Corporate social responsibility (CSR) spending by listed companies in India has crossed ₹1.22 lakh crore over the past decade, but a significant share of this funding has bypassed the country’s most underdeveloped regions, according to the latest analysis by CRISIL.
The findings, published in the 10th edition of CRISIL Foundation’s CSR Yearbook titled Decade Decode, show that while CSR has evolved into a more structured and strategic function, geographical disparities and implementation challenges continue to limit its full developmental impact.
Since CSR became mandatory under Section 135 of the Companies Act, 2013, qualifying listed companies have cumulatively spent over ₹1.22 lakh crore between fiscals 2014 and 2024.
A substantial 63% of this expenditure, or around ₹77,000 crore, was deployed in the past five fiscals (2020–2024), signalling a sharp rise in corporate commitment, improved planning and stronger governance frameworks.
In fiscal 2024 alone, CSR spending rose about 30% year-on-year (y-o-y) to ₹19,208 crore, driven by higher corporate profits and greater compliance.
Education and skill development accounted for the largest share of CSR spending at 18%, followed by healthcare and sanitation at 14%, together making up nearly one-third of total outlays, the report says.
Despite the surge in overall spending, the report flags a persistent imbalance in the geographical distribution of CSR funds.
Of the 2,020 companies eligible for CSR in fiscal 2024, only 397 or about 20%, implemented projects in aspirational districts, which are identified by the government as lagging on key socio-economic indicators.
These districts received just ₹2,390 crore, or 12% of the total CSR spend of ₹19,208 crore, highlighting a significant gap between national development priorities and corporate capital allocation.
The report notes that CSR spending remains concentrated in industrialised states such as Maharashtra and Delhi, where companies are headquartered, further widening regional disparities.
CRISIL says CSR in India has undergone a structural transformation over the past decade, from ad hoc philanthropic contributions to outcome-driven, strategically aligned programmes.
Companies are increasingly embedding CSR within their governance frameworks, with board-level oversight, formal CSR committees, and enhanced focus on impact assessment and outcome measurement.
According to Amish Mehta, managing director and CEO (MD&CEO) of CRISIL, the evolution reflects stronger accountability and institutional maturity.
“Over the past decade, CSR in India has matured significantly. We are seeing companies build stronger internal capabilities and assume greater ownership of programme implementation. This reflects improved governance, accountability and impact measurement,” he says.
Aligning CSR capital more closely with regions facing the greatest developmental deficits would help amplify long-term socio-economic outcomes, he added.
A notable trend highlighted in the report is the declining dependence on external implementing agencies, including non-governmental organisations (NGOs).
The number of companies using such agencies dropped sharply to 566 in fiscal 2024 from 1,082 in fiscal 2020, reducing their share to 28% from 78% over the period.
Instead, companies are increasingly executing CSR programmes directly, indicating stronger in-house capabilities and tighter control over implementation.
However, stakeholder consultations cited in the report suggest that this shift is partly driven by challenges in finding capable grassroots NGOs, particularly in rural areas. Many organisations lack the systems, governance structures, and technological capacity required to deliver high-impact projects at scale.
The report describes the situation as a 'clarion call' for NGOs to upgrade governance standards, improve financial management, and adopt technology-driven monitoring systems.
It also emphasises that corporates must invest not only in their own CSR teams but also in building the capacity of NGO partners to ensure effective utilisation of funds and sustainable outcomes.
The evolving regulatory landscape is expected to further influence CSR dynamics.
The proposed Corporate Laws (Amendment) Bill, 2026 seeks to ease compliance requirements by raising the net profit threshold for CSR applicability to ₹10 crore from ₹5 crore and extending the timeline for transferring unspent CSR funds to 90 days from 30 days.
These changes, if enacted, could optimise the CSR base and provide companies with greater operational flexibility.
Maya Vengurlekar, chief operating officer (COO) of CRISIL Foundation, says the next phase of CSR will hinge on smarter capital allocation.
“The data points to a clear institutionalisation of CSR over the past decade. Companies are moving from cheque-writing models to structured programme management, with stronger monitoring, outcome tracking and board-level oversight,” she says.
She added that data-driven targeting, especially towards districts with concentrated development deficits, can significantly improve the depth and durability of impact.
The report concludes that CSR will remain a critical lever in India’s development journey, particularly in achieving its sustainability goals and transition towards a Viksit Bharat.
Experts cited in the yearbook emphasise the importance of collaborations—especially public-private partnerships—and the use of technology, including artificial intelligence, to enhance monitoring, transparency, and scalability of CSR interventions.
However, bridging regional disparities, strengthening the NGO ecosystem, and improving data-led decision-making will be crucial to ensuring that CSR spending not only increases in volume but also delivers equitable and lasting impact.
