Budget 2026: Tax breaks may boost skill training with CSR funds
A new proposal sent to the Finance Ministry suggests giving companies tax exemptions if they use their CSR money for vocational training.
The goal is to get more private companies involved in helping young people learn job-ready skills.
We'll know if this makes it into the Union Budget on February 1.
Why should you care?
Right now, only a tiny slice—just 3.5%—of all CSR spending since 2015 has gone toward skill-building, even though sectors like healthcare and logistics are desperate for talent abroad.
Linking CSR with tax benefits could mean more funding for real-world training, bigger opportunities for youth, and a stronger connection between industry and education.
If it works, it could potentially unlock approximately ₹5,000 crore annually for structured apprenticeships.