6 years of CSR in India – INR 92,605 Crore and counting

6 years of CSR in India – INR 92,605 Crore and counting

Published on :- July 9th, 2021

In 2014, India became the first country in the world to mandate CSR spend through legislative action. The legal mandate on CSR applies to companies that have:
  • Net worth of INR 500 Crore or more, OR
  • Annual turnover of INR 1000 Crore or more, OR
  • Net profit of INR 5 Crore or more.

Companies thus coming under the CSR mandate, have to spend at least 2% of their average net profits of the preceding three years on social impact programmes in every financial year.

In the first six years of implementation of this law, over INR 92605 crore has been cumulatively spent by nearly 30000 companies that come under the CSR ambit.

While the numbers have gone up, the spending patterns seem to be extraordinarily sticky. Here is a summary of top trends:

The pattern remains similar when we dig deeper. Regions with better corporate presence receive a greater share of the CSR pie.

This spending pattern leads to an unfavourably skewed distribution of CSR funds, with underdeveloped regions with low income levels receiving the least of CSR support.

In terms of the sectors too, the distribution of CSR is heavily skewed in favor of select sectors – education being the overwhelming favourite.

Another interesting point to note is the choice of the mode of implementation. The proportion of CSR projects being implemented with non-profit partners differs across states.

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