Corporate Social Responsibility (CSR) in India increased by 12.8% in FY24 over the previous year with top corporate contributors HDFC Bank and Reliance Industries, as assessed by CareEdge.

CSR expenditure has grown steadily, registering a CAGR of 8.74% between FY20 and FY24, reaching Rs 34,909 crore in FY24. During this period, CSR initiatives spanned 36 states and union territories, covering 59,633 projects.

Non-PSUs account for nearly 86% of the total CSR spend, while PSUs contribute 14%. This reflects the disproportionate number of companies, with 97% non-PSUs and only 3% PSUs. PSU spending, though lower, aligns with government priorities such as rural infrastructure, skill development and environmental sustainability. Non-PSUs drive global CSR growth, with PSUs playing a complementary strategic role.

Allocations remain concentrated in Education (34.76%) and Health (20.48%), followed by environmental sustainability, rural development and livelihood improvement, areas that align with national priorities and business focus.

The private sector accounted for Rs 30,136 crore of CSR spending in FY24, while PSUs contributed Rs 4,773 crore. Maharashtra, Gujarat and Karnataka were the top receiving states, with Maharashtra attracting just over 17% of the total funds.

In FY24, more than 27,000 companies were in CSR compliance. Over the period from FY20 to FY24, the proportion of companies spending less than the prescribed CSR amount fell steadily from 66% in FY20 to 37% in FY24, while those spending more than the prescribed amount increased from 34% to 63%.

This change reflects stronger compliance and a growing strategic commitment to CSR, indicating that a growing majority of companies now see CSR as a value-based investment rather than a mere legal obligation.

The introduction of the Companies Act, 2013 marked a major transformation in corporate philanthropy in India, making Corporate Social Responsibility (CSR) mandatory for companies that exceed specified financial thresholds.

According to the law, any company with a net worth of more than Rs 500 crore, or a turnover of more than Rs 1 billion or a net profit of more than Rs 5 crore in the previous financial year must allocate at least 2% of its average net profit for the last three years to CSR activities.