Reliance on NGOs is declining as corporates prefer direct implementation
By Rusen Kumar
MUMBAI (India CSR): CSR spending by qualifying listed companies in India rose sharply over the decade through fiscal 2024 to more than Rs 1.22 lakh crore, with nearly two-thirds of the total outlay recorded during fiscals 2020-2024, according to Crisil.
The report said the rise reflects a significant strengthening of CSR intent and planning by India Inc, but added that investment in aspirational districts remains limited in relation to overall spending.
Only 397 of the 2,020 qualifying companies implemented projects in aspirational districts in fiscal 2024, accounting for a cumulative spend of Rs 2,390 crore, or 12 per cent of the total CSR expenditure of Rs 19,208 crore, it said.
The 10th edition of Crisil’s CSR Yearbook, titled Decade Decode, further highlighted a declining reliance on implementing agencies as corporates increasingly prefer direct implementation of programmes.
CSR spending rises sharply over the decade
Spending on corporate social responsibility (CSR) in India has grown significantly since it became a legal mandate with the introduction of Section 135 of the Companies Act, 2013.
“Our analysis shows that, over the decade through fiscal 2024, qualifying listed companies collectively spent more than Rs 1.22 lakh crore on various CSR activities. Close to 63% (Rs 77,000 crore) of that was spent over fiscals 2020-2024, reflecting a clear surge in CSR intent and planning by India Inc in recent years.” the report said.
Table 1: CSR spending over the decade
| Particulars | Amount / Share |
|---|---|
| Total CSR spend over the decade through fiscal 2024 | More than Rs 1.22 lakh crore |
| CSR spend during fiscals 2020-2024 | Rs 77,000 crore |
| Share of total spend during fiscals 2020-2024 | 63% |
Geographic distribution remains uneven
Geographic distribution of the spend, however, remains uneven, with targeted investment in aspirational districts – which face the most developmental challenges – limited relative to overall spend.
In fiscal 2024, for instance, of the total 2,020 qualifying companies, only 397 implemented projects in aspirational districts — hardly 20% of the universe. The cumulative CSR spend of these 397 companies towards projects impacting aspirational districts was Rs 2,390 crore, i.e. 12% of the total CSR spend of Rs 19,208 crore, indicating the need for a more concerted effort.
Table 2: CSR spend in aspirational districts in fiscal 2024
| Particulars | Number / Amount |
|---|---|
| Total qualifying companies | 2,020 |
| Companies implementing projects in aspirational districts | 397 |
| Share of companies working in aspirational districts | ~20% |
| CSR spend towards aspirational districts | Rs 2,390 crore |
| Total CSR spend in fiscal 2024 | Rs 19,208 crore |
| Share of aspirational district spend in total CSR spend | 12% |
Opportunity for stronger national alignment
The findings of the analysis, published in the 10th edition of Crisil’s CSR Yearbook released today, titled Decade Decode, highlight an opportunity for deeper alignment with national development priorities.
Amish Mehta on CSR’s evolution
Amish Mehta, Managing Director and CEO, Crisil Limited, says, “Over the past decade, CSR in India has matured significantly. We are seeing companies build stronger internal capabilities and assume greater ownership of programme implementation. This reflects improved governance, accountability and impact measurement. As India advances toward Viksit Bharat, with inclusive growth, a sharper alignment between corporate capital and regions with the greatest developmental deficits can meaningfully amplify long-term socio-economic outcomes. CSR 2.0 hinges on the ability of all stakeholders to adapt, innovate and build capacities to deliver high impact.”
Companies are taking greater control of implementation
Meanwhile, in a notable shift, companies are progressively taking control of programme delivery, indicating stronger in-house execution capabilities, tighter programme oversight, and reducing dependence on implementation partners.
Over the five years through fiscal 2024, the number of companies that utilised implementing agencies dropped to 566 from 1,082 in 2020, representing a decline to 28% from 78% of the total number of companies.
Table 3: Declining use of implementing agencies
| Year / Period | Companies using implementing agencies | Share of total companies |
|---|---|---|
| Fiscal 2020 | 1,082 | 78% |
| Fiscal 2024 | 566 | 28% |
NGO capacity remains a challenge
“Our interactions with various stakeholders indicate that finding quality on-ground non-governmental organisations (NGOs) to partner with, especially in rural areas, is a challenge. Barring a few notable ones, implementing agencies lack adequate capacity to design, execute and measure high-impact projects, despite the right intent and focus.”, Crisil said.
A call for stronger NGO systems
This is a clarion call for NGOs. To be able to leverage and unlock CSR effectively, they need to put in place strong systems for governance and compliance, robust financial management systems, and build muscle for technology and automation to ensure the funds can be utilised effectively.
India Inc, too, needs to invest in building the capacity of NGOs as well as their internal CSR-managing teams to deliver impactful and measurable CSR initiatives.
Maya Vengurlekar on the next frontier of CSR
Maya Vengurlekar, Chief Operating Officer, Crisil Foundation, says, “The data points to a clear institutionalisation of CSR over the past decade. Companies are moving from cheque-writing models to structured programme management, with stronger monitoring, outcome tracking and board-level oversight. As governance standards strengthen, the next frontier for CSR will be strategic capital allocation. Greater data-led targeting—especially toward districts with concentrated development deficits—can significantly improve the depth and durability of impact. There is an opportunity to not just spend more but also spend more wisely.”
Proposed changes in the law
Meanwhile, as part of its ongoing efforts to improve the ease of doing business and reduce the compliance burden on corporates, the government has introduced the Corporate Laws (Amendment) Bill, 2026 in Lok Sabha.
The proposed measures include changes to the CSR rules, including raising the net profit criteria threshold to Rs 10 crore from Rs 5 crore currently and increasing the number of days for transferring unspent CSR funds to a separate account to 90 days from 30 days now—changes that can optimise the CSR base. This is an evolving space and will bear watching.
Table 4: Proposed CSR-related changes under the Corporate Laws (Amendment) Bill, 2026
| Provision | Current | Proposed |
|---|---|---|
| Net profit criteria threshold | Rs 5 crore | Rs 10 crore |
| Days for transferring unspent CSR funds to a separate account | 30 days | 90 days |
Outlook for CSR in India
“Overall, we believe CSR has a promising future and will remain a vital lever in the transition to Viksit Bharat and meeting the country’s Sustainable Development Goals and net-zero targets.”, the report said.
Rusen Kumar, 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.
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