Closing the leadership gap: Why skilling women for the future is a business imperative

Building a workforce that is agile and future-ready is key to sustainable business success. Over the last decade, India has made notable progress in enhancing women’s participation across industries. The Female Labour Force Participation Rate (LFPR) has grown from 23.3% in 2017-18 to 41.7% in 2023-24, indicating a positive shift towards gender inclusivity in the workforce. However, despite this progress, women’s representation in decision-making roles remains disproportionately low, particularly in high-growth sectors like technology, finance, and manufacturing.

Currently, women constitute less than 20% of the overall workforce and hold only 10% of Key Managerial Personnel (KMP) positions. Even in industries like IT, where senior female leadership grew from 18.7% in 2023 to 23% in 2024, still women continue to be underrepresented at the highest levels of leadership.

This is more than a gender issue – it is a business imperative. Research indicates ensuring equal workforce participation could add $2.9 trillion to India’s GDP by 2025, unlocking immense economic potential by leveraging the currently underutilized female workforce. This staggering figure underscores why equipping women with future-ready skills is not just a moral responsibility but a business necessity.

Why Women in Leadership Makes Business Sense

It’s simple: diverse leadership teams perform better. According to research by McKinsey & Company, studies show that companies with gender-diverse leadership are 21% more likely to experience above-average profitability. Industries such as healthcare, where women make up 41% of the workforce, and consumer services, where they account for 30%, have consistently demonstrated strong growth. However, in industries like construction and power, women still represent just 3-4% of the workforce with little progress over the years. The key question remains: what’s holding women back, and how can these barriers be addressed?

Challenges Women Face in Reaching Leadership Roles

• Skills Gap in Emerging Industries: One of the biggest barriers is the lack of access to high-demand skills, particularly in fields like AI, data science, and cloud computing. A UNESCO report suggests that only 16% of Indian women pursue STEM careers, compared to 35% globally. Without targeted efforts to bridge this gap, leadership opportunities in technology-driven industries will remain out of reach for many women. Early intervention, particularly through upskilling initiatives during mid-career stages, can be a game-changer in helping women break the leadership barrier. Furthermore, a recent World Economic Forum report indicates that at the current rate of progress, it will take 132 years to close the global gender gap in leadership roles. AI, automation, and emerging technologies are reshaping job roles, and without proper skilling, many women risk being left behind.
• Cultural and Societal Norms: There remains an ingrained expectation that women should prioritize caregiving over careers. Even in corporate settings, unconscious biases frequently result in women being overlooked for leadership positions despite having comparable, or even better qualifications to their male counterparts.
• Lack of Mentorship and Networking: Women professionals often receive limited access to structured mentorship and networking opportunities compared to their male colleagues. Studies show that 75% of women in leadership roles credit mentorship for their success, yet only 37% have access to structured mentorship programs. This gap needs to be addressed to facilitate career advancement.

How Do We Fix This? Practical Solutions for Change

• Leveraging AI-Powered Learning for Personalized Upskilling: Organizations must prioritize continuous learning to equip women with the skills needed for leadership roles. AI-driven learning platforms, use personalized recommendations based on career trajectory, skill gaps, and industry trends, ensuring that women receive targeted learning opportunities aligned with their professional growth. For example, AI-driven training programs at companies like Accenture have helped women transition into high-tech roles by providing tailored learning pathways in cloud computing and cybersecurity.
• Building Inclusive Workplace Cultures and Programs: Inclusivity extends beyond hiring —it involves ensuring that women receive active support in leadership roles. Providing equal access, clear pathways and unbiased selection for leadership development programs can accelerate career progression and close the gender gap. Path 2 Progress is a program we have launched internally in India to create an equitable opportunity for learning, coaching and creating pathways that can act as a stimulus to develop future leadership skills. Employee Resource Groups (ERGs) are also an excellent way to foster a culture of inclusion, some examples that Cornerstone has internally include Women @ Cornerstone in India, Working Parents & Caregivers groups, etc.
• Creating Strong Mentorship and Sponsorship Networks: Women need champions in the workplace. Senior leaders—both men and women must actively mentor and sponsor women rising through the ranks. For example, leading companies like TCS have implemented mentorship programs that have increased women’s leadership representation by 35% over five years.
• Embracing Workforce Agility Through Digital Transformation: The rise of automation and digital transformation is creating new job opportunities in fields like AI, cloud computing, and cybersecurity. Women must be equipped with skills in these areas to ensure they are not left behind. Organizations investing in reskilling programs, like IBM’s SkillsBuild, have seen increased female participation in emerging tech roles, helping close the digital gender gap.

The Role of Policy and Government Support

The Indian government has taken significant steps to promote gender diversity in the workforce. The recently announced 2025-26 Budget aims to integrate 70% of women into the workforce, reinforcing a strong commitment to gender inclusivity. Additionally, international collaborations, such as the U.S.-India Alliance for Women’s Economic Empowerment, bring together businesses and policymakers to create better skilling and employment opportunities for women.
The Time for Action is Now

Empowering women with future-ready skills isn’t just about fairness, it is about ensuring the long-term economic growth of India. The talent and ambition are there, but the opportunity needs to be unlocked. As business leaders, we must challenge outdated norms, rethink leadership development, and commit to tangible actions that support women in their careers. The time for waiting is over—it is time to act. By doing so, we will not only build a more equitable workforce but also create a stronger, more competitive India for future generations.

Disclaimer: The views expressed in this article are those of the author/authors and do not necessarily reflect the views of ET Edge Insights, its management, or its members