Why Education Is Getting the Biggest Share Of India’s CSR Money
CEA Anantha Nageswaran said India must now shift from policy to execution to turn higher education scale into global leadership.
Published : December 17, 2025 at 6:05 PM IST
New Delhi: Education continues to command the largest share of India’s corporate social responsibility (CSR) spending, reaffirming its status as the country’s most preferred social investment sector.
With overall CSR expenditure touching nearly ₹34,000 crore in FY 2023–24, education alone attracted around Rs 12,000 crore, almost one-third of the total, according to the Confederation of Indian Industry’s (CII) Exploratory Study on CSR in Education.
Based on responses from 23 major corporates and foundations, the study reveals a decisive shift in how companies approach education CSR: from traditional philanthropy to outcome-driven, strategic interventions aligned closely with the goals of the National Education Policy (NEP) 2020.
CSR Meets Structural Education Reform
Speaking at the release of the study, Professor Anil Sahasrabudhe, chairman of the National Education Technology Forum, said India is entering a phase where policy reform, public funding and corporate participation are beginning to align.
“The Anusandhan National Research Foundation will significantly boost India’s research ecosystem by funding both high-end research projects and capacity-building in Tier-2 and Tier-3 institutions, addressing long-standing funding limits,” Sahasrabudhe said.
He also highlighted sweeping regulatory reforms proposed under the upcoming higher education bill. “Bodies like the UGC, AICTE and NCTE will come under a single umbrella, creating a single-window approval system for most academic programmes,” he noted, calling it a major step towards reducing fragmentation and regulatory overlap.
Underlining the impact of NEP 2020, Sahasrabudhe said India’s education system has become “student-centric”, with flexibility at its core. “Multiple entry-exit options, multidisciplinary education, credit transfers and the National Credit Framework have transformed how students learn,” he said. Platforms such as SWAYAM, the Academic Bank of Credits and DigiLocker-linked academic IDs now enable seamless learning, evaluation and credential sharing across institutions.
On the emerging concept of Education 5.0, he stressed that artificial intelligence and other technologies should be viewed as enablers rather than threats. “AI and emerging technologies must be used ethically, supported by strong teacher training through national centres and new platforms like Guru Setu. Lifelong learning, resilience, innovation and industry-academia collaboration will define future readiness,” he said.
Sahasrabudhe added that transparent rankings, revamped accreditation systems and a strong ethical foundation could help Indian institutions become globally competitive by 2047.
Human Capital at the Heart of Resilience
Dr Naushad Forbes, Past President of CII and chairman of the CII National Higher Education, R&D, Technology and Innovation Council, placed education CSR in a broader economic context, arguing that human capital is the most durable form of resilience.
“When we live in times of great uncertainty, the role that education can play is hugely beneficial,” Forbes said. “The greatest source of resilience in the long run for any society, or any company, is the quality of human capital it possesses.”
Drawing on historical insights, he referred to Nobel Prize-winning research on the Industrial Revolution. “What mattered was not just scientific knowledge, but knowledge in the heads of people, combined with accumulated skills, artisan skills that turned ideas into reality on the ground,” he said. “That rich combination of education and experience is what drives long-term economic transformation.”
Forbes also called for a stronger focus on higher education as a creator of talent and innovation. He argued for a substantial increase in public research funding within universities and urged a move away from prescriptive regulation towards autonomy and competition.
Why This Moment Matters
Chief economic adviser Dr V Anantha Nageswaran described the current phase as a rare inflection point for Indian higher education. “India’s flexibility and consultative approach reflects confidence, maturity and trust in the ecosystem,” he said, pointing to the 2023 decision to allow reputed foreign universities to establish campuses in India, subject to quality safeguards.
According to Nageswaran, four forces are converging to make this moment particularly significant: India’s demographic and economic inflexion point, shifting global student flows as traditional destination countries face demographic challenges, the scale enabled by digital and AI-driven education, and the policy foundation laid by NEP 2020.
“The focus now must shift from policy to execution,” he said, stressing the need for lifelong learning, research, innovation and global engagement.
He also highlighted the crucial role of states, noting that most higher education delivery lies at the state level. “Greater institutional autonomy with accountability, addressing faculty shortages, moving from input-based to outcome-based regulation, an entrepreneurial administrative mindset and deeper industry engagement are essential,” Nageswaran said.
Rural and Aspirational India in Focus
The CII study underscores that CSR education investments are increasingly aligned with inclusion. Nearly 39% of education CSR spending is concentrated in rural and village areas, while 22% is directed towards aspirational and tribal districts. About 60% of corporates support programmes across the entire education lifecycle, from early childhood education to skilling and vocational training, while 35% prioritise primary and secondary schooling.
Regional and thematic diversity in CSR programming today points to an increasing appreciation of the important role that foundational learning and access in neglected areas have on long-term success.
From Infrastructure to Quality Learning
Given that school infrastructure is still important, the new report shows that there is now a much stronger focus on quality and outcome metrics than ever before. Based on the report, 78% of businesses surveyed made investments in education, skills and training initiatives, 48% made investments in digital learning and 43% made investments in teacher training and capacity building programs.
As a result of these changes, businesses have changed their focus from building classrooms to enhancing learning quality, providing digital access and improving employability; for these businesses, this transition mirrors the emphasis placed on holistic development in the National Education Policy 2020.
CSR Budgets Continue to Grow
Corporate confidence in the education sector is very high, as nearly 90% of organisations surveyed reported an increase in their education-related CSR budgets compared with the previous year. In fact, 48% of surveyed organisations reported year-over-year increases of between 10% and 20%. Based on this upward trajectory, it appears that there has been a significant shift in the perspective of businesses investing in education as a long-term strategic investment rather than a discretionary expenditure.
NGOs Implement, Foundations Scale
The implementation models used by CSR programs also display a commonality; over 56% of CSR programs focused on education have been implemented by NGOs and development organisations due to their grass roots presence and expertise in implementation. An additional 26% of education-based CSR programs have been routed through corporate foundations, which have historically implemented longer, multi-year programs that include stronger monitoring and evaluation measures.
Measuring Impact, Sustaining Gains
Impact measurement practices are improving, with around 60% of organisations now using formal monitoring and evaluation systems, including third-party assessments. However, sustainability remains a concern. Post-project continuity was cited as the biggest challenge by 30% of respondents, followed by teacher shortages and implementation difficulties in remote regions.
Corporates reported high confidence in outcomes such as improved learning levels, digital access and inclusivity, with average agreement scores above 4 out of 5. Yet, influence on education policy remains limited, scoring just 3.22, suggesting CSR is still viewed more as a project-level enabler than a policy-shaping force.
As Nageswaran summed up, India has achieved scale in higher education; the next challenge is leadership. If the Centre provides vision, states drive execution, corporates invest strategically and institutions focus on outcomes, education CSR could become a powerful lever not just for social impact, but for positioning India as a global education and talent hub in the decades ahead.
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