India Inc’s CSR Contributions Cross Rs 30,000 Crore Mark
In a milestone year for corporate philanthropy, India Inc's Corporate Social Responsibility (CSR) spending soared to ₹29,986.92 crore in FY 2023–24, according to data from Red Lab. This marks a record-breaking 16% increase from the previous year, driven by rising corporate profits and tighter regulatory enforcement.
With over 1,871 listed companies executing more than 51,900 CSR projects, the private sector’s role in India’s socio-economic development continues to deepen. However, while the numbers are impressive, questions remain about how and where this money is being spent.
CSR: Powering Development, Narrowing Gaps
Introduced under the Companies Act, 2013, CSR law mandates eligible firms to invest 2% of their average three-year net profits in socially beneficial projects. In FY24, companies eligible under this clause posted a combined average profit of ₹9.62 lakh crore—forming the base for this massive CSR outlay.
CSR funding in India supports a wide range of programs—from education and healthcare to rural development, sustainability, and employment generation. It has become a crucial complement to public policy, helping bridge service delivery gaps, especially in areas where government capacity remains limited.
Sector-Wise Allocation: Education Dominates, Environment Lags
A closer look at CSR allocation reveals a strong preference for education, which drew ₹10,085 crore or 33% of total funding. Healthcare followed with ₹7,000 crore (23%), and rural development received ₹5,000 crore (17%). These three sectors accounted for nearly three-fourths of total CSR spending.
However, sectors like livelihood generation (6%) and environmental sustainability (7%) remain underfunded, despite their relevance in today’s climate and employment challenges. Experts warn that this lopsided spending pattern may undercut long-term resilience, especially in vulnerable communities already grappling with economic and ecological volatility.
Top CSR Contributors: Big Business, Bigger Impact
A handful of corporate giants continue to lead the CSR charge. HDFC Bank topped the list with ₹954.3 crore in CSR spending, followed by Reliance Industries (₹900 crore), Tata Consultancy Services (₹827 crore), and ONGC (₹634.5 crore). Other notable names include Tata Steel, ICICI Bank, Infosys, ITC, and Indian Oil.
These top 10 contributors together form a significant portion of the total CSR pool, reinforcing how large companies set the tone and scale of corporate giving in India. Encouragingly, there’s also a shift towards longer-term, impact-oriented initiatives rather than short-term, scattered efforts.
Regional Disparities: A Persistent Challenge
While the aggregate CSR figure is commendable, the regional distribution remains skewed. Over 61% of CSR funding came from companies based in Maharashtra and Delhi, with a disproportionate amount staying within these or other urbanized states.
Only 3% of total CSR spend reached aspirational districts—areas identified by the government for targeted development due to lagging socio-economic indicators. This raises concerns about inequitable access to resources, potentially widening existing developmental divides.
A Call for Smarter, More Inclusive CSR
India Inc’s rising CSR commitment signals a welcome alignment of profits with purpose. However, for CSR to be truly transformative, intent must be matched with inclusive execution. Corporate leaders need to look beyond metros and known sectors, and instead build strategic partnerships with grassroots NGOs and local bodies in underdeveloped regions.
Going forward, a data-driven, decentralized approach—one that maps needs to investments and focuses on sustainability, livelihoods, and climate resilience—can make CSR a true engine of inclusive and balanced national development.
It’s not just about giving more, but giving smarter and fairer.
(With agency inputs)
