74% of foreign-origin firms, despite spending less than Rs. 10 crore annually, account for nearly half of the CSR value generated by global companies.
NEW DELHI (India CSR): A decade after the implementation of India’s landmark Corporate Social Responsibility (CSR) law, corporate giving has evolved from a compliance obligation to a strategic, purpose-led investment, according to a new report by Sattva Consulting titled “CSR’s Next Act: How the Coming Decade Will Redefine Corporate Impact.”
The report, based on data from the Ministry of Corporate Affairs and company filings, reveals that over 4,149 companies accounted for Rs. 30,000 crore in CSR spending in FY 2023–24, representing 87% of the total outlay. Notably, 765 companies spent at least twice their mandated CSR budgets, while 380 companies without legal obligations voluntarily contributed Rs. 800 crore to social development programmes.
Shift from Projects to Problem-Solving
The study highlights a clear transition in India’s CSR landscape—from funding isolated projects to solving systemic issues. Nearly 40% of large-company CSR budgets are now committed to multi-year programmes, signalling a maturing ecosystem driven by long-term impact.
Smaller firms are also leading the way in intent-led CSR. Companies spending below Rs. 1 crore annually are directing funds to local causes such as village schools and health centres, showcasing deep-rooted community engagement.
Global and Indian Companies Show Contrasting Approaches
While Indian-origin firms account for three-fourths of total CSR spending, multinational corporations (MNCs) now contribute 25% of the total number of companies and 18% of total CSR expenditure.
The report notes that global firms, despite smaller budgets, deliver high-impact programmes by leveraging global frameworks and strategic alignment with business objectives. In contrast, Indian firms focus on large-scale, locally rooted programmes, particularly in education, healthcare, livelihoods, and climate action.
A mere 2% of Indian companies, with annual CSR budgets of over Rs. 50 crore accounts for more than 52% of Indian CSR. This concentration of high-budget CSR capital is almost exclusively local—of the 22 firms spending over Rs. 200 crore, only one is of global origin.
CSR Spending Trends in India (FY 2023–24)
| Category | Number of Companies | CSR Spending Behaviour | Estimated CSR Contribution (₹ Crore) | Observation |
|---|---|---|---|---|
| Companies spending at least twice their prescribed CSR budget | 765 | Exceeded statutory CSR obligation | — | Reflects strong intent-led giving beyond compliance |
| Companies with no legal CSR obligation, but voluntarily contributing | 380 | Voluntary CSR contribution | Over ₹800 crore | Shows widening culture of corporate philanthropy |
| Total companies analysed in the study | 4,149 | Representing 87% of total CSR spend | ₹30,000 crore | Indicates a maturing, purpose-driven CSR ecosystem |
CSR Expands Beyond Metros
Corporate philanthropy is moving beyond big cities. Tier-1 districts’ share in total CSR inflows fell from 33% to 29% in three years, while Tier-2 and industrial districts grew by 55% and 120%, respectively.
Cities such as Madurai, Mysuru, Varanasi, and Vadodara have emerged as new CSR hubs. Industrial districts like Jharsuguda, Raigarh, Jamnagar, and Ballari now attract nearly one-fifth of total CSR spending, the report said.
***
Rise of Corporate Foundations and Specialised Institutions
More than 60% of large-budget companies now operate through their own corporate foundations, allowing for greater control and strategic continuity.
In FY 2023–24, nearly one-fifth of CSR implementation funding was channelled through specialised institutions such as universities, hospitals, and research centres—marking a significant diversification beyond traditional NGOs.
***
CSR Aligns with Industry Materiality
CSR spending is becoming increasingly aligned with business priorities. About 52% of CSR investments by India’s top 20 industries were linked to sectors relevant to their core operations.
Industries such as IT/ITES and Automotive exhibited the highest alignment—over 75% of their CSR budgets went to education and skill development, strengthening both national development goals and business ecosystems.
***
The Shifting Geographies of CSR
CSR Flows Move Beyond Metros, Spreading to Tier-2 Cities and Industrial Districts
India’s Corporate Social Responsibility (CSR) landscape is undergoing a quiet yet remarkable transformation. Once heavily concentrated in metropolitan cities, corporate giving is now expanding its reach into emerging industrial hubs and mid-sized cities, marking a decisive shift in the geography of impact.
For much of the past decade, CSR activity was dominated by metros and their surrounding clusters, which together attracted nearly one-third of all CSR inflows. However, between FY 2022 and FY 2024, this pattern began to change. Tier-1 cities saw their CSR share decline from 33% to 29%, while Tier-2 cities and industrial regions surged ahead, registering growth rates of 55% and 120%, respectively.
New CSR magnets are emerging across India’s map. Madurai, Varanasi, Mysuru, and Vadodara have each witnessed exponential increases in CSR investments, supported by both domestic and global corporations. Industrial powerhouses such as Jharsuguda, Raigarh, Jamnagar, and Ballari now account for nearly one-fifth of total district-level CSR spending, reflecting a more distributed and inclusive approach to development funding.
Despite this spread, concentration remains a concern. Around 75% of total CSR funds are still channelled into just 193 districts, many of which have a low Multi-Dimensional Poverty Index (MPI)—indicating relatively lower levels of deprivation. The challenge, therefore, lies not in how far CSR has travelled, but in how deeply it reaches those who need it most.
Encouragingly, there are signs of progress. CSR funding to India’s Aspirational Districts has tripled in the past decade, rising from 1.3% to 4.5% of total inflows. Private corporations now contribute nearly two-thirds of this amount, with the banking, financial services, and energy sectors taking the lead—industries whose rural linkages make them natural partners in inclusive growth.
This shift signals a maturing CSR ecosystem—one that is moving from metropolitan concentration toward a more balanced, regionally responsive model of corporate giving, aligning social investments with India’s broader developmental priorities.
***
A Plural and Purposeful Future
Srikrishna Sridhar Murthy, Co-founder and CEO of Sattva Consulting, said the coming decade would redefine corporate impact.
“CSR is no longer a monolithic ecosystem. Diverse pathways to giving are emerging, shaped by company size, sector, region, and origin. Corporate philanthropy is increasingly enabling private sector participation in research and development, funding universities and institutes of national importance, and supporting breakthroughs across education, healthcare, livelihoods, and climate action, often where traditional funders cannot reach. This evolution underscores the need for a nuanced perspective as companies plan their future social investments. CSR today embodies a company’s values and brand philosophy. Multi-year programmes, partnerships with institutional implementers, and investments in underserved geographies illustrate a maturing ecosystem where impact is deliberate.,” he said in a note accompanying the report.
The report concludes that India’s CSR movement is now “plural, dynamic, and deeply intertwined with the nation’s development fabric,” calling for a renewed focus on inclusivity, capacity building, and measurable impact.
(India CSR)
