India’s companies mobilize billions through CSR law
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Indian companies have collectively spent Rs 2.6 lakh crore (approximately $31.25 billion USD) on Corporate Social Responsibility (CSR) initiatives over the past decade.
In 2014, India enacted a law requiring companies with significant net worth, turnover, or profit to spend 2 percent of their net profits on CSR projects. This has created a large pool of private funding for development. Recent data shows companies contributed Rs 40,794 crore in 2024-25, supporting 72,000 projects across the country.
While Maharashtra, Gujarat, Karnataka, and Delhi received over Rs 20,000 crore of these funds, the distribution of money sometimes prioritizes company locations over areas with the greatest need. Experts suggest the focus should shift from simply spending the required amount to maximizing the impact of CSR funds. To improve outcomes, the author proposes three reforms. First, they recommend strengthening outcome indicators alongside current spending measurements. Second, they urge companies to collaborate on longer-term, strategic interventions instead of fragmented projects.
Finally, they suggest companies leverage their expertise and resources to support initiatives aligned with their core business competencies, increasing the scalability and impact of each investment.
