HDFC, Reliance Industries top CSR contributors in India: CareEdge  

Corporate Social Responsibility (CSR) in India saw 12.8% rise in FY24 over previous fiscal with HDFC Bank and Reliance Industries top corporate contributors, according to CareEdge evaluation

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

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

Allocations remain concentrated in Education (34.76%) and Healthcare (20.48%), followed by environmental sustainability, rural development and livelihood enhancement, areas aligning with national priorities and corporate 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 leading recipient states, with Maharashtra alone attracting over 17% of the total funds.

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

This shift reflects stronger compliance and a growing strategic commitment to CSR, thereby, indicating that an increasing majority of corporates now view CSR as a value-driven investment rather than merely a statutory obligation.

The introduction of Companies Act, 2013 brought a major transformation in India’s corporate philanthropy, making Corporate Social Responsibility (CSR) a mandatory obligation for companies exceeding specified financial thresholds.

As per law, any company with a net worth of more than Rs 500 crore, or a turnover of more than Rs 1,000 crore, or a net profit of more than Rs 5 crore in the preceding financial year must allocate at least 2% of its average net profits from the last three years towards CSR activities.