New Delhi, July 14 Corporate social responsibility (CSR) spending on skilling needs to improve substantially to unlock India’s workforce potential on the global stage, according to a report on Monday.
The report by rating agency Crisil said India needs huge investments in skilling, which will help realise the country’s demographic advantage. It noted that the burden of investment for skilling must be lifted together by both public and private sectors.
India has an unprecedented opportunity as developed economies across the Gulf Cooperation Council, Europe, and Australia face acute skill shortages, especially in critical sectors such as healthcare, information and communication technology, renewable energy, logistics, and construction.
With 65 per cent of its population below the age of 35 and, thereby, abundant workforce supply, it can easily bridge gaps in the global labour market.
"CSR investments must evolve beyond isolated skilling activities. When strategically integrated with government initiatives, CSR has immense potential to act as an enabler, significantly strengthening India's global workforce readiness. Our analysis highlights that to effectively harness its potential, CSR must strategically identify and prioritise skills in a phased manner,” said Binaifer Jehani, Business Head, Risk Solutions – Assessments and Social Sector Consulting, Crisil Intelligence.
With government initiatives such as the Pradhan Mantri Kaushal Vikas Yojana, skilling has got some attention under CSR in the country, yet there is ample headroom for improvement, the report said.
Of the Rs 2.22 lakh crore spent by corporates on CSR since fiscal 2015, only 3.5 per cent has been channelled towards skilling.
Besides, CSR initiatives have been fragmented and focused on conventional or informal trades, disconnected from the global employment ecosystem. This underscores the need for a sharper, more strategic approach.
The report strongly advocates CSR support for robust training infrastructure, particularly smart labs, and simulator-based facilities, which replicate real-world scenarios. Further, language and cultural labs are also essential for ensuring candidates are internationally employable and can adapt to diverse work cultures.
In addition, collaborations between sectors can also create strong systems for skilling, such as a consortium of automotive companies jointly funding global-standard electric vehicle technician training, the report said.
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