Women Leaders Help Indian Companies Earn 50% More, Shows Inclusion Index 2025

• There is a notable gender disparity in leadership positions in India, according to the Marching Sheep Inclusion Index 2025
• Research indicates that leadership that is gender diverse improves company performance
• The study emphasizes the necessity of stepping up initiatives to advance women into leadership roles
   

In spite of unequivocal proof that firms with female leaders are more profitable, the “Marching Sheep Inclusion Index 2025” indicates Indian corporate leadership continues to be plagued by a huge gender deficit. The report, which studied 840 listed corporations in 30 sectors such as steel, pharma, BFSI, FMCG, and IT, identified that companies with greater gender diversity at the leadership positions witness 50% higher after-tax profits. This highlights that gender inclusion is not only a social benefit—it's a business benefit.

Nonetheless, the results also reveal entrenched representation challenges. More than 63 percent of the firms polled had no women in Key Managerial Positions (KMPs), and women comprised just 22 percent of the overall workforce, much lower than the 28 percent in the 2023–24 Periodic Urban Labour Force Survey. While compliance has ensured gender diversity at the board, the mid-management tier—the key for creating future leaders—remains severely underrepresented.

The report cites “hourglass effect" in women's career advancement: excellent entry-level representation, visible boards, but a precipitous drop in the middle ranks. This trend indicates that although recruitment efforts have improved, internal retention, promotion, and leadership development systems are not sufficiently enhancing women's careers.

Sonica Aron, Marching Sheep Founder and Managing Partner, pointed out that inclusion takes more than representation—it needs influence. "We don't want more women in the room," she stated. "We need them at the table, making decisions and defining strategy." She underlined that inclusion needs to transcend numbers to tackle structural power relationships, creating real access, authority, and accountability.

The report creates a roadmap for transformation, requesting mentorship initiatives, fair promotion practices, leadership development programs, and flexible work arrangements. It invites regulators, HR leaders, and CXOs to assume substantive responsibility for driving inclusion—not as a tick-box exercise, but as an overarching business imperative. In addition to better profitability, the report emphasizes that authentic diversity develops lasting resilience and moral robustness within organizations. Without systemic changes, inclusion risks becoming a performativity concept rather than a transformative force.