CSR Spending Soars in India, But Priority Districts Lag Behind: Crisil Report
A comprehensive analysis by Crisil has revealed that corporate social responsibility (CSR) spending in India has experienced a dramatic increase since it became legally mandated under Section 135 of the Companies Act, 2013. Over the decade through fiscal 2024, qualifying listed companies collectively allocated more than Rs 1.22 lakh crore to various CSR initiatives. Notably, a significant portion of this expenditure, approximately 63% or Rs 77,000 crore, was concentrated in the last five years, from fiscal 2020 to 2024, indicating a substantial surge in corporate commitment and strategic planning in recent times.
Geographic Disparities in CSR Allocation
Despite this overall growth, the geographic distribution of CSR funds remains highly uneven. The report highlights that targeted investment in aspirational districts, which are identified as facing the most severe developmental challenges, is limited relative to the total CSR spend. For instance, in fiscal 2024, out of 2,020 qualifying companies, only 397 implemented projects in these priority areas, representing a mere 20% of the corporate universe. The cumulative CSR spend directed towards aspirational districts by these companies was Rs 2,390 crore, accounting for just 12% of the total CSR expenditure of Rs 19,208 crore for that year.
This disparity underscores a critical need for more concerted efforts to align corporate capital with regions that have the greatest developmental deficits. The findings, published in Crisil's 10th edition CSR Yearbook titled 'Decade Decode', point to a significant opportunity for deeper integration with national development priorities, such as the Viksit Bharat initiative aimed at inclusive growth.
Shift Towards Direct Implementation and Capacity Challenges
In a notable trend, companies are increasingly taking control of programme delivery, reflecting stronger in-house execution capabilities and reduced reliance on external implementing agencies. Over the five years through fiscal 2024, the number of companies utilizing implementing agencies dropped from 1,082 to 566, a decline from 78% to 28% of the total. This shift indicates improved governance, accountability, and impact measurement within corporate CSR frameworks.
However, challenges persist, particularly in finding quality non-governmental organizations (NGOs) to partner with, especially in rural areas. Many implementing agencies lack the necessary capacity to design, execute, and measure high-impact projects effectively, despite having the right intent. This situation serves as a clarion call for NGOs to enhance their systems for governance, compliance, financial management, and technology adoption to better leverage CSR funds.
Expert Insights and Future Outlook
Amish Mehta, Managing Director and CEO of Crisil Limited, commented on the maturation of CSR in India, stating, "Over the past decade, CSR has evolved significantly. Companies are building stronger internal capabilities and assuming greater ownership of programme implementation. As India advances toward Viksit Bharat, a sharper alignment between corporate capital and regions with developmental deficits can meaningfully amplify long-term socio-economic outcomes."
Maya Vengurlekar, Chief Operating Officer of Crisil Foundation, added, "The data points to a clear institutionalisation of CSR. Companies are moving from cheque-writing models to structured programme management. The next frontier will be strategic capital allocation, with greater data-led targeting towards districts with concentrated development deficits to improve impact depth and durability."
Regulatory Changes and Broader Implications
In parallel, the government has introduced the Corporate Laws (Amendment) Bill, 2026 in Lok Sabha, proposing changes to CSR rules to ease compliance burdens. Key measures include raising the net profit criteria threshold from Rs 5 crore to Rs 10 crore and extending the time for transferring unspent CSR funds to a separate account from 30 to 90 days. These adjustments aim to optimize the CSR base and reflect an evolving regulatory landscape that warrants close monitoring.
Overall, the report concludes that CSR holds a promising future as a vital lever in India's transition to Viksit Bharat and in meeting Sustainable Development Goals and net-zero targets. By fostering greater alignment between corporate spending and priority areas, stakeholders can enhance the effectiveness and impact of CSR initiatives across the country.
