DEI In Leadership

A Business Imperative, not a Buzzword

In 2025, diverse perspectives serve as catalysts for innovation; equity is a strategic imperative than a mere buzzword; and inclusion stands to be the critical element driving organizational harmony. The era of relegating diversity, equity, and inclusion (DEI) initiatives to HR side projects is firmly behind us. In a landscape where both customers and employees demand accountability and progress, companies that fail to lead in DEI risk falling irreversibly behind.

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Often we don’t realize the impact but smaller nations such as Luxembourg (5684 cases per million) and Iceland (5196 cases per million) are hit equally hard when compared to other European countries. 13 out of 15 most severely hit countries are from Europe. In India, there are 13 cases per million so far.

Why Does DEI Matter in Leadership?

DEI in leadership is more than optics – it’s smart business. It unlocks new talent, skills, ideas, and perspectives, aligning with diverse customer bases and boosting engagement. Studies show that companies with diverse executive teams are 36% likelier to outperform on profitability.¹ In India, DEI must address socio-economic dynamics embracing gender, language, region, religion, sexual orientation, and physical abilities. Effective DEI requires cultural understanding to create genuinely inclusive workplaces. The key is not policies but weaving the threads of DEI within organizational culture where all individuals can thrive.

DEI in India: Where are we?

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On Diversity

Women’s workforce participation in India is more than 40%, catching up to the global average of 50% as of 2024.² This rising tide of female employment reflects the growing emphasis on diversity and inclusion (D&I) across industries. The BFSI and IT-ITeS sectors lead the charge in offering diversity jobs followed by healthcare, e-commerce, and education. Cities like Bengaluru, Delhi-NCR, and Mumbai are at the forefront, creating job opportunities for women, persons with disabilities (PwD), and the LGBTQIA+ community.

Top 5 ranked cities for Women Inclusion in India

While board diversity has improved partly due to SEBI's mandate for at least one female director, some companies have gone a step further and appointed multiple women board members, signalling deeper D&I commitment.

Women Directors on Corporate Boards

However, gender diversity at senior executive levels remains a challenge. While women form a substantial part of the workforce, they occupy less than 20% of C-suite positions in India—a stark "drop to the top." Hardly 2% of Fortune 500 companies in India have women MDs/CEOs. While 95% of NIFTY 500 companies have at least one female board member, fewer than 5% have female chairpersons, and more than 300 of NIFTY 500 companies lack women in key managerial personnel (KMP) roles. EMA Partners’ 2023-24 study of India’s top 200 listed companies highlights incremental progress: more than 40 companies have female KMPs with over 60 women in key executive roles. However, of the 213 KMPs who earned over $1 million in FY 2023-24, only 9 were women. Despite initiatives like the Companies Act and SEBI mandates driving board diversity, significant gaps remain in equitable representation in senior leadership across sectors.

“In the World Economic Forum's (WEF) Global Gender Gap Index 2024, India ranks 129th out of 146 nations.”

On PwD and LGBTQIA+ Inclusion

Beyond gender, the inclusion of under-represented groups like PwD and LGBTQIA+ individuals in leadership roles remains minimal. Only about 10% of PwD in India are employed,³ with negligible visibility in senior positions. The Rights of Persons with Disabilities Act (2016) aimed to improve employment access and some organizations have adopted inclusive practices, such as accessible office spaces, gender-neutral restrooms, and assistive technology. However, high costs and limited awareness hinder widespread adoption. Creating disability-inclusive workplaces requires policy support, infrastructure investment, and cultural sensitization. LGBTQIA+ inclusion has gained momentum since the decriminalization of homosexuality in 2018, but social biases persist, limiting participation, especially in senior roles. 

While interviewing, mitigating biases such as stereotyping, affinity, and confirmation biases, is crucial for fostering diversity; implementing structured interviews, blind resume screening, and inclusive job descriptions can ensure a fair and objective recruitment process that supports broader inclusion efforts. Addressing these gaps requires a cultural shift that normalizes diversity in sexual orientation and gender identity. Low participation rates of women, LGBTQIA+ individuals, and PwD at junior levels translate to scarce leadership talent and abysmally low representation at the board, compounded by cultural barriers and stereotypes hindering equitable hiring and promotions.

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DEI’s Uphill Battle in the Boardroom

Unconscious Bias 

Implicit biases and stereotypes often hinder the advancement of diverse talent, resulting in overlooked opportunities for diverse candidates, perpetuating homogeneity at the top. 

The Pipeline Problem 

Not preparing diverse talent for leadership roles exacerbates underrepresentation while challenges like societal pressures, caregiving responsibilities, workplace harassment, and physical safety concerns further hinder their progress. 

Limited Representation 

Lack of diverse voices in the C-suite makes it harder to champion and implement DEI initiatives that reflect the experiences of all employees. 

Perceived Trade-offs 

When DEI is viewed as conflicting with performance goals, demonstrating its benefits for innovation, customer satisfaction, and competitiveness becomes critical. 

Retention, Promotion, and Inclusive Policies 

Lack of comprehensive DEI policies with fragmented initiatives fail to address the structural inequities in hiring, retention, and promotion.

EMA Partners’ Viewpoint

Implementing actionable strategies would pave the way to advance DEI in Indian corporates 

Company-Led Initiatives 

Organizations to create development programs supporting workforce re-entry, mentorship, and leadership opportunities for underrepresented groups, including tailored initiatives to strengthen the diverse talent pipeline and prepare future leaders. 

Inclusive Hiring Practices 

Reduce biases in hiring through inclusive job descriptions, diverse panels, and AI-based talent assessments to ensure fair evaluations and representation. 

Policy Changes 

Non-discrimination policies, flexible work arrangements, and childcare benefits help retain diverse talent ready for leadership roles. Regularly revise recruitment, promotion, and succession policies to ensure equal opportunities. 

Measurable Metrics 

Set clear goals and track recruitment diversity, retention rates, pay equity, and employee satisfaction enabling organization to measure progress and identify areas for improvement in its DEI efforts. Infuse DEI as KRAs for leaders to significantly improve outcomes. 

Leadership by Example 

C-suite executives to demonstrate commitment to DEI through actions, fostering an inclusive organizational culture. Appointing Chief Diversity Officers with a clear mandate could aid in driving DEI strategy. 

Early Pipeline Development at Grassroots 

Invest in long-term initiatives to diversify talent pipelines by forging industry-academia partnerships that enhance curricula, mentorship, and internships equally across all fields of education. Launch early outreach programs to spark interest of diverse students in STEM programmes and careers. 

As global and local pressures intensify, boardroom mindset must evolve to recognize DEI in leadership as a strategic asset. Only then will corporate leadership genuinely reflect the diverse and dynamic world it seeks to lead.

​ Sources: 

¹ McKinsey & Company 

² Ministry of Labour and Employment 

³ IBEF, GoI

About EMA Partners

Since 1988, EMA Partners has been serving local and international businesses across all industry sectors. The firm has been instrumental in helping its clients recruit thousands of leaders who have made a deep impact in their organizations and society at large. EMA Partners is also a provider of leadership assessment and other advisory services to our clients. Our expertise lies in assessing, hiring and developing leaders at the Board, C-Suite and Senior Executive level across industries. Our clients include global corporations, local companies and not for profit organisations.

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