Women's Day 2024: India Inc should have more than one woman on its board, says Pernod Ricard’s CFO

India Inc needs to allocate more space for multiple women to serve on corporate boards, fostering inclusive growth, said Richa Singh, Chief Financial Officer of Pernod Ricard India.

In an interaction with ETCFO, Singh highlighted that India was among the first developing countries to implement quotas for women on boards in 2013. Presently, 43% of companies adhere to this regulation, but more needs to be done to facilitate greater representation of women in top corporate positions.

"While India was one of the first developing countries to introduce quotas for women on boards in 2013, and 43% of companies are following this rule, there is a need to dedicate more space for more than one woman to be on the board allowing for inclusive growth," Richa Singh said.

According to the Companies Act of 2013, every listed company is required to appoint at least one woman director to their board.

Singh noted that despite women outnumbering men in pursuing higher education in India, they still lag behind in assuming leadership roles in the corporate sector. While both genders enter the workforce at similar rates, men tend to ascend to top positions more rapidly.

The CFO pointed out, highlighting an example that in senior roles within venture capital firms, only 4.9 per cent of partners are female. Although efforts are being made to enhance gender diversity, women in the workforce continue to encounter systemic biases.

Singh emphasized that for achieving a $5-trillion economy, it is necessary to recognize the non-negotiable economic empowerment of women. Implementing gender diversity reforms and doubling the proportion of women in the workforce could potentially elevate India’s GDP growth rate from 7.5 per cent to 9 per cent, according to a study by the International Labour Organization.