While India’s philanthropy market is valued at nearly ₹70,000 crores with a 10% CAGR, only 0.3% of CSR funding is directed towards research and innovation. India houses over 963 incubators and accelerators, with nearly one-third based in Maharashtra, Karnataka, and Tamil Nadu. However, India’s total investment in innovation is less than 1% of its GDP.
Home to the 3rd-largest startup ecosystem in the world, over 100 unicorns, India’s innovation landscape is primed to take off— with a push from CSR funding. In 2021, $40 billion went toward climate and tech startups globally, marking a shift in priority for investors. There is significant demand for sustainability-driven businesses, with 88% of Indian consumers preferring green products. Even the technology required for green practices has become more cost-effective—with an 85% reduction in costs for solar power since 2010.
Sattva Consulting held a closed-door roundtable in collaboration with India’s Translational Research Initiative (ITRI), C-CAMP, Social Alpha, IIT Madras, IIT Bombay, and other key partners, on 20th February 2025, that brought together corporates and esteemed research institutions to discuss opportunities for CSR to nurture India’s recent strides in innovation.
Our speakers— Mirik Gogri, Climate-Tech Investor, Spectrum Impact; Dr Mohanasankar Sivaprakasam; Professor, Department of Electrical Engineering, IIT-M; Anjali Bansal, Founding Partner, Avaana Capital Climate and Sustainability Fund; and Ravishankar Gedela, CEO, IIT-B Development and Relations Foundation— spotlighted case studies of CSR funding groundbreaking research, such as IIT-M’s 3D-mapping of the human brain, and the massive opportunity for organisations to play a hand in such achievements.
Opportunities for Companies
1. Prioritising CSR Approaches to Encourage Innovation
Organisations have been increasingly shifting their CSR strategy from being compliance-driven to focusing on long-term social impact. However, there is a growing opportunity for innovation to be the driving force behind corporate philanthropy. By channeling CSR funds into early-stage deep-tech research and commercialisation, companies can significantly contribute to India’s innovation ecosystem. Investing in research-driven initiatives ensures that solutions addressing major challenges—such as climate resilience, healthcare, and sustainable infrastructure—progress beyond laboratory research and into real-world applications.
2. Establishing Stronger Partnerships with Research Institutions
One of the biggest barriers to innovation is the gap between research and commercialisation. Companies can bridge this gap by funding research at Technology Readiness Levels (TRL) 4-7, where promising solutions need critical support to reach the market. Strategic, multi-year collaborations with premier research institutions and grassroots universities can help ensure that CSR funding translates into scalable and market-ready solutions.
Read Five Creative Ways to Utilise Your Unspent CSR Budget for more.
3. Leveraging Government Incentives to Support CSR-Backed Innovation
Government policies and incentives are increasingly aligned with sustainability and innovation, creating a strategic advantage for companies to integrate CSR with national priorities. Companies can leverage schemes like FAME-II (for electric vehicles) and the Production Linked Incentive (PLI) for solar energy and renewables to enhance their CSR impact.
4. Creating a Standardised Framework to Measure Innovation-led Impact
Structured impact metrics are required to ensure the effectiveness of CSR-funded research. Companies can drive innovation by developing sector-specific impact metrics in collaboration with research institutions and evaluators. A standardised framework will allow organisations to track the success of CSR-funded research, its commercialisation, and long-term impact. This will enhance accountability and bolster confidence in early-stage innovation.
5. Scaling Climate-Tech and Sustainable Innovation
With climate change emerging as an urgent global priority, CSR funding can be instrumental in scaling climate solutions. Companies have the potential to look beyond compliance and invest in climate adaptation, mitigation, and resilience strategies. Supporting gig workers, MSMEs, and small farmers in transitioning to sustainable business models are some ways to support inclusive innovation in this sector.
6. Building Long-Term Innovation Ecosystems
Rather than focusing on isolated, one-time grants, CSR efforts should contribute to larger innovation ecosystems. Encouraging incubator-to-incubator collaboration can help scale deep-tech innovations in Tier 2 and Tier 3 cities, ensuring that cutting-edge research benefits underserved regions. By enabling a collaborative ecosystem where startups, research institutions, and companies work together, businesses can play a vital role in positioning India as a global innovation hub.
Corporate social responsibility can and needs to be more than a compliance obligation. It has the potential to drive groundbreaking innovation, foster long-term partnerships, and create scalable, sustainable impact. By strategically aligning CSR funding with research, government initiatives, and ecosystem-building efforts, companies can shape a future powered by deep-tech innovation and inclusive growth.
Sattva has been working with various corporates, non-profits and social organisations to help them define their social impact goals. Our focus is to solve critical problems and find scalable solutions. We assist organisations in formulating their long-term social impact strategy by strategically aligning with business to provide meaningful solutions to social issues.
Write to us: impact@sattva.co.in
