A recent report by CRISIL shows that corporate social responsibility (CSR) spending in India has increased sharply over the past decade, but the distribution of these funds remains uneven. While companies have collectively spent over ₹1.22 lakh crore on CSR activities since the law mandating such spending came into effect in 2013, much of this growth has occurred in recent years, especially between FY20 and FY24.
Despite the rise in spending, regions that need the most support—known as aspirational districts—have not received a fair share. In FY24, only about 20% of eligible companies undertook projects in these districts, and the total amount spent there was just ₹2,390 crore, or roughly 12% of overall CSR expenditure.
The report highlights that CSR funds are still concentrated in more developed or industrialised regions, leading to disparities in development. It suggests that companies need to better align their CSR initiatives with national priorities to ensure that underdeveloped areas benefit more.
Another key trend is that companies are increasingly managing CSR projects on their own rather than relying on NGOs. This shift reflects stronger internal capabilities and improved oversight, but it also points to challenges in finding capable implementation partners, especially in rural areas.
Overall, while CSR in India has become more structured and impactful over time, experts say there is still a need to direct funds more strategically toward regions with the greatest developmental gaps.
Comments are closed