Gender inequality in India’s corporate sector manifests in various ways, from wage disparities to unequal opportunities for leadership roles. Despite legal frameworks advocating gender equity, economic realities often hinder their implementation. Women in India face several challenges in securing equal representation in the workforce, including socio-cultural biases, discriminatory hiring practices, and lack of access to professional networks.

The corporate sector is a critical driver of economic growth, and gender inclusivity has been linked to increased productivity and innovation. However, the underrepresentation of women in leadership positions and their concentration in lower-paying roles limit the sector’s overall potential. Additionally, the persistence of the wage gap demonstrates how gender biases are embedded in organizational structures. While policies such as maternity benefits and anti-harassment laws provide some protection, they often fall short due to inadequate enforcement and workplace cultures that fail to promote gender equity.

The economic implications of gender inequality extend beyond individual companies to the national economy. Studies have shown that gender-diverse companies tend to perform better financially, and increased female workforce participation can significantly contribute to GDP growth. Therefore, addressing gender disparity in the corporate sector is not just a matter of social justice but also a strategic economic priority.

This blog explores the implications of gender inequality in corporate India, focusing on key areas such as gender budgeting, wage disparity, the glass ceiling effect, and the conflict between legal provisions and economic realities. By analyzing these factors, the paper aims to provide insights into necessary policy interventions and corporate strategies for achieving gender equality in the workplace.

Analysis

Despite efforts to encourage diversity through legislation and policy, gender inequality is still a major problem in India’s corporate sector. In the World Economic Forum’s 2024 Global Gender Gap Index, India slipped two places to rank 129th out of 146 countries.

Gender inequality persists in India’s corporate sector, manifesting in workforce participation, leadership representation, and corporate policies. Recent data indicates that women’s representation in the workforce has stagnated at 26% as of 2024, with a mere 16% occupying executive or C-level positions. The survey also pointed out a notable gender disparity in fields like manufacturing, transportation and technology that are dominated by men. This plateau highlights enduring challenges in achieving gender parity.

Women constitute less than 20 per cent of the overall workforce and hold just overall workforce and hold just over 10 per cent of KMP positions, while female directors account for less than 20 per cent of the total board director positions, according to the ‘Mind the Gender Gap’ report by CFA Institute and CFA Society India.
Despite these disparities, there has been progress in women’s entrepreneurship, with women-led startups increasing from 1,528 in 2017 to 17,001 in 2023. Corporate policies aimed at promoting diversity and inclusion have yielded mixed results. While 83% of surveyed organizations reported an increase in women in leadership over the past five years, only 50% of women leader’s experience pay parity with male counterparts.

These statistics underscore the need for more effective strategies to address systemic gender biases and promote equitable representation and compensation in India’s corporate landscape.

Role of Gender Budgeting

Gender budgeting is a strategy that creates budgets that work for everyone. By considering and analyzing the unique and diverse needs of every person, gender-responsive budgets strive for a fair distribution of resources. For example, gender budgeting can be seen in the Union Budget of India and how it has evolved over time to address gender disparities and promote women’s welfare.

India adopted its first gender budget in 2005-06, marking a significant step towards addressing gender disparities in resource allocation. Nearly 5% of the total expenditure for the financial year 2023-24 was allocated toward issues affecting women in India. The “Mission Shakti” initiative was started by the Indian government through the Ministry of Woman and Child Development (MWCD). It is a comprehensive program for women’s empowerment that aims to improve safety, empowerment, and welfare actions for women between 2021 and 2025.

India adopted its first gender budget in 2005-06, marking a significant step towards addressing gender disparities in resource allocation. Nearly 5% of the total expenditure for the financial year 2023-24 was allocated toward issues affecting women in India. Gender Budget allocation in the total Union Budget increases to 8.86% in FY 2025-26 from 6.8% in 2024-25.

