CSR Spending Rises in India, but Aspirational Districts Receive Limited Share: Crisil

New Delhi, March 26, 2026: Corporate Social Responsibility (CSR) spending in India has seen significant growth over the past decade since the introduction of Section 135 of the Companies Act, 2013. However, the distribution of funds remains uneven, with aspirational districts receiving a relatively small share of total spending, according to the 10th edition of Crisil’s CSR Yearbook titled ‘Decade Decode’.

The analysis shows that qualifying listed companies collectively spent over ₹1.22 lakh crore on CSR activities through fiscal 2024. Notably, around 63% of this spending—approximately ₹77,000 crore—was concentrated in the last five years (FY20–FY24), indicating a sharp rise in CSR activity and planning in recent years.

Despite this growth, investments in aspirational districts remain limited. In fiscal 2024, only 397 out of 2,020 qualifying companies undertook projects in these regions. Their combined CSR spend stood at ₹2,390 crore, accounting for just 12% of the total CSR expenditure of ₹19,208 crore during the year.

Amish Mehta, Managing Director and CEO, Crisil Limited, said, “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.”

The report also highlights a shift in how companies implement CSR programmes. Over the five years to FY24, reliance on external implementing agencies has declined, with the number of companies engaging such partners dropping to 566 from 1,082 in FY20. This represents a decline from 78% to 28% of companies, indicating a move toward in-house programme execution and tighter oversight.

However, stakeholders cited challenges in identifying capable non-governmental organisations, particularly in rural areas. Many NGOs face limitations in governance, financial management, and technological capabilities, which affects their ability to deliver large-scale, high-impact projects.

Maya Vengurlekar, Chief Operating Officer, Crisil Foundation, said, “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.”

In parallel, the government has introduced the Corporate Laws (Amendment) Bill, 2026 in the Lok Sabha, proposing changes to CSR rules. These include raising the net profit threshold for CSR applicability to ₹10 crore from ₹5 crore and extending the deadline for transferring unspent CSR funds to 90 days from the current 30 days.

The report concludes that while CSR in India has matured and expanded significantly, there remains scope for better alignment with national development priorities, particularly in underserved regions, as the country progresses towards its Sustainable Development Goals and long-term growth targets.