Spending on corporate social responsibility (CSR) in India has grown significantly since it became a legal mandate with the introduction of Section 135 of the Companies Act, 2013.

Our analysis shows that, over the decade through fiscal 2024, qualifying listed companies collectively spent more than Rs 1.22 lakh crore on various CSR activities. Close to 63% (Rs 77,000 crore) of that was spent over fiscals 2020-2024, reflecting a clear surge in CSR intent and planning by India Inc in recent years.

Geographic distribution of the spend, however, remains uneven, with targeted investment in aspirational districts - which face the most developmental challenges – limited relative to overall spend.

In fiscal 2024, for instance, of the total 2,020 qualifying companies, only 397 implemented projects in aspirational districts - hardly 20% of the universe. The cumulative CSR spend of these 397 companies towards projects impacting aspirational districts was Rs 2,390 crore, i.e. 12% of the total CSR spend of Rs 19,208 crore, indicating the need for a more concerted effort.

The findings of the analysis, published in the 10^th edition of Crisil's CSR Yearbook released today, titled 'Decade Decode', highlight an opportunity for deeper alignment with national development priorities.

Says Amish Mehta, Managing Director and CEO, Crisil Limited, "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. As India advances toward Viksit Bharat, with inclusive growth, a sharper alignment between corporate capital and regions with the greatest developmental deficits can meaningfully amplify long-term socio-economic outcomes. CSR 2.0 hinges on the ability of all stakeholders to adapt, innovate and build capacities to deliver high impact."

Meanwhile, in a notable shift, companies are progressively taking control of programme delivery, indicating stronger in-house execution capabilities, tighter programme oversight, reducing dependence on implementation partners.

Over the five years through fiscal 2024, the number of companies that utilised implementing agencies dropped to 566 from 1,082 in 2020, representing a decline to 28% from 78% of the total number of companies.

Our interactions with various stakeholders indicate that finding quality on-ground non-governmental organisations (NGOs) to partner with, especially in rural areas, is a challenge. Barring a few notable ones, implementing agencies lack adequate capacity to design, execute and measure high-impact projects, despite the right intent and focus.

This is a clarion call for NGOs. To be able to leverage and unlock CSR effectively, they need to put in place strong systems for governance and compliance, robust financial management systems, and build muscle for technology and automation to ensure the funds can be utilised effectively.India Inc, too, needs to invest in building the capacity of NGOs as well as their internal CSR-managing teams to deliver impactful and measurable CSR initiatives.

Says Maya Vengurlekar, Chief Operating Officer, Crisil Foundation, "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. As governance standards strengthen, the next frontier for CSR will be strategic capital allocation. Greater data-led targeting - especially toward districts with concentrated development deficits - can significantly improve the depth and durability of impact. There is an opportunity to not just spend more but also spend more wisely."

Meanwhile, as part of its ongoing efforts to improve the ease of doing business and reduce the compliance burden on corporates, the government has introduced the Corporate Laws (Amendment) Bill, 2026 in Lok Sabha. The proposed measures include changes to the CSR rules, including raising the net profit criteria threshold to Rs 10 crore from Rs 5 crore currently and increasing the number of days for transferring unspent CSR funds to a separate account to 90 days from 30 days now - changes that can optimise the CSR base. This is an evolving space and will bear watching.

Overall, we believe CSR has a promising future and will remain a vital lever in the transition to Viksit Bharat and meeting the country's Sustainable Development Goals and net-zero targets.

 

https://niti.gov.in/aspirational-districts-programme