GCC CSR spending rises 6.4-fold to Rs 3,661 crore in FY25: Sattva

Bengaluru: Corporate social responsibility (CSR) spending by global capability centres (GCCs) in India rose 6.4-fold over a decade to Rs 3,661 crore in FY2024-25, accounting for about 9% of the country’s corporate philanthropy, according to a report by Sattva Consulting and India Data Insights.GCC CSR spending grew at a compound annual growth rate (CAGR) of 20.4% between FY15 and FY25, outpacing the 15% growth in overall CSR spending, the report said. Investments by pure GCCs rose 8.6-fold over the period, while those by hybrid GCCs increased 5.5-fold.The report, based on Ministry of Corporate Affairs data, analysed around Rs 24,000 crore in CSR spending across 906 confirmed GCCs between FY2014-15 and FY2024-25.Education remains the largest area of focus, featuring among the top CSR priorities across 11 of 13 industries. It accounted for 34-52% of spending across most sectors during FY23-FY25, reflecting GCCs’ emphasis on skilling, capacity building and digital education to strengthen future talent pipelines.Environmental initiatives are also gaining attention as data centre requirements and operational footprints expand. GCCs directed Rs 228 crore towards water management and afforestation, the report found.However, innovation remains an underfunded area. Just Rs 435 crore, or 4% of GCC CSR spending during FY23-FY25, went towards innovation-linked projects, despite the sector’s engineering, product development and technical capabilities.“The next phase of GCC-led social impact in India will be about moving beyond capital to capability,” said Srikrishna Sridhar Murthy, CEO of Sattva Consulting. GCCs could apply their technology, talent and global experience to development challenges through translational research, preparing talent for the future of work and improving quality of life in cities, he said.GCC CSR spending is also concentrated geographically, with more than 65% deployed in Tier-1 cities, including Bengaluru, Pune, Delhi NCR, Mumbai and Hyderabad. Nashik was the only Tier-2 district among the top 10 recipients, receiving Rs 104 crore during FY23-FY25.The report said this concentration presents an opportunity to extend GCC-led social impact beyond India’s largest urban centres.You use AI every day. Now get your AI Quotient. Take the AIQ test.