NEW DELHI (India CSR): Gujarat has cemented its position as the third-largest recipient of Corporate Social Responsibility (CSR) funds in India, following Maharashtra and Karnataka. Over the last five years, the state has seen a cumulative CSR investment of ₹7,140 crore by more than 3,000 companies, according to the Gujarat CSR Performance Report 2018–2023 by Fulcrum – Capitalising CSR, a Vadodara-based consulting and research firm.
86% Growth in CSR Spending Over Five Years
In 2018–19, Gujarat received ₹1,082 crore in CSR funds. By 2022–23, this figure surged to ₹2,008 crore, reflecting an 86% increase. The report notes that CSR spending rose by 25% from ₹1,604 crore in 2021–22 to ₹2,008 crore in 2022–23, underlining a significant upward trend in corporate contributions to societal development.
Education and Healthcare as Key Focus Areas
A major portion of CSR funds in Gujarat has been directed toward three key sectors:
- Education: ₹2,437 crore (34% of total spending).
- Healthcare: ₹2,217 crore.
- Rural Development: ₹513 crore.
“Gujarat’s CSR funding is driving meaningful change in communities, with a focus on education, healthcare, and sustainability. This is not just improving lives but also building a more equitable future,” said Arun Mathai Marette, co-founder and co-CEO of Fulcrum.
CSR investments in education have nearly doubled over the five years, with companies renovating schools, providing scholarships for underprivileged students, and enhancing teacher training.
Ahmedabad Leads in CSR Contributions
Among Gujarat’s districts, Ahmedabad emerged as the leader, receiving ₹1,740 crore in CSR funds, followed by:
- Vadodara: ₹452 crore.
- Surat: ₹396 crore.
- Bharuch: ₹320 crore.
- Valsad: ₹233 crore.
In contrast, Mahisagar district, one of Gujarat’s newest, received less than ₹1 crore in CSR funding. Other districts like Dwarka, Chhota Udepur, and Aravalli also lagged behind in attracting corporate contributions.
Underfunded Districts Need Attention
“Despite Gujarat’s overall growth in CSR spending, rural and underdeveloped districts such as Mahisagar, Dwarka, and Aravalli have received minimal CSR investments,” observed Parthesh Vyas, co-founder and co-CEO of Fulcrum.
He stressed the need for companies to focus on underfunded areas and aspirational districts like Narmada and Dahod, where developmental efforts can make a profound impact.
Shift in CSR Priorities
The report also highlights a decline in CSR spending on rural development projects since 2018–19. This trend is attributed to increased budget allocations by the Union and Gujarat governments for rural infrastructure, prompting corporate houses to divert CSR funds to other developmental sectors to avoid duplication.
A Call for Inclusive Development
To ensure balanced growth across the state, experts advocate for a more inclusive distribution of CSR funds. By targeting neglected districts and aligning CSR projects with regional developmental needs, companies can significantly enhance their impact.
Gujarat’s rising CSR spending, particularly in education and healthcare, exemplifies how corporate contributions can transform communities. However, the disparity in fund distribution calls for a more strategic approach to address the needs of underserved regions.
