India’s GCCs increase CSR spending 6.4-fold to ₹3,661 crore, innovation gets just 4%: report

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India’s GCCs increase CSR spending 6.4-fold to ₹3,661 crore, innovation gets just 4%: report
India’s GCCs increase CSR spending 6.4-fold to ₹3,661 crore, innovation gets just 4%: report

India’s Global Capability Centres contributed around 9% of the country’s corporate philanthropy in FY2024–25, with education and skilling emerging as key priorities, according to a study by Sattva Consulting and India Data Insights.

India’s Global Capability Centres (GCCs) increased their corporate social responsibility (CSR) spending 6.4-fold over the past decade, reaching ₹3,661 crore in FY2024–25, according to a study by Sattva Consulting and India Data Insights. The findings point to the growing contribution of GCCs to India’s corporate philanthropy, while also highlighting scope to channel more funding into innovation-led social interventions.

Titled The Growing Impact of Global Capability Centres in Indian CSR, the study analysed CSR expenditure across 906 confirmed GCCs between FY2014–15 and FY2024–25. Together, these centres spent approximately ₹24,388 crore on CSR initiatives over the period. Their expenditure grew at a compound annual growth rate (CAGR) of 20.4%, compared with 15% for overall CSR spending in India.

GCCs accounted for around 9% of India’s corporate philanthropy in FY2024–25, making them an increasingly significant contributor to social development initiatives.

Education and skilling remain key priorities

Education featured among the leading CSR priorities in 11 of the 13 industries covered by the study. Between FY2022–23 and FY2024–25, it represented approximately 34–52% of CSR spending across most sectors.

Capacity-building and skilling received ₹511 crore during the three-year period, making it the largest individual intervention category identified in the report. The allocation underlines the continued importance of education and workforce development as employers respond to evolving skill requirements.

Environmental programmes also formed part of GCCs’ CSR portfolios. Water management and afforestation together received ₹228 crore between FY2022–23 and FY2024–25, reflecting investment in resource conservation and environmental sustainability.

Innovation receives a relatively small share

Despite their technology-led operations and specialised expertise, GCCs directed a comparatively small proportion of their CSR expenditure towards innovation-linked projects. The study found that these initiatives received ₹435 crore, accounting for approximately 4% of GCC CSR spending between FY2022–23 and FY2024–25.

The findings suggest an opportunity for GCCs to apply their technical capabilities to social challenges beyond their commercial operations. Expertise in artificial intelligence, data analytics, engineering and product development could support projects focused on digital inclusion, accessible services and community development.

Turning that potential into measurable outcomes, however, would require sustained collaboration with implementation partners and interventions designed around the needs of beneficiary communities.

CSR expenditure remains concentrated in major cities

More than 65% of GCC CSR expenditure was concentrated in Tier-1 cities, according to the study. The report also identified differences between operating models: pure GCCs directed 77% of their CSR spending towards Tier-1 locations, compared with 59% among hybrid GCCs.

The figures point to a concentration of CSR investment in major urban centres, even as India’s GCC ecosystem expands into additional locations. They also raise questions about how companies can align their CSR strategies with local development priorities in emerging business hubs.

Pure GCCs record faster growth in CSR spending

CSR expenditure by pure GCCs increased 8.6-fold over the decade, compared with 5.5-fold growth among hybrid GCCs. Despite this faster growth, hybrid GCCs accounted for 61% of cumulative CSR expenditure analysed in the study, while pure GCCs contributed the remaining 39%.

The difference indicates that CSR investment patterns vary across the GCC ecosystem, shaped in part by operating models and corporate priorities.

As GCCs continue to expand in India, rising CSR expenditure creates an opportunity to deepen their contribution to social development. The next phase could involve not only larger financial commitments but also a stronger application of technical expertise, innovation and locally relevant interventions to address persistent social challenges.

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