One innovative approach to CSR is linking it with skill development. The Indian government has proposed a new initiative to incentivize enterprises to invest in skill training through CSR activities, with the goal of creating a 100% skilled labor force by 2047 as part of its Vision 2047.
Welcome to India CSR. Today we have an important update on the country’s efforts to enhance the skills of its citizens. The Ministry of Skills Development and Entrepreneurship has proposed a unique idea – the ‘Gift a Skill’ concept. This initiative aims to link either the Reserve Bank of India’s digital currency e-Rupi or skill vouchers to the skill development of individuals. With this concept, individuals, corporations, and institutions can sponsor the skill development of another individual.
The government is looking to incentivize enterprises to take up skills training by offering various means of participation, such as co-branding of their training programs and utilizing e-Rupi or skill vouchers for CSR-based training. This will streamline processes for corporate social responsibility practices and encourage greater participation from the private sector.
According to the Companies Act, 2013, companies with a net worth of Rs. 500 crore or more, or a turnover of Rs. 1,000 crore or more, or a net profit of Rs. 5 crore or more during the previous three years are required to spend 2% of their average net profit on CSR activities. The focus of the proposed CSR-backed training will be on green jobs and emerging sectors including electric vehicles, renewables, and solid and liquid waste management.
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CSR Requirements for Companies in India
| Parameter | Requirement |
| Net worth | Rs. 500 crore or more |
| Turnover | Rs. 1,000 crore or more |
| Net profit | Rs. 5 crore or more in the previous three years |
| CSR spend | 2% of average net profit |
| Focus | Green jobs and emerging sectors (EVs, renewables, waste management) |
Note: Companies meeting any of the above criteria are required to spend 2% of their average net profit on CSR activities as per the Companies Act, 2013.
The government is also examining the possibility of creating a ‘Skill Wallet’ to simplify transactions for such CSR activities. The ministry will carry out mapping exercises across key sectors and then integrate the requirements with education, skilling, and re-skilling to help estimate job losses in traditional sectors and demand for skilled professionals across emerging sectors.
Skilled Labor Force in Select Countries
| Country | Skilled Labor Force |
| India | 21.2% |
| Japan | 99.9% |
| South Korea | 86% |
| France | 85.7% |
At present, only 21.2% of India’s labor force is skilled, compared to 99.9% in Japan, 86% in South Korea, and 85.7% in France. As part of its Vision 2047, the Skills Development and Entrepreneurship Ministry aims to provide 100% skills training to India’s projected labor force by 2047.
So far, nearly 55 million candidates have received skills training, which falls short of the government’s Skill India Mission target of training 400 million youth by 2022. Nevertheless, the government is actively examining these proposals and a final decision is expected shortly.
Highlights of the story
| Feature | Description |
| Proposed CSR-Skill training | Linking with e-Rupi or “skill vouchers”. |
| Incentivizing enterprises | Government aims to incentivize enterprises and create ‘Skill Wallet’ for easier transactions. |
| Focus on green jobs | Focus on green jobs and emerging sectors like EVs, renewables, waste management. |
| Vision 2047 target | Target of 100% skilled labor force by 2047 as part of Vision 2047. |
| Current skilled labor force | Currently, only 21.2% of labor force is skilled. |
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