Corporate Social Responsibility (CSR) spending in India is poised for significant growth, projected to surpass ₹1.2 lakh crore annually by 2035. This substantial increase, driven by a 13.48% Compound Annual Growth Rate (CAGR) observed in the earnings of the top 100 listed companies, is set to establish CSR as the largest pool of philanthropic capital within the country. These insights are detailed in a recent report titled ‘India Inc. for Building Bharat: How Systemic CSR is Building Enduring Impact for Tomorrow’, launched by The Convergence Foundation (TCF) and its network organization SCALE, co-authored with India Impact Sherpas.

Ashish Dhawan, Founder-CEO of TCF, a renowned philanthropist and former private equity investor, highlights in an interview with LiveMint the critical transition of CSR in India from a mere compliance exercise to a force for systemic impact. He notes that current CSR spending, approximately ₹30,000 crore in FY24 and expected to reach ₹33,000-34,000 crore this year, is projected to reach ₹1.25 lakh crore within a decade. Initially, companies faced 'teething problems' with the mandated CSR rules, but the landscape has matured. Dhawan emphasizes that CSR, despite being a fraction (1.3%) of government spending on the social sector, must adopt a 'catalytic' role, complementing rather than substituting government efforts.

The Convergence Foundation (TCF) and its initiative, SCALE, are instrumental in fostering this evolution. Recognizing that knowledge products alone are insufficient, SCALE was launched to actively collaborate with CSR initiatives over the next 10-20 years, guiding them towards more systemic approaches. This involves offering 'consulting-like' support to make CSR efforts more strategic, building a community of CSR leaders, and elevating their professional profile. Dhawan observes that while many companies initially assigned PR heads to CSR, a growing percentage (10-15%) now invest in dedicated, highly capable CSR leaders and teams, a trend TCF aims to expand, positioning the CSR leader as a crucial executive akin to a CFO or CTO.

To scale a company's philanthropic ambitions, Dhawan outlines several key strategies: firstly, securing greater CEO and board-level commitment to a few significant, 'big' initiatives rather than spreading resources too thinly. Secondly, investing in top talent by hiring excellent CSR leaders and building strong teams. Thirdly, shifting a minimum of 20% of the CSR portfolio towards initiatives designed for 'systemic impact' beyond direct activities. Lastly, implementing better measurement practices focused on quantifiable 'outcomes' rather than just 'outputs' or 'activities', leveraging companies' existing expertise in performance evaluation.

Beyond corporate philanthropy, India is witnessing a