Understanding the Executive Decision Against DEI in the U.S. and Its Impact on India
In recent months, discussions around Diversity, Equity, and Inclusion (DEI) have intensified following executive decisions in the United States that advocate for “merit-based hiring.” Former President Donald Trump has positioned himself against what he views as identity-based hiring practices, asserting that opportunities should be granted solely based on qualifications and performance rather than factors like race, gender, or identity.
Some companies like Meta, Amazon, and Google have rolled back DEI initiatives, likely due to shareholder pressures and legal scrutiny. Others, like Apple, Costco, and Cisco, stand firm on their commitment to inclusion. Some, like McDonald’s, have simply rebranded their DEI initiatives while keeping the essence intact. The bottom line? DEI isn’t illegal, but it’s under more scrutiny, and companies need to be mindful of how they design their programs.
Understanding the U.S. Executive Order on DEI
First, let’s be clear—Trump’s executive order doesn’t make DEI illegal for private employers. Rather, it reinforces the long-standing principle that employment decisions should not be based on race, sex, or other protected characteristics. This means that companies can continue to promote diverse hiring pools, remove systemic barriers, and encourage inclusion. However, they must ensure that their programs do not inadvertently discriminate against any group.
For instance, organizations cannot restrict training, leadership development programs, or mentoring initiatives to employees of a particular race or gender. Additionally, hiring practices should not include preferences such as “women candidates preferred” or “men under 35 preferred.” Instead, companies can ensure diversity in applicant pools while still making merit-based hiring decisions. The core message is that DEI efforts must align with equal opportunity principles rather than creating identity-based advantages.
What Should Companies Keep in Mind?
So here are a few best practices I’ve always advocated—long before the anti-DEI movement in the U.S. gained traction—that still hold strong today. If you’re a U.S.-based company or an MNC operating in the U.S., following these principles will not only keep you compliant but also ensure that your DEI efforts remain meaningful and effective:
Private companies should evaluate their DEI initiatives to ensure they comply with the evolving legal landscape. Key considerations include:
- Ensuring Equal Access – All employees should have access to skills development and career advancement opportunities. This will include ensuring accessible infrastructure as well as digital accessibility, bias-free decision-making, and breaking of identity-based stereotypes.
- Avoiding Identity-Based Favouritism – No group should receive preferential treatment at the expense of others. Keep in mind that the customers and consumers of your products and services are as diverse as it gets. So playing favourites is counter-productive to sustainable business growth. For creativity and innovation to thrive in an organisation we need different mindsets, thought processes and ways of doing things.
- Reviewing Hiring Goals – Goals like achieving 40% gender diversity need to be revisited and achieved by reviewing a diverse range of applications rather than implementing hiring quotas. Making the process bias-free, from neutral job descriptions to building selection capability based on a candidate’s ability to do the job rather than affinity to any group etc. is a far better approach.
- Ensuring Neutral Language in Hiring – Job advertisements must not indicate preferences based on gender, race, or any other marginalised identity. On the contrary, building a strong EVP based on equitable policies, processes and communication will attract a relevant talent pool automatically.
- Encouraging Diversity Without Discrimination – Organizations can encourage diverse candidates to apply but must select employees based on qualifications and performance.
Impact on DEI in India
The executive decision in the U.S. does not have direct implications for DEI initiatives in India, as Indian corporate DEI efforts have historically been inclusion-forward rather than diversity-forward. Unlike in the U.S., private organizations in India have never adopted a quota system. Instead, the focus has been on removing systemic barriers, offering vocational and capability-building training, and creating equitable growth opportunities.
While the Rights of Persons with Disabilities (RPWD) Act recommends a 4% quota for PwDs, (unfortunately) the enforcement and monitoring remain inconsistent. Additionally, caste-based reservations exist within government organizations but India Inc. has (un)consciously kept this dimension at bay from its DEI strategy due to various socio-political complexities.
The Bottom Line: No Reason for Fear
DEI professionals and HR leaders in India must address misinformation and fear surrounding these developments. Panic often stems from a lack of clarity or the spread of misinformation. DEI isn’t “dead” in the U.S., and it’s certainly not going anywhere in India or globally. What’s changing is the way companies frame their efforts—moving away from identity-based preferences and towards equal opportunity. It is crucial to continue advocating for inclusion, reinforcing the message that Indian DEI efforts are built on a foundation of equal opportunity rather than enforced quotas.
As the global DEI landscape evolves, Indian organizations should stay committed to fostering an inclusive work environment while ensuring compliance with applicable legal frameworks. Inclusion professionals must lead with knowledge, clarity, and confidence, ensuring that DEI remains a strategic imperative rather than a misunderstood liability.