Introduction

The introduction of mandatory Corporate Social Responsibility under Section 135 of the Companies Act in 2013 marked a significant shift in India’s approach to corporate accountability. After nearly a decade of implementation, data from the National CSR Portal reveals distinct patterns in spending trends, sectoral allocations, and geographic distribution that merit examination.

Aggregate CSR Expenditure Analysis

India’s CSR expenditure has shown consistent and significant growth over the past nine years. Initial spending of ₹10,065.93 crore in FY 2014 rose to ₹29,987.93 crore by FY 2022—marking a cumulative increase of 198% and a compound annual growth rate (CAGR) of 13.9%.

The growth trajectory reflects distinct phases. The initial compliance phase (2014–2015) saw a sharp 44.3% jump to ₹14,517.20 crore as companies responded to the newly introduced CSR mandate. After a brief dip in 2016, spending rebounded in 2017 with a 19.3% increase, reaching ₹17,098.18 crore.

From 2017 to 2019, CSR spending grew steadily, culminating at ₹24,965.80 crore. Notably, even during the COVID-19 period, CSR allocations continued to grow in both 2020 and 2021, underscoring the growing institutionalization of CSR. In 2022, with the economy recovering, CSR saw another boost of 12.7%.

This steady upward trend—even through economic disruptions—suggests that CSR in India is no longer just about regulatory compliance. Companies are increasingly viewing CSR as a regular part of their operations, with more consistent and planned investments. The post-pandemic recovery has reinforced this shift, pointing to a more established culture of corporate social engagement that is likely to continue in the years ahead.

Sectoral Allocation Patterns

Sectoral analysis reveals distinct priorities in CSR resource allocation. Education consistently receives the largest proportion of CSR funds, with expenditure increasing from ₹2,589.42 crore in 2014 to ₹10,085.78 crore in 2022. This represents approximately 33% of total CSR expenditure in 2022, indicating sustained corporate investment in human capital development.

Healthcare emerges as the second-largest beneficiary sector, with spending patterns reflecting responsiveness to national health crises. Healthcare CSR allocation increased fourfold between 2014 and 202. Peak spending occurred in 2021 at ₹7,816.29 crore, subsequently moderating to ₹6,830.60 crore in 2022.

Additional sectors receiving significant CSR investment include Rural Development, Training to Promote Sports, Women Empowerment, and Livelihood Enhancement.

Geographic Distribution Analysis

The geographic distribution of CSR expenditure exhibits pronounced concentration patterns. Maharashtra maintains the highest absolute CSR spending levels. This dominance reflects Maharashtra’s position as India’s financial and industrial hub, hosting numerous large corporations subject to CSR mandates. The top five CSR-recipient states—Maharashtra, Karnataka, Gujarat, Tamil Nadu, and Delhi—represent India’s primary industrial corridors and commercial centers, with annual expenditures ranging from ₹757 to ₹3,291 crores. Regional analysis indicates that western and southern Indian states collectively attract the majority of CSR investments.

However, while Maharashtra leads in absolute CSR spending (₹3,000+ crores annually), its low growth rate (24%) suggests stagnation in new industrial activity. This mirrors broader economic trends—The Federal notes Maharashtra’s GDP share has fallen from 15% to 13.3%, amid political uncertainty and missed opportunities in sectors like EVs and electronics.^[1] In contrast, Karnataka, Tamil Nadu, and Gujarat combine high CSR volumes with rapid growth (394%–676%).

The resource-rich states of eastern India show mixed CSR performance despite the presence of significant mining operations and heavy industries. Odisha, with its substantial mineral reserves and steel industry, ranks ninth in average CSR spending at ₹593.22 crores annually, but its growth rate of 147% remains modest. Chhattisgarh sees lower average spending at ₹256.68 crores and a growth rate of 108%. Jharkhand stands out with only ₹163.86 crores in average CSR and 101% growth.

Northeastern states display high CSR growth, but from very low bases. Assam leads with ₹259.14 crores and 125% growth, while smaller states like Arunachal Pradesh, Tripura, and Manipur report dramatic growth rates, though from initial spending of under ₹30 crores annually. These trends reflect the region’s historical isolation, limited industrial development, and years of insurgency, all of which have constrained corporate presence and philanthropic flows.^[2] The recent growth likely stems from targeted efforts to attract industry and encourage CSR engagement. While the momentum is promising, overall CSR volumes remain modest, and sustained, region-specific strategies will be needed to bridge these long-standing gaps.

Implications and Observations

The data suggests CSR has evolved beyond regulatory compliance to become a more systematic component of corporate operations. Consistent growth patterns and pandemic-period resilience indicate growing integration of social investment into standard corporate practices.   While the rise in CSR spending in the Northeast is encouraging, overall geographic distribution remains uneven. CSR in India has often been criticized for widening regional disparities, as already-developed states continue to benefit more due to their corporate density and readiness to absorb funding.

Moreover, CSR data must be read with caution. Spending is often reported at company headquarters, and the lack of granular, project-level information makes it difficult to assess where and how funds are actually being used. Sector-wise allocations are also uneven, with some areas—such as education and health—receiving disproportionate attention while others remain underfunded. To better understand CSR’s true impact, further analysis is needed—especially around implementation geographies, sectoral focus, and beneficiary outcomes.

Note:
The analysis relies on CSR expenditure data from the National CSR Portal standardized by the NDAP covering the fiscal years 2014 to 2022. However, data for certain union territories—specifically Ladakh and Lakshadweep—is unavailable for multiple years. There is no data for Leh and Ladakh for the period 2014 to 2020, and Lakshadweep’s data is unavailable for 2014 and 2019. The analysis should be read in light of these limitations.

References

National Data & Analytics Platform (NDAP). (2025, May 11). State/UT-wise Corporate Social Responsibility expenditure FY 2014 – FY 2022. https://ndap.niti.gov.in/dataset/3297

National Data & Analytics Platform (NDAP). (2025, May 11). Development sector-wise Corporate Social Responsibility (CSR) expenditure. https://ndap.niti.gov.in/dataset/3298

Thadikaran, G. B., Chellaswamy, K. P., & Nain, I. (2021, April). Corporate Social Responsibility and spatial inequality in India. Turkish Journal of Computer and Mathematics Education (TURCOMAT), 12(10). https://doi.org/10.17762/turcomat.v12i10.5492

Patgiri, R., & Kazi, S. S. (2021, August). Policy brief: Bridging the CSR divide in North East India – A decade of Corporate Social Responsibility and beyond (2011–2020). Council for Social and Digital Development & North East Development Foundation. https://nedfindia.org/wp-content/uploads/2021/10/NE-CSR-Policy-Report_ONLINE.pdf

Author: Yashasvini Gupta, Former Research Associate, Development Solutions.