Hues of inclusion fade in India Inc's diversity palette as DEI gets global pushback

Mumbai | Bengaluru: A quiet but subtle shift has been underway across India Inc in the last few months, with several companies dialling down on diversity efforts, in a departure from their more aggressive stance in the past.

Executive search consultants, diversity, equity and inclusion (DEI) experts, and company officials told ET that a combination of factors including competitive pressures, a global DEI pushback and talent scarcity for certain roles has prompted many organisations to tone down their focus on diversity. Some high-profile diversity hires have been scaled back and corporates are, in many cases, not asking for diversity fits as they would insist on in the past.

A leading conglomerate, for instance, decided not to go overboard with diversity hiring this year, even if it meant not meeting their stated goals.


"You can't pick and choose only from a DEI segment, companies have to look beyond. The thinking is to first get the skill sets right, then worry about DEI," said R Suresh, managing director of executive search firm Insist Consulting.

Businesses are prioritising operational excellence rather than forcefully achieving diversity quotas.

According to Suresh, the competitive landscape for companies is so high that they are more worried about aspects like building the product, serving the market, implementing AI, etc. to stay ahead in the race. "Corporates need merit. Market pressures are very high-companies don't care if it's a man or a woman who is delivering. The focus is to increase their merit and competitiveness rather than on a diverse culture."

Business Interests First
This apart, for new-gen businesses like fintech, ecommerce, biotech, solar, etc., the accent is on people who have knowledge and experience. The scarcity of skillsets is making companies overlook their DEI agenda as they have to pick from available options.

Earlier, companies might have specifically sought women in roles like group legal counsel, HR or marketing and communications to meet diversity targets. “In the last year, only one search said—‘All things equal, I prefer a woman, but you bring the right people’,’” notes Suresh.

Even DEI conferences and initiatives have felt the chill. “We see a dip in the kind of work we were doing. Our DEI thought leadership conference early this year was cancelled because we didn’t get sponsors—people were cautious about sponsoring or even speaking at it. This was just after the time Trump came in—first thing people did was pull back,” recalls Nirmala Menon, CEO of diversity and inclusion consulting firm Interweave Consulting.

Indian companies are not immune to global trends. The Trump administration’s pushback against DEI after coming to power has affected not just US companies but others as well. India Inc, too, is trying to navigate this scenario by doing its work quietly. A senior board member, speaking anonymously, captures the prevailing sentiment: “Indian companies always protect their business interests while taking cues from powerful nations. We’ll go slow and do things quietly. No one wants to be vocal or overly public about DEI rights now.”

Some organisations have removed DEI mentions from websites, only to rebrand them under employee engagement, talent strategy, or belongingness. “Companies are continuing to do what they are doing. There are initiatives around returning women, leadership development, managing maternity, menstrual leave, etc., but they aren’t focusing on it with the same momentum they used to,” says Menon.