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Hans India
4 days ago
- Business
- Hans India
Small rural enterprises in India can unlock 79 lakh jobs annually: Report
New Delhi: Mini and nano rural enterprises that include small businesses in sectors such as textiles, construction, services, and retail, can generate nearly 79 lakh jobs annually, a report said on Saturday. "India's rural youth cohort is both vast and expanding, making it central to the country's future workforce and economic progress and youth literacy has seen strong gains, reaching 97 per cent nationally among those aged 15 - 24," said a joint report of Transform Rural India (TRI) and the Development Intelligence Unit (DIU). Although 88 per cent of rural women aged 20-24 complete primary education, enrolment in higher education drops significantly, with gross enrolment ratios at 53.8 per cent for higher secondary and about 27.1 per cent for ages between 18 and 23. Despite the potential, the mini and nano rural enterprises (MNREs) remain underrepresented and, as per the report, this situation must change. 'The report brings micro-level issues into focus. When we read them, we also understand what practices can be scaled or repeated. These insights are vital because they highlight gaps and provide data that was missing,' said Nitesh Kumar Mishra, Joint Secretary, Ministry of Youth Affairs and Sports, Government of India. The report suggested that location-specific measures should be there to reduce regulatory burdens, improve access to schemes, expand financial inclusion, and support market connectivity and skill development, especially in underserved rural regions. 'If we aim for enterprise development at scale, we must build a strong digital ecosystem. Finance, infrastructure, tools, and value chain integration need to work together to ensure meaningful participation in enterprise and skilling,' says T.K. Anil Kumar, Additional Secretary, Ministry of Rural Development. According to the report, states with more rural Hired Worker Enterprises (HWEs) tend to have diversified employment structures and stronger non-farm economies, resulting in higher per capita income. 'This survey highlights India's quiet entrepreneurial revolution and the need for targeted action. MNREs can unlock inclusive growth and meaningful employment, especially for rural youth and women. Recognising and supporting them is not only sound policy, but essential for achieving the vision of a developed India by 2047,' said Neeraj Ahuja, Associate Director, Transform Rural India.
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Business Standard
7 days ago
- Business
- Business Standard
Only 30% Indian districts get CSR funding for development needs: Study
Only around 30 per cent of eligible rural districts in India receive Corporate Social Responsibility (CSR) funds aligned with their development needs, while 23 per cent of districts show a complete mismatch between the funds received and their requirement, and 47 per cent show partial misalignment, a recent survey by the Development Intelligence Unit (DIU) has found. The DIU is a collaborative enterprise of Sambodhi Research and the Transform Rural India Foundation (TRIF). The survey uses a refined methodology to estimate CSR spending in rural areas, focusing only on districts with over 50 per cent rural population (as per Census 2011) and sectors with a clear rural development focus. The analysis computes average per capita CSR spending and compares it against the RQOL Index to evaluate the appropriateness of fund allocation. RQOL, or Rural Quality of Life Index, is a weighted composite measure developed indigenously by DIU, using administrative (public intent) data. It encompasses 69 indicators across nine key thematic pillars—agriculture, economic ability and employment, education, gender, governance, health and nutrition, infrastructure and amenities, social security, and sustainability and climate resilience. The index classifies districts within each state into tertiles—high, medium, and low—to enable within-state comparisons and planning. The report highlights a stark divergence between need and actual CSR funding, indicating that CSR strategies are often driven by corporate convenience or compliance motives, rather than a strategic or evidence-based approach. CSR spending continues to be concentrated in three broad sectors—education, healthcare, and rural poverty alleviation—which account for over 60 per cent of all CSR funds. Critical sectors such as environmental sustainability and livelihood enhancement receive inadequate attention. 'Moreover, many CSR initiatives suffer from the lack of impact assessments, duplication of government schemes, weak community participation, and poor innovation or strategic planning. Often, projects are implemented in a top-down manner, driven more by corporate discretion than by actual deprivation or community needs,' the report stated. India's CSR framework, mandated under Section 135 of the Companies Act, 2013, requires companies to allocate a portion of their profits towards social development. Section 135 applies to companies with a net worth of Rs 500 crore or more, or a turnover of Rs 1,000 crore or more, or a net profit of Rs 5 crore or more during the immediately preceding financial year. The Act also mandates that eligible companies must spend at least 2 per cent of their average net profit of the preceding three financial years on CSR activities. In FY23, CSR expenditure in India reached Rs 29,989.92 crore, registering a 12.8 per cent growth over the previous year—a sign of recovery after pandemic-induced disruptions. 'However, this growth masks a deep structural imbalance in the geographical distribution of CSR funds. CSR allocations tend to follow the geographical footprint of donor companies, i.e., where their headquarters or manufacturing or mining units are located. Consequently, industrialised states like Maharashtra, Karnataka, Gujarat, Tamil Nadu, Andhra Pradesh, Telangana, and Delhi have historically captured a disproportionately large share of CSR funds,' the report stated. The report strongly advocates a shift from compliance-led CSR to a development-oriented and impact-driven approach. 'It recommends that the Ministry of Corporate Affairs introduce policy directives to encourage better geographic and sectoral targeting of CSR funds,' it added.