India’s progress in gender-responsive budgeting (GRB) is commendable on paper, with a notable increase in the share of gender budgets. However, simply increasing allocations does not address the systemic barriers that women face. To truly empower women, India needs to align its GRB with global standards, improve data tracking, and implement robust evaluation mechanisms. Programs like the Ujjwala Yojana have made a positive impact, but structural issues, such as gender-based data gaps and uneven adoption across states, must be addressed for GRB to be truly transformative. Without these reforms, GRB risks remaining a symbolic gesture rather than delivering tangible improvements for women’s lives.

Impact of Gender Wage Gap

The gender pay gap, often known as the gender wage gap, is a statistic that indicates how much men and women make. Inequality is measured by this metric, which encompasses a notion that goes beyond the idea of equal compensation for equal labor. In simple words The gender wage gap refers to the difference in earnings between men and women, where, on average, women earn less than men for the same work or similar work.
Gender wage disparity remains a significant issue in India’s corporate sector, with recent data highlighting substantial gaps across various roles and industries. According to the World Economic Forum’s Global Gender Gap Report 2024, India ranks 129th out of 146 countries, with women earning, on average, ₹40 for every ₹100 earned by men. This highlights a significant economic gender gap by showing that women make about 40% of what men do.
The difference is also noticeable in leadership roles and the makeup of the workforce. According to a 2024 report by the CFA Institute, women make up less than 20% of India’s workforce. Women only make up 18.4% of board director positions in corporate leadership, and they only make up slightly more than 10% of key managerial personnel positions. Furthermore, female key managers receive less than 25% of the compensation paid to their male counterparts, and female directors only receive 44% of the median salary of their male counterparts.

This ongoing gender pay gap is caused by a number of factors:

• Occupational Segregation: Women’s earning potential is limited because they are frequently concentrated in lower-paying positions or industries.
• Leadership Representation: Women’s influence over corporate policies and compensation structures is limited due to their underrepresentation in senior positions.
• Cultural norms: Women’s household duties are frequently given priority by society, which can disrupt careers and limit opportunities for growth.

Enforcing equal pay laws, encouraging women’s participation in a variety of industries, and putting in place supportive workplace policies that accommodate both men and women are just a few of the comprehensive strategies needed to address these disparities. To tackle all of these things various policies and laws came into being.
The Equal Renumeration Act, 1976 in India requires that male and female employees performing the same or comparable work receive equal compensation. In addition, the ERA prohibits sex-based discrimination against women in employment-related contexts, including hiring, promotion, and so forth. This law holds employers responsible for any ERA violations in addition to giving women the right to demand equal pay. The principle of ‘equal pay for equal work’ has also been enumerated under Article 39(d) of the Constitution of India, which requires the State to strive for securing equal pay for equal work, for both men and women.

Despite the existence of this law, achieving its objectives in practice has been challenging. Several factors contribute to the gap between the law’s intent and the reality of gender pay disparity in India.

Occupational Segregation: Women are often concentrated in certain sectors or types of work that are traditionally lower-paying. This limits their earning potential compared to men who may dominate higher-paying fields.

Informal Sector: A large portion of India’s workforce is in the informal sector, where labor laws, including the ERA, are often poorly enforced or not applicable. This leaves many women vulnerable to unequal pay practices.

The Impact of Glass Ceiling

Glass ceiling is a figurative visual barrier that keeps some people from rising to senior and managerial positions within a sector or a company.

Despite legal initiatives like boardroom gender quotas, Indian women still face discrimination in corporate leadership positions. Even though women are now employed by many companies, they are still disproportionately underrepresented, particularly in senior positions. Biases in society, a lack of mentorship, and gendered expectations regarding work-life balance are some of the causes. Furthermore, women’s career advancement is restricted by a sizable pay gap and unintentional discrimination that still exists in corporate structures. Despite advancements, it is still challenging for women to rise above the corporate power structure due to ingrained organizational and cultural norms.
Unintentional biases and cultural norms are crucial. Women frequently take on a disproportionate amount of household duties, which can disrupt their careers and slow their advancement. Further impeding women’s career advancement are stereotypes that characterize assertive women as “bossy” while lauding similar qualities in men as “ambitious.”

