The education sector in India has received the highest share of Corporate Social Responsibility (CSR) funds between the financial years 2016-17 and 2020-21, according to data from the Union ministry of corporate affairs
New Delhi: India’s Corporate Social Responsibility (CSR) fund has been used primarily for education, followed by health and rural development between the financial years 2016-17 and 2020-21, according to data from the Union ministry of corporate affairs. During this five-year period, the education sector received INR 29,918 crore (approximately USD 4.1 billion) in CSR funds, while the health sector received INR 2,0716 crore (approximately USD 284 million) and rural development and related schemes received INR 9,820 crore (approximately USD 1.3 billion).
CSR spending is required for Indian companies with a turnover of more than INR 1,000 crore (approximately USD 137 million) or net profit of at least INR 5 crore (approximately USD 675,000), and these companies are required to report their CSR activities to the government.
The states of Maharashtra, Karnataka, Gujarat, Andhra Pradesh, and Tamil Nadu received the highest share of CSR funds, while a significant amount was also spent at the national level.
There are 29 categories under which CSR funds can be distributed, including education, health, rural development, and various charitable causes such as setting up orphanages and promoting sports. Companies may also donate directly to the Prime Minister’s National Relief Fund.
The data suggests that the amount of CSR funds received by a state may be influenced by the level of industrial activity in that state. Maharashtra, which is the largest contributor to India’s GDP, received the highest amount of CSR funds (INR 15,000 crore, or approximately USD 2 billion) during the five-year period.
Karnataka received INR 5,922 crore (approximately USD 811 million) and Gujarat received INR 5,294 crore (approximately USD 725 million).
In a reply to the Rajya Sabha, the corporate affairs ministry said, “Around 33% of the total CSR spent by the companies is in the states of Maharashtra, Karnataka, Gujarat, Andhra Pradesh and Tamil Nadu. Similarly, around 60% of the total CSR spent by the companies is in the areas of education, health care and rural development-related activities.”
(India CSR)
