Integrating AI, data analytics, and digital solutions can expand access to education, boost workforce upskilling, advance healthcare, and accelerate climate action—setting new benchmarks for tech-driven social good.

Nasscom Foundation, along with Nasscom and BOD Consulting, released a CSR report titled “Tech Industry and CSR: Insights and Impactful Stories,” highlighting the sector’s evolving role in impactful CSR. The report states that India’s tech industry contributed Rs 5,443 crore in Corporate Social Responsibility (CSR) spending in FY23, with companies going beyond the 2% mandate by leveraging technological expertise, scalability, and structured CSR strategies to drive long-term impact.

On the sidelines of the launch, Jyoti Sharma, CEO, Nasscom Foundation, and Achyuta Ghosh, Senior Director and Head of Nasscom Insights, discussed with ET Online how technology is reshaping CSR, emerging trends, challenges, policy implications, and the growing focus on AI, digital skilling, and sustainability. Edited excerpts:

Economic Times (ET): How are tech companies redefining CSR with AI, digital skilling, and sustainability initiatives?
Jyoti Sharma (JS): I believe that technology is one of the most powerful enablers of inclusive growth. We see it not just as a tool but as a vital ally in addressing socio-economic challenges faced by marginalized communities. The pandemic accelerated digital transformation, expanding the scope of CSR and opening new avenues for tech-driven social impact.

Today, tech companies are embedding AI, digital skilling, and sustainability into their CSR strategies. Initiatives include setting up digital infrastructures, integrating AI tools for real-time monitoring, skill-based volunteering and employing AI-based skill assessments. These efforts aim to build smart, scalable systems that support skill development, entrepreneurship, and employability, particularly among rural youth and women. By prioritizing access to technology and innovation, tech companies are bridging gaps in aspirational districts, improving access to essential services like healthcare, education, and agriculture. Failing to leverage technology effectively could hinder scalability and systemic change, as it has become an indispensable catalyst for sustainable, inclusive progress and a cornerstone of India's digital future.

ET: CSR impact is often amplified through collaboration. How are you working with tech companies, government bodies, and local NGOs to drive holistic development?
JS: I believe that effective CSR hinges on collaboration among tech companies, government bodies, and local NGOs. At Nasscom Foundation, our core philosophy of TechForGood drives us to harness technology for inclusive growth and sustainable development. This shift from isolated efforts to co-created, scalable models enhances outcomes and aligns with goals of inclusive growth and digital empowerment.

In FY23, 75 leading tech companies spearheaded over 2,610 CSR projects, investing Rs 5,443 crore—surpassing the mandated 2% of profits. These initiatives focused on education, climate action, and digital skilling, leveraging AI and digital platforms to reach millions and create sustainable pathways. Collaboration with the government aligns CSR with national objectives like digital inclusion and skilling, helping bridge regional disparities. Government-backed platforms like the Aspirational Districts Programme have seen a fivefold increase in CSR investment between FY19 and FY23. However, these districts, housing over 15% of India's population, still receive only about 2.15% of total CSR funds.

Local NGOs contribute essential community insights and last-mile connectivity, enhanced by capacity-building initiatives and skill-based volunteering from the tech sector. Such multi-stakeholder collaboration amplifies the impact. Strengthening public-private partnerships, fostering regional collaborations, and creating platforms for knowledge sharing can further align CSR efforts with national development goals. Promoting technology-driven collaboration and structured engagement among companies, NGOs, and government bodies will help scale impact, address region-specific challenges, and ensure efficient, inclusive use of CSR resources.

ET: How have you seen the CSR ecosystem evolve over the past decade, especially from a tech industry lens?
Achyuta Ghosh (AG): While India’s CSR landscape has evolved, key challenges persist—particularly in equitable geographic distribution, prioritising aspirational districts, and fostering stronger NGO partnerships. Our 2024 CSR survey revealed that 21% of companies struggle with limited collaboration, 20% face hurdles in expanding into new sectors, and 15% find it difficult to identify suitable implementation partners. Addressing these gaps is essential to unlocking CSR’s full potential and aligning it more closely with national development goals.

CSR in India has transformed over the past decade, empowering millions, with the tech industry leading the way. The number of participating companies increased by 22% from 19,888 in FY22 to 24,392 in FY23, while total CSR expenditure grew by 12.6% from Rs 26,400 crores to Rs 29,700 crores. This growth, fueled by stronger policies, reflects a deeper commitment to nation-building and the SDGs. Key trends include education, skill development, livelihoods, and climate change as top focus areas, impacting over 6.5 crore lives in FY23. Notably, CSR spending in aspirational districts has increased fivefold since FY19, though it still accounts for only 4.5% of total CSR expenditure. Encouragingly, 41% of organizations now prioritize alignment with national priorities and the SDGs. Looking ahead, social innovation is projected to increase from 6% to 8% focus in the next 3–5 years.

ET: What do you see as the emerging priorities for the future of CSR in India, and what gaps need to be addressed to make CSR efforts more impactful and inclusive?
JS: I find it encouraging that CSR investments are becoming more strategic and aligned with national and global development goals. Still, organizations must better assess community needs and identify high-impact areas. In the coming years, skill development and livelihood generation are expected to surpass education as CSR priorities. Tech companies are entering areas like disaster response and WASH, while non-tech firms focus more on climate action. Social innovation is gaining ground, with focus expected to grow from 6% to 8%. Despite progress, companies face barriers in collaboration, sector expansion, and finding the right partners. On-the-ground challenges like tech resistance, fragmented gender efforts, and caste-based discrimination persist. A long-term, partnership-driven, tech-enabled approach is essential for deeper, inclusive impact.

ET: Based on the report, what recommendations would you give to CSR leaders?
AG:

The report outlines key recommendations for CSR leaders aiming to replicate successful initiatives. It emphasizes establishing clear key performance indicators (KPIs) and leveraging AI tools for real-time monitoring to enable timely course corrections. Developing adaptive learning solutions tailored to diverse demographics, incorporating gamification and practical simulations, is highlighted to sustain engagement.

Collaborating with academic and industry stakeholders to create impactful training programs ensures certifications align with industry standards, attracting participation. Partnering with local NGOs addresses regional talent issues effectively. Providing regional language content and mobile or offline learning resources bridges accessibility gaps.

Combining technical and soft skills training, and utilizing case studies, offers clear career pathways for learners. Engaging with local organizations fosters effective outreach, builds trust, and allows for the customization of program goals to address community-specific challenges. Involving local outreach workers and leaders in a community-driven model ensures sustained behavioral change and program adoption. Partnering with organizations that possess local expertise helps bridge gaps in reach, logistics, and program execution.

ET: How has the rise of professionalized CSR teams and strategic alignment within the tech industry contributed to more efficient, impactful initiatives—particularly in areas like tech-led skilling and sustainable rural development?
JS: I have observed a significant shift in how we approach social responsibility. CSR is no longer a peripheral activity; it is now a strategic imperative that aligns closely with our business objectives and national development goals. This evolution has enabled us to leverage our technological expertise to address pressing social and environmental challenges effectively.

According to the Nasscom and Nasscom Foundation Annual CSR Survey 2024, 90% of tech-integrated projects reported increased impact, scalability, and efficiency. Furthermore, 41% of organizations are now prioritizing CSR goals that align with the United Nations Sustainable Development Goals, reflecting our collective commitment to global societal advancement. It's clear that by embedding technology into our CSR strategies, we are not only driving meaningful change, but also setting a precedent for sustainable and inclusive growth.