Representation improved but many women directors still lacking substantive roles in India's boardrooms

While Indian companies have taken measurable strides to appoint women on corporate boards as mandated under the Companies Act 2013, a new report finds that progress toward meaningful representation and impact remains limited.

Around 98% of BSE-200 companies now include at least one woman director on their boards according to the joint study by Khaitan & Co, Aon and Ladies Who Lead —“Presence to Influence: Advancing Women in Indian Boardrooms”. However, despite this progress, the report finds that women’s participation is often symbolic, with many directors lacking substantive roles in boardroom decision-making.

The report combines board composition data from BSE 200 companies (FY 2023–24) with insights from interviews with 40 women independent directors. It highlights that 77% of BSE 200 companies have only 1–2 women on their boards, limiting diversity of thought and meaningful participation, a trend that persists even in larger boards with 15 or more members.

While women make up nearly one-fifth of directors in leading companies, Sukanya Hazarika, Director, Khaitan & Co said: “India’s progress is undeniable… yet sustaining diversity at boards will require us to go beyond compliance. Our research shows that companies need to build a stronger leadership pipeline for women, foster inclusive work culture, and amplify women’s influence in decision making. Companies that embrace this shift are not just ticking the DEI box, they are unlocking stronger governance, innovation and long-term competitive advantage.”

The report found that only 11% of women directors in BSE 200 companies hold executive positions, compared to 65% of men, pointing to the ongoing exclusion of women from key strategic and operational decision-making roles. The underrepresentation is even more pronounced at the chairperson level, with only 7% of BSE 200 and 5% of NIFTY- 500 board chairpersons being women. These positions are crucial for guiding strategic decisions and driving board culture and the limited presence of women in these positions, highlights the gap between representation and real influence. Even in board committees, women remain underrepresented, holding 23% of NRC and CSR seats, but only 14% on Risk Management committees, down from nearly 30% in 2023.

Shilpa Khanna, Associate Partner, Talent Solutions at Aon said, ““Boardrooms are powerful spaces where key decisions are made and people in the room have the power to influence change. To achieve genuine gender inclusion at the top, organisations must boldly rethink their strategies and focus on ways to build critical mass of representation while also harnessing the power of inclusion to ensure women’s participation is substantive and impactful.”

As per the findings, the progress is constrained not only by numbers but by structures. With 97% of women directors relying on networks to secure their first board role, entry pathways remain narrow and exclusionary.

Over 1 in 3 women directors report dismissive attitudes, stereotyping and tokenism, ranging from trivialisation of their presence to subtle questioning of their qualifications and commitment. The report highlights that women directors demonstrate remarkable resilience, often working harder than their male peers to overcome bias and contribute meaningfully to the board.

There is a link between women CEOs and more gender-diverse boards, the report finds. BSE 200 firms led by women CEOs have an average of 31% female board representation, nearly double the 17.7% seen in male-led firms. Yet, women CEOs account for only 6% of leadership, highlighting the urgent need to accelerate advancement of women in top executive roles. The research also indicates that companies with 4–6 women directors tend to report higher overall gender diversity and make sustained progress in equitable workplace policies.

Abha Bakaya, Founder & CEO– Ladies Who lead added, "The most critical part is the action plan, which calls for all ecosystem players to create dialogue around where we want to see change, and what actions can be taken to create lasting impact. This will have a positive outcome for company growth and the larger ecosystem."