Diversity hire is an American term and can be popularly heard in MNCs. In India, its equivalent would be reservation for minorities or women. It is not very common in private companies but companies do hire diverse employees to put on a good image and gain attention. LGBTQ+ categories fall under diverse hiring for India. For government or aided institutions, reservations for economically backward categories, minorities, army dependents, etc., can be some benefits that one can get.
Generally, private companies hire on the basis of skill and experience, not diversity.