Commitment from the private sector is necessary to ensure improved gender diversity on the boards of corporates, says a report.
For ensuring gender diversity, emphasis should also be laid on government efforts and corporate transparency, consultancy EY said today.
"...Private sector commitment is necessary to lead to improved gender diversity on boards and senior leadership ranks," it said.
As per the report, corporate governance practices and disclosure standards are also important.
"... Increased attention from public officials keeps pressure on the private sector and results in faster change," it added.
All listed companies are required to have at least one woman director on its board from October 1, according to capital market watchdog Securities and Exchange Board of India (Sebi).
Going by estimates provided in the report, in 2013, only 4.7 per cent of India's corporate directors were women.
"This compares with 40.5 per cent for Norway which has the highest share of women on boards; 20.7 per cent in the UK; 16.9 per cent in the US; 7.7 per cent in Brazil and 1.2 per cent in the UAE.
"That board diversity enhances corporate performance and failure to address the gender gap can have economic consequences has been borne out by ongoing research," it said.
Sonu Iyer, Partner and Diversity Leader for EY India, said that introduction of quotas would help to achieve greater diversity on corporate boards, but it is equally imperative to make significant investments towards enabling women to take on board positions for them to make an impact in these roles.
