How unfilled promises of CSR funding hinder educational transformation?

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Indian education system wrestles with many issues like outdated curricula, high dropout rates, inadequate facilities, and most importantly - Insufficient financing. A UDISE+ report highlights that only 22% of the school construction cost is covered through local taxes, indicating significant reliance on central and state funds and other fundings like CSR.

In FY 2022-23, total CSR amount spent by almost ~INR 25K Cr companies out of the budgeted allocated amount of nearly ~ INR 30K crores. Out of this, approx. 1/3 was spent on education alone. Numbers seem to be quite impressing. Aren’t they? Unfortunately, still thousands (of schools in India do not have access to basic amenities, let alone the holistic quality education.

An Outlook survey of CSR portfolios of large 301 Indian companies (FY 22-23) revealed that out of total prescribed CSR funds i.e. INR 13K Cr, only INR 12K cr. was actually spent. And the reasons are multifaceted for this difference. Whether it’s the lack of clear strategy, challenges in identifying suitable projects, execution and implementation challenges, or other administrative hurdles, this gap becomes crucial as these are not just numbers.  The difference represents a significant shortfall in resources which otherwise could have transformed the educational landscape for countless young minds.

Despite the Indian government’s efforts to implement CSR regulations and frameworks, there are multiple challenges that hinders realization of the actual benefits. Understanding these challenges, and addressing gaps can help improve the outcomes of CSR initiatives.