In the financial year 2023-24, Indian companies made a record expenditure of nearly Rs 30,000 crore on Corporate Social Responsibility (CSR) activities, according to data compiled by Red Lab. This figure, standing at Rs 29,986.92 crore, reflects the collective efforts of over 1,871 listed companies, who implemented more than 51,900 CSR projects across the country.
The surge in CSR spending, up 16 per cent from the previous year, was fuelled by a sharp rise in corporate profits and stricter regulatory compliance under the Companies Act, 2013. This law mandates that companies with a net worth of at least Rs 500 crore, turnover of Rs 1,000 crore, or net profit of Rs 5 crore must spend at least 2 per cent of their average net profits from the last three years on CSR initiatives. In FY24, the average three-year net profit of eligible companies rose to Rs 9.62 lakh crore, providing a larger base for mandatory CSR allocation.
Regional Imbalances
Despite the impressive overall figure, the Red Lab report highlights deep regional and thematic imbalances in the allocation of CSR funds. A significant 61 per cent of the total CSR expenditure originated from companies headquartered in Maharashtra and New Delhi, reinforcing the dominance of metropolitan corporate hubs in driving philanthropic investments. However, only 3 per cent of total funds reached aspirational districts—areas identified by the government for targeted development—indicating that regional disparities remain a major concern.
Sector-wise, education received the lion’s share of CSR funding, with Rs 10,085 crore (33 per cent) allocated to various projects in this domain. Healthcare followed with Rs 7,000 crore (23 per cent), and rural development attracted Rs 5,000 crore (17 per cent). In contrast, critical sectors such as livelihood generation and environment & sustainability received only 6 per cent and 7 per cent of the total funds, respectively. Experts have cautioned that this underinvestment could hamper efforts towards climate resilience and sustainable employment generation, especially in vulnerable communities.
Top CSR Spenders
Among the top CSR spenders, HDFC Bank led with Rs 954.3 crore, followed by Reliance Industries (Rs 900 crore), Tata Consultancy Services (Rs 827 crore), and ONGC (Rs 634.5 crore). Other major contributors included Tata Steel, ICICI Bank, Indian Oil Corporation, ITC, Infosys, and Power Grid Corporation of India. These ten companies alone accounted for a substantial portion of the total CSR expenditure, reflecting the pivotal role of large corporates in India’s social development landscape.
The report also notes a trend towards long-term and focused CSR projects, with many companies preferring to invest in fewer, high-impact initiatives rather than spreading resources thinly across multiple areas. Education has emerged as the most prioritised sector, not just for its broad societal impact but also for its high perceived return on investment in human capital. There is also a growing emphasis on collaboration with implementing agencies and government bodies to ensure effective execution and monitoring of CSR projects.
However, the concentration of CSR funds in developed states and metro regions, coupled with the limited reach to underdeveloped and aspirational districts, suggests that India Inc still has a long way to go in achieving balanced and inclusive growth through CSR. Experts believe that a strategic shift towards supporting non-profits and building capacity in underfunded regions could help bridge these gaps and make CSR efforts more equitable across the country.
