Twelve years after India’s CSR law came into force, corporate giving has evolved into a more strategic, impact-driven force for national development and social change.
By Rusen Kumar
India changed the CSR story when it passed the Companies Act in 2013, but the CSR provisions under Section 135 and the CSR Rules came into force on 1 April 2014. On 1 April 2026, India completes 12 years of the CSR law in force. But the bigger story is not only about the law. It is about a change in mindset. The recent reports show that CSR in India has moved far beyond one-time charity. It is now seen as a planned and purpose-led effort that can support national growth, social justice, and long-term change.
The numbers tell a strong story. Between fiscal 2014 and fiscal 2024, qualifying listed companies together spent more than Rs 1.22 lakh crore on CSR activities. What is even more striking is that nearly 63% of this amount, or around Rs 77,000 crore, was spent in the last five years alone. The recent Crisil Foundation CSR Yearbook 2025 shows that companies are not only spending more, but are also taking CSR more seriously. In fiscal 2024, overall CSR spending rose sharply to Rs 19,208 crore, up 30% from Rs 14,714 crore in fiscal 2023.
This rise is not only about big money. It also reflects better intent. In fiscal 2024, 2,020 companies met the CSR criteria, and 1,678 of them reported CSR spending. More importantly, 67% of these companies spent 2% or more of their average profit on CSR. The total CSR spend as a share of average profit also rose to 2.65%, compared with 2.26% in the previous year. This means many firms are now going beyond the basic rule and treating CSR as a serious part of business responsibility.
Where is this money going? The yearbook shows that education and skill development got the largest share of CSR funds at 18%. Healthcare and sanitation came next at 14%. Together, these two sectors received Rs 6,068 crore in fiscal 2024. Environment stood third, but with a much smaller share of 3%. This pattern tells us that companies are putting most of their social money into people’s lives in direct ways—through schools, jobs, health and basic well-being. These are not small choices. They reflect the real needs of India.
The private sector remained the biggest force in CSR. Out of the total fiscal 2024 CSR spending, private sector companies, including foreign firms, contributed Rs 14,057 crore, or 73% of the total. Public sector companies spent Rs 5,151 crore. Among industries, manufacturing accounted for the largest share of CSR spending, followed by banking, financial services and insurance, and then the energy sector. This shows that CSR is not limited to one type of company. It has become a broad part of corporate life across sectors.
Yet the report also points to serious gaps. CSR spending is still heavily concentrated in a few places. Maharashtra alone accounted for 34% of the total spend in fiscal 2024, while Delhi NCR took 12%. In contrast, many far-off and poorer regions continue to receive much less attention. The gap becomes clearer in aspirational districts. Only 397 companies worked in these districts, and just Rs 2,390 crore—or 12% of total CSR spending—went there. This is a reminder that money is growing, but fairness in distribution is still weak.
Another important shift has taken place in the way companies look at CSR. The report says CSR has changed from being “mandatory” to “strategic” and now to “catalytic.” In simple words, firms now want CSR to create lasting value, not just yearly compliance. Boards, CSR committees and senior leaders are playing a bigger role. Impact assessment, public disclosure and a clear exit strategy are also becoming more important. Companies are slowly learning that true social impact needs planning, patience and strong follow-through.
Still, all is not smooth. One concern is the falling use of implementing agencies. In fiscal 2024, only 566 companies used implementing partners, down from 687 in fiscal 2023. The report says many firms struggle to find strong NGOs, especially in rural India. Many NGOs have the right heart, but not always the systems, staff, or financial strength needed for large projects. This is why the next phase of CSR must invest in NGO capacity, better talent and stronger local systems. Without that, big budgets may not lead to deep change.
The way ahead is clear. CSR in India now needs more partnerships, more innovation and more trust. The report stresses the value of working with government, NGOs, academia and local groups. It also highlights the growing role of technology, including AI, in planning, tracking and reporting CSR work. India’s CSR journey has come a long way in ten years. The next decade should focus on deeper reach, stronger impact and fairer growth. That is where CSR can truly become a force for national progress.
About the Author
Rusen Kumar, Founder and Editor of India CSR®, is a renowned thought leader in the field of Corporate Sustainability and Corporate Social Responsibility (CSR). He regularly writes insightful articles and conducts interviews with industry leaders, policymakers, and development practitioners, promoting dialogue on responsible business and sustainable development through India CSR®.
