With only 3.5 per cent of CSR funds directed toward skilling since 2015, experts call for mandatory allocation, global alignment, and outcome-based incentives to transform India’s workforce into a global talent powerhouse

India’s corporate social responsibility (CSR) spending must evolve from fragmented, check-box efforts into a strategic force driving global employability, experts have said. They called for a mandatory provision under CSR rules that requires companies to allocate a minimum share of their CSR funds to skilling, digital literacy, and human capital development.

With only 3.5 per cent of Rs 2.22 lakh crore in CSR funds since 2015 directed towards skilling, India risks missing a historic opportunity to turn its demographic edge into a global workforce advantage. The urgency is growing as developed economies such as Germany, Japan, and Australia face acute labour shortages in critical sectors, including healthcare, ICT, renewable energy, logistics, and construction.

Meanwhile, India, which is home to one of the youngest populations in the world, remains underprepared to meet this global demand due to low investment, outdated curricula, and weak international alignment in skilling programmes. “CSR investments must evolve beyond isolated skilling activities. When strategically integrated with government initiatives, CSR can significantly strengthen India’s global workforce readiness,” said Binaifer Jehani, Business Head, Risk Solutions- Social Sector Consulting, Crisil Intelligence.

From Compliance To Strategy
The recently released Crisil report, ‘India’s Got Talent’, highlights how most CSR skilling efforts continue to focus on informal, generic trades – such as tailoring or beautician services, with little link to international labour demand or certification systems. The report found that the mismatch between India’s workforce potential and the kind of skills being imparted is stark.

The report warned that without urgent reforms and stronger alignment with global demand trends, India risks missing a major opportunity to convert its demographic advantage into global employability. Experts argued that CSR must now transition from a compliance-led mandate to a strategic, outcomes-oriented investment model. This includes prioritising sectors with high global demand and co-investing in training infrastructure that enables real job placements, not just certificates.

“India does not lack talent – it lacks systems to prepare that talent for the world. Sectoral coalitions, like automotive companies jointly funding EV technician skilling, demonstrate how CSR can bridge skill gaps at scale,” said Monika Pattnaik, Associate Director, Risk Solutions- Social Sector Consulting, Crisil Intelligence.

Experts Call For Policy And Incentive Reforms
To make this shift at scale, India would need a national framework aligning CSR, public skill missions, and international mobility goals. A real-time labour demand dashboard, skill taxonomies matched with overseas job codes, and a recognition system for high-impact CSR initiatives could encourage companies to channel funds more effectively. Industry leaders believe a robust policy environment is needed to make CSR a more potent tool in workforce development.

“CSR should be mapped to national missions like Gati Shakti, Green Hydrogen, and the National Semiconductor Mission. Gender-targeted skilling in rural and aspirational districts should also be prioritised to bridge both skills and inclusion gaps,” said Hemant Jain, President, PHDCCI.

Jain recommends incentivising companies through CSR impact credits tied to job placements, not just training completions. Additionally, co-investment hubs—termed Integrated Skilling Corridors- could be developed along industrial zones such as Delhi–Mumbai or Bengaluru–Hyderabad to house migration-ready training centres funded by CSR.

Experts also suggest that CSR efforts be channelled through sector-specific CSR-skilling missions and supported by real-time labour demand dashboards. Linking efforts with government migration programmes like the Technical Intern Training Programme (TITP) and dual vocational models can enhance international mobility.

A national migration skilling framework, use of skill impact bonds, and recognition systems like ‘CSR Migration Champions’ are also being proposed to bring accountability and scale. “With the right policy mix – skill portability, outcome-based incentives, and simplified reporting, CSR can become a critical pillar in India’s global talent strategy,” Jehani added.

With nearly 78 million net new jobs expected to be created globally by 2030, India’s young population can become a valuable part of international value chains – if equipped with the right skills. Strategic alignment between CSR, government initiatives and industry requirements is now critical to ensure India’s workforce is globally competitive, migration-ready, and future-proof