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India’s top-100 listed companies by market capitalisation spent a total of Rs 12,897 crore on CSR activities in FY24, reflecting a 29% increase from FY2022.
The oil and gas (refinery) sector led CSR in FY2024, with an average spend of Rs 538 crore per company, followed by private banks (Rs 368 crore) and iron & steel manufacturers (Rs 348 crore).
Authored By Sheetal Sharad:
Over the past decade, Corporate Social Responsibility (CSR) in India has undergone a remarkable evolution. What once began as a compliance requirement under the Companies Act has steadily matured into a strategic instrument for building a responsible business practice and giving back to the society. As India navigates complex socio-economic challenges and climate vulnerabilities, corporates are increasingly embracing CSR not merely as a checkbox exercise, but as a vehicle for ensuring impact.
The latest ICRA ESG report, ‘Beyond Compliance: CSR Leadership Among India’s Top 100 Companies’, presents a compelling narrative of this evolution. It offers deep insights into how India’s leading corporates are reimagining CSR — moving from a compliance — first mindset to strategic, impact-led investment that aligns closely with national priorities and global development goals.
From Obligation to Opportunity: The New Face of Corporate Responsibility
The data speaks volumes. In FY2024, India’s top-100 listed companies by market capitalisation spent a total of Rs 12,897 crore on CSR activities, reflecting a 29% increase from FY2022. This increase comes on the back of a 37% rise in average net profits, but what stands out is the fact that 16% of companies actually increased their CSR spending despite a decline in profits—an unequivocal signal of commitment that transcends mere compliance.
Even more encouraging, 73% of the companies surveyed fully utilised their CSR budgets, and nearly half (48%) exceeded the mandated two per cent spend. These statistics illustrate a maturing CSR ecosystem, driven by long-term vision, ethical responsibility, and an ambition to contribute meaningfully to India’s social development story.
Anchoring Impact: Priorities Aligned with the UN Sustainable Development Goals
As CSR matures, so too does the strategic alignment of initiatives with the United Nations Sustainable Development Goals (UN SDGs). Among India’s top corporates, SDG 4 (Quality Education) and SDG 3 (Good Health and Well-being) have emerged as dominant areas of focus, supported by 90 and 89 companies respectively in ICRA ESG’s sample.
Education, in particular, saw CSR spending rise from Rs. 6,719 crore in FY2022 to Rs. 12,134 crore in FY2024 — an extraordinary 81% increase. Healthcare allocations remained robust at Rs 7,151 crore, indicating strong, ongoing support for essential social infrastructure. Together, these causes account for the largest share of CSR spending, reflecting companies’ sustained investment in human capital and public health systems.
Beyond the obvious, growing attention is being paid to rural development, skilling, and livelihood enhancement—areas critical to long-term economic inclusivity. The report also notes a gradual rise in CSR allocations towards SDG 8 (Decent Work and Economic Growth), and SDG 13 (Climate Action), suggesting a broadening of perspective that transcends traditional domains.
Bridging the Regional Divide: Shifting Focus to Emerging Geographies
While Maharashtra and Gujarat continue to attract the lion’s share of CSR allocations — together accounting for over 25% of total spending — there is a marked shift towards emerging and underserved regions. Odisha, for instance, recorded an 85% growth in CSR inflows from FY2022 to FY2024, while Andhra Pradesh grew by 70%. These trends underscore a rising corporate intent to engage with geographies that historically received less attention but have high potential for leaving an impact.
An equally promising development is the surge in CSR spending within aspirational districts — areas identified by the government as lagging on key socio-economic indicators. CSR allocations to these districts rose 115% between FY2021 and FY2023, with over 100 of the 112 districts now touched by CSR interventions from at least one leading corporate. Companies such as Infosys, Tata Motors and Canara Bank have displayed exceptional leadership by operating CSR programmes in more than 100 aspirational districts, reinforcing the role of corporate India in driving equitable development.
Sectoral Standouts: A Look at the Leaders
An analysis of sectoral CSR expenditure reveals interesting patterns. The oil and gas (refinery) sector led the pack in FY2024, with an average spend of Rs 538 crore per company, followed by private banks (Rs 368 crore) and iron & steel manufacturers (Rs 348 crore). Tech majors, FMCG firms and NBFCs also demonstrated robust CSR performance, albeit with differing thematic priorities.
At the company level, HDFC Bank topped the chart with a CSR spend of Rs 945 crore, followed closely by Reliance Industries (Rs 900 crore), Tata Consultancy Services (Rs 827 crore) and ONGC (Rs 635 crore). These figures are well above their mandated spends, indicating a leadership stance on sustainability and social development.
Notably, 73% of all companies in the sample achieved full CSR budget utilisation, with several reporting over 100% usage — suggesting efficient deployment mechanisms and committed execution on-ground.
A Call for Diversification: Broadening the CSR Agenda
While education and health dominate CSR portfolios, there remains an urgent need to widen the lens. Areas such as water conservation, disaster relief, environmental sustainability, animal welfare and arts and culture remain underrepresented. SDG 16, which focuses on justice and strong institutions, also continues to see limited corporate alignment.
As CSR matures, diversification must become a strategic imperative. By exploring partnerships with civil society, leveraging government platforms, and deploying innovative financial models (such as social or impact bonds or blended finance), companies can ensure that neglected causes receive due attention. Further, as per the Ministry of Corporate Affairs’ latest guidelines, only verified non-profits can now execute CSR activities—adding a welcome layer of accountability, but also necessitating thoughtful collaboration and due diligence.
Towards a Purpose-Driven Future
India’s CSR journey is no longer confined to statutory adherence. It is a powerful tool for social transformation, capable of bridging opportunity gaps, driving equity, and enabling climate resilience. As the findings of ICRA ESG’s report suggest, the country’s leading corporates are increasingly recognising the intrinsic value of CSR—not merely as a moral obligation, but as a business imperative aligned with long-term sustainability. With rising stakeholder expectations and growing societal challenges, the road ahead calls for greater ambition, sharper focus, and unwavering integrity. CSR, in its truest form, must now serve as the conscience of corporate India.
(The author is the chief rating officer of ICRA ESG Ratings)
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