"Inclusion and diversity are not just moral imperatives—they are economic imperatives." —Narayana Murthy, Founder, Infosys

This perspective underscores a growing recognition in corporate India that Diversity, Equity, and Inclusion (DEI) must be embedded into the core of business strategy. As ESG considerations continue to gain prominence, DEI is emerging as a strategic imperative for Indian businesses.

In a nation as inherently diverse as India—with its rich assortment of languages, cultures, and identities—DEI transcends regulatory compliance to become a vital enabler of innovation, informed decision-making, and long-term value creation. Integrating DEI into corporate strategy enables organizations to unlock underutilized talent, strengthen workforce resilience, and foster inclusive growth.

These efforts are not only socially significant but also economically strategic contributing meaningfully to India’s vision of becoming a $5 trillion economy by 2025.

DEI Principles

DEI is an important component of ESG. It helps companies create a workplace culture where all human resources are valued:

i. Diversity — Recognizes the varied perspectives, experiences, and backgrounds individuals bring. Diverse teams generate a broader spectrum of ideas and insights, fostering innovation and well-rounded decision-making.

ii. Equity — Ensures fairness and addresses barriers preventing full participation and advancement. Equity measures provide equal opportunities and access to resources, support, and growth.

iii.Inclusion — Creates an environment where all individuals feel respected and empowered. Inclusive practices promote open communication and mutual respect at all levels.

DEI in India: Progress and Challenges

India’s corporate sector is demonstrating meaningful progress in embedding Diversity, Equity, and Inclusion (DEI) into the fabric of organizational strategy. Increasingly, companies are moving beyond symbolic efforts and adopting structured, multi-layered initiatives aimed at promoting inclusive work cultures. These include promotion-focused approaches like allyships and Employee Resource Groups (ERGs), prevention-focused efforts such as unconscious bias training, and response-focused systems including robust grievance redressal mechanisms. Importantly, organizations are balancing individual-focused programs like career sponsorships with wider institutional efforts that foster sustained inclusion.

Infrastructure-related improvements are also becoming more visible. From accessible transport and separate ramps to gender-neutral and disability-inclusive restrooms, businesses are gradually making physical workspaces more inclusive. According to WTW (India Wellbeing Programmes Survey 2022), 33% of companies have gender-neutral restrooms and 20% offer diversity scholarships, indicating a growing commitment to accessibility.

Policy innovation is another major area of progress. Many leading firms are introducing gender-neutral leave policies, with some offering up to 12 weeks of secondary carrier leave and providing equal leave entitlements for adoption, childbirth, and surrogacy. This move challenges traditional caregiving stereotypes and promotes more equitable caregiving roles within families.

Employee well-being is now recognized as a foundational element of DEI strategy. The WTW Wellbeing Programmes India Survey (2022–23) reports that:

- 71% of companies offer diversity and inclusion training

- 71% provide accessible office spaces

- 71% ensure gender-neutral workplace communication

- 62% offer inclusive benefits options

Beyond the workplace, companies are increasingly including families in wellness initiatives. WTW data shows that 50% of companies cover spouses and 39% cover parents under emotional wellbeing programs, indicating a broader, more inclusive understanding of employee support systems.

A growing number of firms are also targeting specific health conditions under lifestyle risk management initiatives. These include programs focused on weight management (32%), sleep wellness (29%), cardiovascular health (26%), diabetes (26%), and cancer support (25%)—all contributing to a more holistic DEI framework.

This momentum is further supported by progressive legislation such as the Rights of Persons with Disabilities Act (2016), the Transgender Persons (Protection of Rights) Act (2019), and the HIV/AIDS Prevention and Control Act (2017), creating an enabling environment for businesses to align policy with practice.

Despite these advancements, challenges remain. India ranks 135th out of 146 countries on the WEF's Global Gender Gap Index (2022), with women's labor force participation still below 23%. While the representation of women on corporate boards has improved significantly, female chairpersons remain rare, accounting for under 5% of boards, and only 7% of executive directors are women.

Additionally, the inclusion of persons with disabilities (PwDs) is still limited. PwDs make up less than 0.5% of the workforce in many organizations, despite an increase in employment in NIFTY 50 companies. Although sectors like service and technology are leading the way in employing PwDs, more needs to be done to expand representation across other industries and foster an inclusive culture.

While India's corporate sector has made significant progress in advancing DEI, these ongoing challenges highlight the need for further efforts to ensure inclusivity, equity, and diversity across all sectors.

The Role of Diversity, Equity and Inclusion in ESG

Diversity, Equity, and Inclusion (DEI) lie at the heart of the ‘Social’ pillar in ESG. Without a focused approach to DEI, ESG strategies risk falling short of their intended impact. Transparency through the disclosure of meaningful DEI data is essential—not just for listed companies but increasingly for small and medium enterprises as stakeholder expectations evolve.

Over time, both the government and the private sector in India have recognized the need for DEI strategies and implemented key measures to promote diversity in the workplace. Initiatives such as extending maternity leave from 12 weeks to six months, the promotion of LGBTQ+ rights in organizations, and the passing of the Right of Persons with Disabilities Bill in Parliament all play a critical role in advancing social equity within the country. These efforts reinforce DEI as a foundational element of sustainable and responsible business practices.

