Only 17% of India Inc. Board Directors Actively Shape Strategy, states ISB’s Corporate Governance Report 2025

The Corporate Governance Report 2025 from the Indian School of Business offers a timely and rigorous examination of how Indian corporate boards are evolving and where critical gaps remain. Drawing on insights from over 200 directors of BSE 500 companies, the report moves beyond structures and compliance to examine the behaviours, judgement, and leadership practices that define effective governance today.

While Indian boards demonstrate strong compliance maturity, the findings reveal a clear shortfall in strategic engagement, independent thinking, and candour. Many boards continue to operate as passive reviewers rather than active stewards of long-term value, with limited involvement in shaping strategy, anticipating risk, or constructively challenging management. Gaps in foresight, information diversity, and boardroom courage are shown to constrain decision-making amid rising complexity and global exposure.

Structured around three dimensions of guidance and oversight, board functioning, and leadership, the report evaluates committee effectiveness and board–management relationships. It underscores the need to strengthen strategic dialogue, improve preparation and engagement, and foster cultures that encourage transparency, dissent, and independent perspective.

The Board’s Looking Glass serves as both a diagnostic and a call to action, inviting directors, senior leaders, and governance professionals to reflect on what it truly means to govern today and how Indian boards can evolve from being compliant to genuinely future-ready.