From compliance to impact: The evolution of CSR in India’s tech industry

India was the first country to mandate CSR spending under the Companies Act of 2014, requiring companies meeting specific financial criteria to allocate at least 2% of their profits toward social initiatives. Over the past decade, the tech industry has emerged as a key player in shaping CSR’s trajectory, leveraging its expertise to scale programs efficiently and enhance their impact.

Corporate Social Responsibility (CSR) has evolved into a critical component of business strategy, ensuring companies contribute meaningfully to societal development while aligning with national and global goals. The technology industry, with its unique capabilities and resources, has been at the forefront of CSR transformation, leveraging digital tools, data-driven solutions, and large-scale interventions to maximize social impact.

A comprehensive study, "Tech Industry and CSR: Insights and Impactful Stories", published in March 2025, provides an in-depth analysis of CSR initiatives in India’s tech sector. The report examines key trends, investment patterns, and the broader impact of technology-driven CSR programs. Conducted by Nasscom, Nasscom Foundation, and BOD Consulting, the study highlights how tech companies are integrating CSR with their core capabilities to drive education, skilling, sustainability, and social welfare programs at an unprecedented scale.

The growing role of tech-driven CSR in India

India was the first country to mandate CSR spending under the Companies Act of 2014, requiring companies meeting specific financial criteria to allocate at least 2% of their profits toward social initiatives. Over the past decade, the tech industry has emerged as a key player in shaping CSR’s trajectory, leveraging its expertise to scale programs efficiently and enhance their impact.

The study reveals that ₹5,443 crores were spent on CSR by 75 leading tech companies in FY23, with 2,610 projects executed across education, healthcare, climate action, and digital skilling. Notably, more than 80% of tech firms exceeded the mandated 2% spending requirement, underscoring their commitment to long-term social investment. Tech companies are also increasingly aligning CSR initiatives with Sustainable Development Goals (SDGs), focusing on employment generation, education, and gender equality.

Transforming social impact through technology

One of the key differentiators of tech-led CSR is its reliance on AI-driven tools, digital platforms, and real-time analytics to optimize impact. Nearly 90% of CSR projects integrating technology reported higher efficiency and scalability, with companies using digital solutions to track progress, measure impact, and refine interventions in real-time. Some notable trends include:

• AI and Machine Learning in CSR: Companies are deploying AI to analyze social challenges, enhance monitoring, and drive predictive decision-making. AI-powered skilling programs have improved employability by tailoring learning experiences based on individual progress.
• Remote Learning and Digital Skilling: Tech firms are investing in e-learning platforms, mobile applications, and interactive training modules to bridge skill gaps, particularly among marginalized communities. Initiatives such as Infosys Foundation’s Springboard Program and Tata Consultancy Services’ Bridge IT Program have empowered millions with market-relevant skills.
• Big Data for Healthcare and Climate Action: Companies are utilizing big data analytics to support healthcare access, disease tracking, and environmental sustainability initiatives. Digital health interventions, such as Cognizant Foundation’s Project Suraksha, have improved maternal and child healthcare through real-time data collection and personalized outreach programs.

Challenges and the need for equitable distribution

Despite the significant progress made, the study identifies critical challenges in the current CSR landscape, particularly concerning geographic disparities in CSR spending. Approximately 62% of CSR funds are concentrated in South and West India, leaving aspirational districts - accounting for 17.5% of India’s population - largely underfunded. While CSR spending in these regions has increased fivefold since 2019, it still represents only 4.5% of total CSR expenditure.

The high costs of deploying projects in remote areas, lack of local infrastructure, and limited partnerships with grassroots organizations hinder efforts to expand CSR impact to underserved communities. To bridge this gap, the study recommends collaborative models between tech companies, NGOs, and government agencies. Public-private partnerships and aggregation of CSR funds among smaller firms can facilitate scalable, high-impact interventions in regions that need them most.

Future directions: Innovations in CSR strategy 

As CSR continues to evolve, tech companies are focusing on longer-term, sustainable projects that align with both business goals and social needs. The study outlines several emerging priorities:

• Expanding Digital Skilling: With India’s workforce increasingly relying on digital expertise, CSR will play a vital role in bridging skill gaps, especially in AI, cybersecurity, and data analytics. Companies are expected to increase investments in coding boot camps, digital literacy programs, and career-oriented training initiatives.
• Sustainability and Climate Action: CSR in the tech industry is shifting towards climate-conscious initiatives, including carbon footprint reduction, renewable energy adoption, and smart agriculture solutions. Tech-enabled climate solutions will be pivotal in mitigating the environmental impact of rapid industrialization.
• AI and Ethical Technology for Social Good: Companies are increasingly investing in ethical AI development, ensuring that CSR-backed technology projects align with fairness, transparency, and inclusivity. Responsible AI initiatives will enhance trust and governance in corporate social responsibility.

The study emphasizes that the future of CSR will depend on enhanced stakeholder engagement, data-driven decision-making, and stronger regulatory frameworks to maximize societal impact. By leveraging technology, partnerships, and strategic investments, the tech industry is poised to redefine the landscape of CSR, making it more impactful, scalable, and inclusive.