India Inc. must raise CSR spends on sports to supplement Government effort

Listen carefully and you will hear whispers that India Inc. has stepped up big time to support sports through not only sponsorship but also Corporate Social Responsibility (CSR) funding. Scratch the surface, listen to the untold story and you will discover that CSR funding for sports development is rather negligible.

The National CSR portal shows that spends on encouraging sports over a five-year period from 2018-19 to 2022-23 was Rs. 1,666.44 crore, a mere 1.30 per cent of the total CSR spends of Rs 1,27,961.13 crore. If Rs 595.12 crore spends on sport ‘pan India’ count are deducted, the percentage dips to 0.83 of the total CSR spending in India between 2018-18 and 2022-23.

If you look at the nine-year period from 2014-15 to 2022-23, the figures are more revealing. But first, it must be said that these do not include amounts spent Pan India but take into account only those spent on specific States and Union Territories. The total CSR spends on Sports are Rs 1,452.36 crore, just 1.1 per cent of the total Rs. 1,30,367.71 crore spent on CSR.

Maharashtra (Rs. 315.51 crore), Karnataka (Rs. 165.56 crore), Odisha (Rs. 160.64 crore), Tamil Nadu (Rs 132.05 crore) and Delhi (Rs. 120.93 crore) are the top States in which CSR funds have been spent on sports development in the nine-year period for which data is available.  As many as 16 States and Union Territories have got less than Rs. 10 crore in the same time frame.

One of the possible reasons for rather low investments of CSR funds in sports development is the perception that Sport was not a priority sector. And corporates are not in the business of doing charity. Now, that is changing, thanks to the improved returns on the global front and a growing awareness of sports’ role in nation-building and overall health of society at large.

It is also fair that those who earmark a portion of their CSR funds for sport get socially acknowledged for their contribution. By definition, the corporates and PSUs would be fulfilling their social responsibility and cannot expect such contribution to bring in returns like marketing spends can and do. Yet, the sports community must find ways to celebrate such investments.

Of course, over the years, the Central Government has enhanced the budget allocation of the Ministry of Youth Affairs and Sports from Rs. 1219.00 crore in 2013-14 to Rs. 3442.32 crore in 2024-25. But that is never going to be enough to expand the base of the talent pyramid or to support all high performance athletes with all the inputs and incentives they aspire for. 

However, if Indian sport depends largely on Central Government funding to fuel its growth, it may remain in the take-off stage for some more time. One way of raising resources is to encourage corporates, both in the private and public sectors, to invest some more of their Corporate Social Responsibility funds in sport.

With not too many State Governments earmarking substantial amounts in their own budgets for the development of sports, corporates can focus on two areas to contribute to the growth of the Indian sports story – overall grassroots development and infrastructure creation. This can be the slingshot that India needs to move from single-digit medal hauls in Olympic Games.

These funds can be utilised to hasten the development of sports infrastructure at the grass roots level as well as the upkeep of playground and multipurpose halls, provision of necessary sports equipment and above all, paying good compensation packages for coaching and managerial staff.

Since the launch of Khelo India as the overarching scheme of the Ministry of Youth Affairs and Sports, Rs 3066.90 crore have been earmarked for 322 sports infrastructure projects around the country. These include 118 multipurpose halls, 54 athletics tracks, 26 hockey turfs, 25 football fields, 16 swimming pools and 83 other projects ranging from hostels to school playgrounds. 

As per data on the Khelo India website, three major projects were allotted Rs 1057.38 crore, leaving Rs 2009.52 crore for 319 projects. These could easily be doubled with generous investments from CSR funds, with greater focus on developing playgrounds and multipurpose halls to be able to draw more youngsters to play sport.

Then again, those who have spent time understanding the Indian ecosystem agree that the absence of coaches who can impart the right techniques to youngsters has hampered India’s progress in the world of sports. CSR funding can be used to pay professional fee to such coaches who work at the grassroots level and are willing to be important links in the chain.

If a central mechanism, including representatives of industry, sport and Government, can channel and monitor the use of CSR funds in sport, India’s aspirations to be among the world leaders can transform to reality. The infusion of funds at the grassroots level to enhance infrastructure, equipment, and coaching could well be the key to evolving as a sports nation.