Is CSR Spending on Skilling Essential to Unlock India's Global Labor Potential?

New Delhi, July 14 (NationPress) Corporate social responsibility (CSR) investments in skilling must see significant enhancement to fully leverage India’s workforce capabilities on the international platform, as highlighted in a recent report.

The analysis from Crisil, a renowned rating agency, emphasizes that India requires substantial financial commitments towards skill development to capitalize on its demographic dividend. It stresses that both public and private sectors need to share the responsibility of skilling investments.

India stands at a unique juncture, as developed nations in the Gulf Cooperation Council, Europe, and Australia are grappling with severe skill shortages, particularly in vital sectors like healthcare, information technology, renewable energy, logistics, and construction.

With a staggering 65% of its populace under the age of 35, India possesses a plentiful supply of workforce capable of filling gaps in the global labor market.

“CSR funding needs to progress beyond merely isolated skilling initiatives. When effectively synchronized with government efforts, CSR can serve as a powerful driver, substantially enhancing India's readiness for the global labor market. Our findings suggest that to fully harness this potential, CSR should strategically identify and prioritize skill development in a phased approach,” remarked Binaifer Jehani, Business Head, Risk Solutions – Assessments and Social Sector Consulting, Crisil Intelligence.

Government efforts like the Pradhan Mantri Kaushal Vikas Yojana have brought some focus to skilling under CSR, yet there remains significant scope for advancement, the report indicates.

Out of the ₹2.22 lakh crore allocated by corporations for CSR since the fiscal year 2015, a mere 3.5% has been directed towards skilling.

Moreover, current CSR initiatives have been fragmented and predominantly centered around traditional or informal trades, lacking alignment with the global employment landscape. This highlights the urgent need for a more strategic and cohesive approach.

The report strongly recommends CSR investment in comprehensive training infrastructures, especially smart labs and simulator-based setups that mimic real-world scenarios. Additionally, language and cultural labs are crucial to ensure candidates are equipped for international employment and can thrive in diverse work environments.

Furthermore, inter-sector collaborations can foster robust skilling frameworks, such as automotive companies pooling resources to fund world-class electric vehicle technician training, as highlighted in the report.