New Delhi: India’s corporate social responsibility (CSR) spending reached Rs 40,794 crore in FY 2024–25, but the money is not consistently reaching the regions and development areas facing the greatest challenges, according to the eighth edition of the State of CSR in India report.
The report, prepared by Sattva Consulting and India Data Insights, examines corporate spending alongside development indicators to assess whether CSR funding is reaching areas where it is most needed.
The findings come as India’s progress towards the 2030 Sustainable Development Goals (SDGs) remains uneven. Only 33.3% of indicators are on track, while 42.7% show limited progress and 24% are worsening.
CSR Funding Concentrated in Five Major Sectors
Education, healthcare, livelihoods and skilling, environment, and rural development together account for more than 80% of CSR spending.
While these sectors address major development needs, the report finds that funding is also concentrated within particular sub-sectors. This leaves scope for companies to direct more resources towards overlooked issues and emerging priorities within their existing CSR portfolios.
The report argues that companies need to look beyond broad sector allocations and identify specific development gaps and the factors behind them.
High-Poverty States Receive Less CSR Funding
The disparity is particularly visible in the geographical distribution of CSR spending. The five states with the highest multidimensional poverty receive an average of just Rs 94 per capita in CSR funding, compared with Rs 455 in the five lowest-need states.
The report highlights the contrast between Bihar and Maharashtra. Bihar’s Multidimensional Poverty Index (MPI) is nearly five times that of Maharashtra, yet Maharashtra receives almost 19 times more CSR funding per capita.
The gap has also widened in absolute funding terms. Between FY 2021–22 and FY 2024–25, Maharashtra received an additional Rs 3,381.9 crore in CSR funding, while the increase in Bihar stood at Rs 292.5 crore.
Although funding for higher-need states and districts has started to rise, the report says the increase remains insufficient relative to the scale of their development challenges.
A 5% Shift Could Triple Funding for High-Need Districts
The analysis identifies scope for companies to make a measurable difference by redirecting a relatively small share of their existing CSR budgets.
According to the report, allocating an additional 5% of FY 2024–25 CSR spending to high-need districts would triple the funding these districts receive currently.
The recommendation points to the potential impact of changing how existing CSR funds are distributed, rather than relying only on an increase in overall spending.
Sattva Calls for a More Flexible Approach
Srikrishna Sridhar Murthy, Co-founder and CEO of Sattva Consulting, said CSR funding had brought scale and predictability to development efforts, but companies needed to be more responsive in deciding where their money could make the greatest difference.
He said corporate philanthropy should continually reassess funding priorities and focus on critical gaps in regions where progress has stalled and other sources of capital are less likely to reach.
The report recommends that companies use partnerships, innovation and technology to extend the impact of CSR investments. Such approaches, it argues, can help deliver development outcomes that go beyond what funding alone can achieve.