Key Aspects of DEI Reporting under the BRSR (Business Responsibility and Sustainability Reporting)

"SEBI’s mandate requiring at least one female director on the boards of all listed companies has led to a significant rise in female representation—growing from just 5% in 2012 to 17% in 2022, as reported in Chris Bardsley’s article 'DEI: Moving up the agenda in India?'. This shift reflects a growing commitment to inclusivity in India’s corporate governance.

DEI has also been strengthened through SEBI’s Business Responsibility and Sustainability Reporting (BRSR) framework, which mandates the top 1000 listed companies to disclose their DEI practices as part of ESG reporting. This regulation enhances accountability and transparency, signaling that DEI is an essential component of corporate governance and sustainability. 

Under the Social Pillar, companies must disclose:

1. Gender and Identity Representation:

Companies are required to disclose the gender composition of their workforce, including permanent employees, contractual workers, and individuals in leadership roles. This promotes greater transparency around workplace inclusion and representation.

2. Attrition and Parental Leave Data: 

This reveals a company's commitment to providing a supportive and inclusive work environment.

3. Workplace Accessibility:

 Companies must report on accessibility for employees with disabilities.

4. Equal Opportunity Policies:

 Including anti-discrimination efforts and grievance redressal mechanisms.

SEBI’s BRSR framework emphasizes the importance of DEI in corporate governance by mandating transparency on gender representation, attrition, parental leave, accessibility, and equal opportunity policies. This ensures accountability and fosters a more inclusive, supportive workplace. As companies align with these standards, DEI becomes a key driver of sustainable and responsible business practices in India.

Case Study: How Infosys is on the Path of Leading ESG and DEI Efforts in India

In India's growing corporate sector, Environmental, Social, and Governance (ESG) practices are becoming crucial for sustainable business success. Infosys, a top IT company, stands out by making Diversity, Equity, and Inclusion (DEI) a core part of its ESG strategy. Here’s how they’re setting an example for India and beyond:

Infosys’ DEI Initiatives Under ESG (Data from Infosys ESG Report 2023-24):

1. Women Empowerment

Infosys is committed to increasing female representation, with women making up 39.3% of their workforce in 2024, aiming for a 45% target by 2030. The company offers leadership programs such as "Bridging the Gap," in partnership with Stanford, which has trained over 500 women leaders. Additionally, Infosys hosts special tech events for women, with over 100 sessions planned for 2024.

2. Inclusive Workplace Policies

Infosys fosters inclusivity through Employee Resource Groups (ERGs), which provide support networks for women, LGBTQ+ employees, people with disabilities, and other underrepresented groups. The company also promotes pronoun inclusion (he/she/they) in official communications to respect and affirm gender identities.

3.  Disability Inclusion

As of 2024, Infosys employs more than 1,130 individuals with disabilities. The company’s Accessibility Lab uses AI to enhance technology accessibility for people with disabilities. Additionally, Infosys runs an internship program specifically for students with disabilities, hiring 10 interns in 2024.

4.   LGBTQ+ Support

Infosys supports LGBTQ+ rights by adhering to the UN Free & Equal principles. In recognition of its inclusive practices, the company scored 100/100 in the Corporate Equality Index (CEI) for LGBTQ+ inclusion in 2023.

ESG Recognition in India & Globally

Infosys’ commitment to DEI has earned it numerous accolades, including:

    -  Top 10 Best Companies for Women in India (2023)

    - Disability Confident Employer (Australia, 2024)

    - 100/100 score for LGBTQ+ Inclusion (US, 2023)

Infosys exemplifies how strong ESG policies—particularly in DEI—can foster employee trust, innovation, and enhance global reputation. As India’s workforce becomes more diverse, companies that prioritize fairness and inclusion are set to lead the way forward.

Conclusion

While India has made significant strides in implementing DEI initiatives, several barriers persist. Issues such as the lack of DEI metrics, cultural resistance, and inadequate training must be addressed to unlock the full potential of DEI strategies.

To harness the benefits of DEI, companies must adopt a strategic, long-term approach. Addressing these challenges and fostering a supportive environment will not only lead to stronger business performance but also contribute to a more inclusive and equitable workforce.

By committing to DEI, businesses can create lasting value—enhancing both social impact and financial success in India's evolving corporate landscape.

References:

https://www.weforum.org/publications/measuring-stakeholder-capitalism-towards-common-metrics-and-consistent-reporting-of-sustainable-value-creation/

https://www.stantonchase.com/insights/blog/the-crucial-role-of-dei-in-esg-reporting

https://www.elliottscotthr.com/hr-insights/local-hr-recruitment-insights-and-global-trends/dei-moving-up-the-agenda-in-india/

https://www.peoplematters.in/article/diversity/dei-for-indias-economic-boost-39439

https://www.sebi.gov.in/sebi_data/commondocs/may-2021/Business%20responsibility%20and%20sustainability%20reporting%20by%20listed%20entitiesAnnexure1_p.PDF 

https://www.infosys.com/sustainability/documents/esg-2023-24/diversity-equity-inclusion.pdf