The impact to women is actually more severe than that, from the fact that they are frequently neglected in processes of career management, and thereby denied the possibility of senior managerial and leadership positions even when they have the needed skills and experience. This causes discrepancies in wages, as women do not get the high salaries and bonuses provided for by male colleagues. Also, the glass ceiling causes women to be excluded from making decisions, which then reduces the amount of diversity in leadership positions. Making the effort to overcome this invisible barrier can also be related to psychological and professional barriers, this is the case of frustration, burnout, and a feeling of career stagnation which in the end lead to insufficient progress and higher risks of dismissal in the workplace.

Clash Between Gender Equality Laws and Economic Realities in India’s Workplace

​In India, the enforcement of gender equality laws in the workplace encounters significant challenges due to the discord between legal provisions and prevailing economic realities. Despite legislative measures aimed at promoting gender parity, such as mandates for female representation on corporate boards, women’s participation in the workforce has stagnated. A 2024 report by Great Place to Work indicates that women’s representation has plateaued at 26%, with only 16% occupying executive or C-level positions.

Economic factors further complicate the effective implementation of these laws. Industries traditionally dominated by men, including technology, manufacturing, and transportation, exhibit significant gender gaps. Conversely, sectors like education and non-profits approach gender parity, suggesting that economic structures and industry norms heavily influence gender representation.

Additionally, societal norms and safety concerns play a pivotal role. Incidents highlighting women’s safety, such as the 2024 protests in Kolkata following the tragic death of a female trainee doctor, underscore the broader issues affecting women’s workforce participation. These concerns not only deter women from joining the workforce but also limit their economic opportunities, thereby hindering the practical enforcement of gender equality laws.

To bridge the gap between legal intentions and economic realities, organizations must cultivate inclusive cultures where women feel valued and empowered. The 2024 report emphasizes that women who experience a sense of belonging are significantly more likely to perceive their workplace positively and identify career growth opportunities.

Simply putting commendations and laws is not a way to true gender equality at the workplace in India. It is very important to focus on structural and economic barriers. A whole lot of things altogether-confining strict legal enforcement policy reform across industry boundaries, and cultural changes-have now become critical. Companies should create an inclusive ambience for their women; invest in their leadership programs; and enforce policy stipulating equal pay as well as career growth opportunities. And only after that, India will be able to create talent workforces where success will be determined by talent and intent, not by gender within the framework of law.

CONCLUSION

The analysis reveals that gender inequality remains a persistent and complex issue within India’s corporate sector. It manifests in various forms, including wage disparities, underrepresentation in leadership positions, and the challenges posed by the “glass ceiling” effect.  Despite legal frameworks and policy interventions aimed at promoting gender equality, economic realities and socio-cultural factors often hinder their effective implementation.  The consequences of this inequality are significant, impacting not only individual women but also the overall productivity, innovation, and economic growth of the corporate sector and the nation.

POLICY RECOMMENDATIONS

To address these challenges and promote gender equality in India’s corporate sector, the following policy recommendations are put forth:

Strengthen Enforcement of Gender Equality Laws: Ensure effective implementation and enforcement of existing laws such as the Equal Remuneration Act, 1976, and other relevant provisions.  This includes strict penalties for non-compliance and mechanisms for monitoring and accountability.

Promote Gender Budgeting: Enhance the effectiveness of gender budgeting by aligning it with global standards, improving data tracking, and implementing robust evaluation mechanisms.  This will ensure that budgetary allocations translate into tangible benefits for women.

Address the Gender Pay Gap: Implement comprehensive strategies to close the gender pay gap, including promoting pay transparency, encouraging women’s participation in diverse industries, and enforcing policies that ensure equal pay for equal work.

Break the Glass Ceiling: Implement measures to address the “glass ceiling” effect by promoting mentorship and sponsorship programs for women, challenging gender stereotypes, and creating pathways for women’s advancement into leadership positions.

Foster Inclusive Workplace Cultures: Encourage organizations to cultivate inclusive workplace cultures that value diversity, promote a sense of belonging for women, and provide equal opportunities for career growth and development.