Corporate Social Responsibility in India: An Analytical Overview of CSR Expenditure (2018-19 to 2022-23)

CSR in India or Corporate Social Responsibility has emerged as one of the most transformative tools in India’s development landscape. Since the introduction of Section 135 of the Companies Act, 2013, India became the first country to legally mandate CSR in India spending for qualifying companies. Over the past decade, this framework has not only mobilized financial resources but also fostered corporate accountability in addressing pressing socio-economic challenges. Between 2018-19 and 2022-23, CSR in India witnessed remarkable growth, diversification, and impact across states and sectors. This article provides an analytical overview of CSR expenditure during these five years, highlighting trends, sectoral priorities, compliance measures, and the way forward for inclusive growth.

Rising CSR Investments: A Macro View

CSR spending in India has steadily increased from ₹20,217.65 crore in FY 2018-19 to ₹29,987.92 crore in FY 2022-23, reflecting both corporate commitment and the expanding scale of developmental needs. This upward trajectory underscores two key realities: the growing profitability of Indian corporates and the alignment of their social contributions with national development priorities.

The peak in FY 2022-23, with nearly ₹30,000 crore invested in CSR projects, indicates the resilience of CSR even in post-pandemic recovery years. Despite economic challenges, corporates have sustained and, in some cases, expanded their social footprint.

Sector-Wise CSR Expenditure: Shaping Development Priorities

A closer look at the sectoral distribution of CSR spending reveals significant insights into corporate India’s development priorities.

• Education has consistently remained the largest beneficiary, with allocations rising from ₹6,111 crore in 2018-19 to ₹10,085 crore in 2022-23. This indicates long-term investments in literacy, infrastructure, scholarships, and digital learning—key to India’s human capital development.
• Healthcare witnessed sharp fluctuations, peaking at ₹7,816 crore in 2021-22 during the pandemic years and slightly normalizing to ₹6,830 crore in 2022-23. The surge reflected urgent needs like oxygen plants, hospitals, vaccination drives, and telemedicine initiatives.
• Rural Development Projects continued to be a priority, though spending decreased from ₹2,434 crore in 2018-19 to ₹2,005 crore in 2022-23. While the decline may seem concerning, it suggests a shift towards more targeted interventions rather than broad rural infrastructure.
• Environmental Sustainability and Conservation of Natural Resources recorded significant growth, especially in FY 2021-22 and FY 2022-23, when investments rose to ₹1,960 crore and ₹580 crore, respectively. This demonstrates increasing corporate alignment with global sustainability goals and climate resilience.
• Skill Development and Vocational Training received consistent attention, with vocational skills allocations crossing ₹1,164 crore in 2022-23. Similarly, livelihood enhancement projects grew to ₹1,654 crore, signaling a strong focus on employability and self-reliance.
• Other notable categories include Women Empowerment (₹396 crore in 2022-23), Sports Promotion (₹526 crore), and Art & Culture (₹441 crore). These areas showcase CSR’s role beyond essential services, contributing to inclusive growth and cultural preservation.

Together, these numbers confirm that CSR in India is not merely charity—it is structured investment in nation-building, sustainability, and empowerment.

State-Wise Distribution: Unequal Yet Expanding Reach

The geographical spread of CSR expenditure highlights disparities and opportunities.

• Maharashtra consistently topped the charts, attracting ₹5,494 crore in FY 2022-23 alone. Being India’s industrial hub, the state benefits from corporate headquarters and large-scale operations.
• Karnataka, Gujarat, and Delhi also emerged as major recipients, with spending above ₹1,900 crore each in FY 2022-23. This concentration reflects economic hubs with active corporate bases.
• Uttar Pradesh and Rajasthan witnessed notable increases, showing growing CSR penetration in northern India.
• On the other hand, North-Eastern states such as Mizoram, Nagaland, and Sikkim received significantly lower allocations, though their growth rates indicate rising attention. For example, Mizoram’s CSR spending grew from ₹0.11 crore in 2018-19 to ₹10.99 crore in 2022-23.

This uneven distribution calls for better CSR regional planning, ensuring that underserved states—especially in the North-East and tribal belts—are not left behind.

Accountability, Compliance, and Transparency

CSR in India is not only about financial contributions but also about corporate governance and accountability. Under the Companies Act, every CSR-mandated company must:

• Constitute a CSR Committee to guide policy and implementation.
• Ensure Board-level oversight and CFO certification for fund utilization.
• Disclose CSR policies, projects, and outcomes in annual reports.
• Report unspent CSR funds under CARO 2020, ensuring financial accountability.

Transparency has been further strengthened by requiring companies to publish CSR details on their websites. Importantly, the government has penalized or issued notices to around 100 companies over the last five years for non-compliance. This shows that while CSR is a developmental tool, it also carries legal accountability, ensuring it remains purposeful rather than perfunctory.

CSR and Civil Society: The Role of Trusts and NGOs

While corporates provide funding, it is often civil society organizations like Drishti Foundation Trust that design, implement, and monitor on-ground projects. CSR’s effectiveness is closely tied to partnerships with grassroots organizations that understand community needs.

For example, projects in education, healthcare, and skill development require localized execution, cultural sensitivity, and long-term engagement—strengths that NGOs bring to the table. Moreover, NGOs ensure community participation, capacity building, and sustainability, which corporates alone cannot achieve.

At Drishti Foundation Trust, our mission aligns with these priorities:

• Empowering education through scholarships, digital literacy, and school infrastructure.
• Strengthening healthcare access for marginalized communities.
• Promoting environmental sustainability by engaging youth in conservation programs.
• Skill and livelihood training to enhance employability among rural youth and women.

These collaborations create a multiplier effect, transforming CSR funds into sustainable social impact.

Key Insights and Way Forward

From analyzing CSR expenditure between 2018-19 and 2022-23, several patterns emerge:

1. Education and Healthcare dominate: Together, they account for more than half of total CSR expenditure, highlighting their centrality in India’s development agenda.
2. Pandemic as a catalyst: COVID-19 reshaped CSR priorities, leading to unprecedented healthcare spending.
3. Sustainability gains ground: With rising focus on climate action and resource conservation, CSR is aligning with SDGs and ESG frameworks.
4. Regional disparities persist: States with strong corporate presence dominate CSR inflows, while backward regions need targeted attention.
5. Accountability mechanisms are stronger: Mandatory reporting, audits, and penalties ensure better compliance.

Going forward, CSR must evolve from short-term charity to long-term impact investments. Corporates should collaborate with NGOs, governments, and communities to design evidence-based, scalable programs. Special emphasis must be given to digital inclusion, renewable energy, water conservation, and rural entrepreneurship.

Conclusion

CSR in India has grown into a powerful instrument of inclusive development, channeling nearly ₹1.3 lakh crore in five years into social causes. Its evolution reflects both corporate responsibility and societal needs. Yet, the true impact of CSR lies not in the quantum of money spent, but in how effectively it transforms lives at the grassroots level.

As Founder of Drishti Foundation Trust, I firmly believe CSR must be guided by compassion, accountability, and innovation. Together—corporates, NGOs, and communities—we can build an India that is not only economically strong but also socially equitable and environmentally sustainable.

CSR is not just compliance. It is a commitment to nation-building. And in this journey, every rupee counts, every partnership matters, and every life touched is a step toward a brighter future.

“Reach out to explore collaborations, discover our initiatives, and contribute to creating meaningful, lasting change.”

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