to harness the full potential of its working-age population reaching its highest level at 68.9% by 2030. At present, India is unable to leverage the capability of half its population, as there is a stark gender disparity in the workforce. While there has been an overall increase in the representation of women across the workforce over the years, the situation is concerning, particularly, at leadership levels. Recently released LinkedIn Economic Graph Data, reveals that the percentage of women in senior leadership roles was a mere 18.7% in 2023. Their representation continues to decline as we move up the corporate ladder – only 17.4% of women become vice presidents, with only 15.3% progressing to attain C-suite positions. Further, research has revealed that less than 30% of women hired at entry-level positions reach leadership roles, sharply contrasting with higher progression rates in men.

Building a pipeline of women to reach leadership roles can enable achieving India’s economic vision at an accelerated pace. For example, India’s financial landscape has been transformed by leaders, such as Zarin Daruwala, the first woman to head Standard Chartered Bank since it arrived in India, who played a key role in bolstering wealth management and digitization of services. In the private sector, Roshni Nadar Malhotra, head of the IT giant HCL Technologies, has emerged as a trailblazer, signifying the instrumental role acquired by women in family businesses as a guiding force for aspiring women leaders in traditionally male-dominated fields.

Examples such as these stand as a testament to the ingenuity and leadership capability of women who can make it to the top, reaffirming the findings of studies that demonstrate the impact of women in leadership positions. Harnessing women’s unique insight, coupled with a nuanced understanding of consumption behavior and patterns, provides added leverage to develop efficient products for a diverse market. Particularly in the banking sector, women leaders possess the power to create inclusive financial systems that can empower women and reduce poverty, through enabling gender-inclusive initiatives, such as gender-specific financial literacy programs, or regulations supporting the creation of women-focused financial products. In essence, when women lead, they often uncover solutions that others might overlook.

Accelerating the progression of women to leadership requires a concerted effort by all the players in the ecosystem. One of the most crucial aspects is to foster greater male allyship through paid paternity leave. The government should encourage paid paternity leave in the private sector so that there is a positive change in the distribution of unpaid work. Further, incentivizing organizations to deliver targeted mentorship and corporate leadership training for aspiring women leaders can build a pathway for women to reach positions of decision-making. Some private sector companies have already pledged to push women’s leadership to 50% before 2030, through capacity-building programmes and initiatives. Philanthropies, such as the EdelGive Foundation, are leading the way to bolster women in leadership through initiatives like Stree-Leads, which aim to break down the barriers that women face and focus on empowering them through pathways, such as mentorship.

To consistently sustain and catapult India’s socio-economic growth, achieving gender parity in private sector leadership will need to be fast-tracked as the benefits extend beyond individual companies to the broader economy, driving growth, innovation, and competitiveness. Empowering women leaders today will pave the way for a stronger, more resilient economy tomorrow, positioning India as a true leader on the global stage.

This article is authored by Sasmit Patra, Member of Parliament, Rajya Sabha, New Delhi.