CSR Spending in India Soars 16% in FY 2023–24 After 3-Year Stagnation

India’s listed companies have significantly increased their Corporate Social Responsibility (CSR) expenditures, recording a 16% growth in FY 2023–24 to reach ₹17,967 crore, up from ₹15,524 crore in the previous year. This sharp rise in CSR allocations coincides with an 18% surge in the average net profits of these companies, marking a rebound after three years of stagnant growth.

Record-Breaking Rise After Years of Flat Growth

From ₹14,751 crore in FY 2019–20 to ₹15,524 crore in FY 2022–23, CSR spending had plateaued. However, this year’s notable jump is driven by an 18% increase in average three-year net profits, the benchmark for calculating the statutory 2% CSR contribution.

According to the data, “the average three-year net profit of 1,394 NSE-listed companies reached ₹9.62 lakh crore in FY 2023–24, up from ₹8.14 lakh crore in the previous year.” Based on this, the mandated CSR spend was ₹18,309 crore, with companies managing to spend ₹17,967 crore. The shortfall was largely attributed to “approximately ₹2,329 crore that companies transferred to their Unspent CSR Accounts for future utilization.”

Top CSR Contributors in FY 2023–24

Banking and Energy Giants Take the Lead

Leading the CSR charge in FY 2023–24 was HDFC Bank, contributing ₹945.31 crore, up from ₹820.89 crore last year. Following closely was Reliance Industries with ₹900 crore, a rise from ₹744 crore in FY 2022–23. TCS and ONGC rounded out the top four contributors.

Top 10 CSR Spenders by Contribution

1. HDFC Bank: ₹945.31 crore

2. Reliance Industries: ₹900 crore

3. Tata Consultancy Services (TCS): ₹827 crore

4. Oil and Natural Gas Corporation (ONGC): ₹634.57 crore

5. Tata Steel: ₹580.02 crore

6. ICICI Bank: ₹518.87 crore

7. Indian Oil Corporation (IOC): ₹457.71 crore

8. Infosys: ₹455.67 crore

9. ITC: ₹404.05 crore

10. Power Grid Corporation: ₹330.48 crore

Together, these top 10 companies accounted for nearly a third of the total CSR spending by all NSE-listed firms in FY 2023–24, demonstrating the outsized role played by India’s largest corporates.

Public Sector CSR Contributions Grow by 19%

Public Sector Undertakings (PSUs) also ramped up their CSR initiatives. “A total of 66 PSUs spent ₹3,717 crore, up from ₹3,136 crore spent by 56 PSUs in the previous fiscal year.” This highlights the vital contribution of government-owned enterprises to social development.

Sectoral Allocation – Where the CSR Money Went

Education and Healthcare Continue to Dominate

For yet another year, education and healthcare emerged as the top priorities. Education received ₹1,104 crore, while healthcare initiatives attracted ₹720 crore in CSR funding. This follows the pattern from FY 2022–23, which saw education receive ₹1,211 crore and healthcare ₹825 crore.

Sustainability Sees Record Gains

Environmental sustainability recorded the largest jump in funding – a 54% rise from the previous year. This trend reflects the rising awareness among corporates about climate challenges and their responsibilities toward sustainable practices.

Declining Support for Some Sectors

Certain sectors saw a steep fall in CSR allocation. “Slum development projects saw the steepest decline of 72%, followed by rural development initiatives (59% decrease) and programs for armed forces veterans (52% reduction).” Disaster management remained an underfunded area.

Compliance and Governance Trends Remain Strong

Near-Universal Adherence to CSR Norms

Of the 1,394 eligible companies, 1,367 (98%) complied with CSR spending norms in FY 2023–24, matching the compliance rate of the previous year. Notably, “681 companies (49%) exceeded their prescribed CSR spending, while 418 companies (30%) spent exactly the mandated amount.” Shortfalls in other firms were attributed to multi-year projects and future fund allocations.

Strong CSR Governance Mechanisms in Place

As required by law, companies spending more than ₹50 lakh annually on CSR must form a dedicated committee with at least three board members, including one independent director. In FY 2023–24, 990 out of 1,028 such companies complied, and “503 companies appointed more than the minimum required three members.”

Future of CSR in India – Time for Threshold Revisions?

With average corporate profits more than doubling over the past decade, some experts believe the CSR eligibility thresholds should be re-evaluated. “It is also now time that the Government considers revising these thresholds upwards given the passage of time and ‘ease of doing business’,” said Pranav Haldea, Managing Director of PRIME Database Group.

As per his assessment, “the average three-year net profit of NSE-listed companies has more than doubled from ₹4.18 lakh crore in 2014–15 to ₹9.62 lakh crore in 2023–24.” Adjusting thresholds could help exclude smaller companies while ensuring larger entities continue to contribute significantly to India’s development goals.

Conclusion: Rising Spend, Emerging Challenges

The 16% increase in CSR spending in FY 2023–24 signals a renewed sense of corporate responsibility across India Inc. With education, healthcare, and sustainability as key areas of focus, companies are realigning their social efforts to current national and global needs.

However, the decline in funding for rural and disaster-relief sectors raises questions about balanced allocation. Going forward, the challenge will not only be increasing spend but ensuring impactful and equitable outcomes.