India Moves to Channel Corporate CSR Funds to Vocational Training Ahead of Budget 2026

The Government of India is considering a proposal for income tax exemptions for companies that deploy Corporate Social Responsibility (CSR) funds into vocational training programmes, potentially announced in Budget 2026. The move aims to deepen engagement between corporates and skill development efforts, bridging gaps in workforce competencies and strengthening India’s position in global services.

If enacted, this policy could significantly increase private sector participation in skilling initiatives, encouraging firms to back sustainable training models that elevate employability and support local economies. Industry leaders have welcomed the proposal, highlighting the potential for improved corporate impact and stronger alignment with national employment priorities.

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