The DEI Conundrum: India at a Crossroads
Introduction: The Backlash Against DEI Policies
In recent months, Diversity, Equity and Inclusion (DEI) policies have faced a significant backlash in the United States of America (US). With increasing political and legal pressures, major corporations such as Amazon, Meta and Target have started scaling back their DEI initiatives. These rollbacks threaten decades of progress in fostering inclusive workplaces. These steps have affected women and minority employees and entrepreneurs who relied on these policies for access to opportunities.
India stands at a crossroads
The implications of these cutbacks extend beyond the U.S., as many multinational corporations (MNCs) headquartered in the U.S. operate in India. Historically, Indian corporations have often mirrored Western trends, but this moment demands divergence. Retreating from DEI, risks erasing hard-won progress in gender equality and workplace fairness. India must resist this cascading effect, particularly, given its own sociocultural dynamics.
India’s DEI Journey
In India, companies are steadily progressing toward greater diversity and inclusion without abandoning their core objectives. Tata Consultancy Services, for instance, with a global workforce of 500,000, has a 35% female representation, including 15% in leadership roles. Similarly, Infosys boasts a 40% female workforce, Hindustan Unilever stands at 45% and Accenture leads with nearly 48% women employees. Lemon Tree Hotels is renowned for its inclusive programmes and policies, with 12% of its workforce comprising differently-abled individuals.1 To conclude, India’s DEI journey has shown promise. Unlike the U.S., where DEI is politically polarised, India’s progress is reinforced by legal mandates, enshrined in the constitution as well. Some of these include:
• Article 15 of the Indian Constitution: Article 15 prohibits discrimination against citizens on the basis of religion, race, caste, sex, or place of birth. It also states that citizens cannot be subject to any disability, liability, restriction, or condition based on these grounds.
• Prevention of Sexual Harassment Act: Safeguards women against workplace harassment, fostering safer environments.
• The Maternity Benefit Act of 1961: Supports retention of women in the workforce, combating the “leaky pipeline”
• The Rights of Persons with Disabilities (RPwD) Act, 2016: Ensures equal opportunities and protection for persons with disabilities.
• BRSR Reporting: Mandates diversity related disclosures, pushing firms to address gender and other gaps.
Yet challenges persist. For instance, LGBTQ+ inclusion remains tokenistic in many sectors, often mandated by overseas parents.India’s DEI framework is thus still evolving—and vulnerable to global headwinds. DEI policies have played a crucial role in increasing women’s participation in leadership roles and reducing biases in hiring and promotions. A regression in these efforts could stall the advances made over the years, reinforcing existing gender disparities. In a country where only 19% of senior management roles is held by women (World Economic Forum, 2024), weakening DEI frameworks could set progress back by years.
The Cascading Risk
While Indian firms claim resilience, the U.S. retreat poses three key risks:
A. Investor Pressure: Much of gender diversity and LGBTQ+ representation progress has been driven by MNCs adopting global DEI standards flowing from parent entities. If Western companies roll back such commitments, Indian corporations may feel less pressure to prioritise related policies. Global investors, influenced by the U.S.’ ESG scepticism, may deprioritise DEI metrics, pressuring Indian firms to follow suit.
B. Merit, Excellence, Intelligence (MEI): The rise of “Merit, Excellence, Intelligence” (MEI) rhetoric—promoted by well-known figure —could also normalise exclusionary hiring in India’s competitive job market. The ideological pushback in the U.S. could find similar opposition in India. Conservative voices may cite the U.S. rollback as a justification to argue that DEI policies are unnecessary or divisive, despite clear evidence of their benefits in fostering inclusive and innovative workplaces.
C. Regulatory Erosion: If India’s DEI mandates (e.g., BRSR) lose government support, corporate accountability could decrease, reversing gains in women’s workforce participation (currently 37%5 vs. 61% global average6). The Impact of DEI Rollbacks on Women and Marginalised Groups The U.S. retreat on DEI is not just a policy shift—it is a betrayal of generations of women who climbed their way up into boardrooms, factories and labs despite systemic barriers. However, when America stumbles, India cannot afford to fall. For every corporate DEI programme dismantled abroad, a ripple could reach here: a hiring manager may hesitate to shortlist women and / or individuals from other marginalised sections for leadership roles, with investors slashing funding for diverse groups (including women-led startups led) and families whispering, “See? Even the West says equality has gone too far.” The dominoes of progress—thoroughly weighted through laws—could crash.
What Can Be Done?
Instead of following Western trends, Indian corporations must recognise the essential value of DEI policies. Companies should take proactive steps to maintain and strengthen diversity and inclusion efforts, ensuring that progress toward workplace diversity is not hindered.
• Strengthening Local DEI Policies: Indian companies should design sustainable DEI frameworks tailored to the country’s unique socio-economic challenges (addressing gender, caste, religion, other marginalised groups, etc.) rather than depending on global corporations for leadership in this space.
• Government and Policy Support: While corporate initiatives are crucial, government regulations can ensure that DEI policies remain a priority. Initiatives such as the mandatory requirement for women on corporate boards could be further strengthened.
• Employee-Led DEI Advocacy: Employees and industry bodies should continue advocating for inclusion, even if corporate leadership wavers in its commitment.
The rollback of DEI policies in the U.S. serves as a cautionary tale for India. It presents a crucial moment where Indian companies must decide whether to follow the shifting corporate priorities of the West or forge their own path toward sustainable diversity and inclusion. The latter will not only ensure long-term business success but also contribute to a more just and equitable society. The time to act is now—before the domino effect sets in.
1“Mind the Gap: Why American Companies Are Wrong to Roll Back DEI Policies.” Hindustan Times, 19 Jan. 2025
https://www.hindustantimes.com/top-news/mind-the-gap-why-american-companies-are-wrong-to-roll-back-dei-policies-namitabhandare-newsletter-hindustan-times-101737221386132.html
2 “Article 15: Prohibition of Discrimination on Grounds of Religion, Race, Caste, Sex or Place of Birth.” Constitution of India,
https://www.constitutionofindia.net/articles/article-15-prohibition-of-discrimination-on-grounds-of-religion-race-caste-sex-orplace-of-birth/
3 Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. Apr. 2013. www.indiacode.nic.in,
http://indiacode.nic.in/handle/123456789/2104.
4 https://nhrc.nic.in/sites/default/files/DisabilityRights.pdf
5 Ministry of Labour and Employment, Government of India. 2024. Annual Report: Periodic Labour Force Survey 2023-24.
Directorate General of Employment. https://dge.gov.in/dge/sites/default/files/2024-
10/Annual_Report_Periodic_Labour_Force_Survey_23_24.pdf.
6 World Bank. 2024. Labor Force Participation Rate, Total (% of Total Population Ages 15+) (Modeled ILO Estimate). World
Development Indicators. https://data.worldbank.org/indicator/SL.TLF.CACT.ZS.