{"id":46404,"date":"2025-04-28T06:44:48","date_gmt":"2025-04-28T01:14:48","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=46404"},"modified":"2025-05-17T21:54:06","modified_gmt":"2025-05-17T16:24:06","slug":"csr-spending-in-india-grows-16-in-fy24","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/csr-spending-in-india-grows-16-in-fy24\/","title":{"rendered":"CSR Spending in India Grows 16% in FY24: Key Trends and Leading Contributors"},"content":{"rendered":"<h2>What\u2019s in Today\u2019s Article?<\/h2>\n<ul>\n<li>Corporate Social Responsibility Latest News<\/li>\n<li>About Corporate Social Responsibility:<\/li>\n<li>Rise in CSR Spending in FY24<\/li>\n<li>Leading CSR Contributors<\/li>\n<li>Sectoral Allocation of CSR Funds<\/li>\n<li>Trends in Compliance and Governance<\/li>\n<li>Call for Revising CSR Thresholds<\/li>\n<li>Future Outlook<\/li>\n<li>CSR Spending India FY24 FAQs<\/li>\n<\/ul>\n<h2>Corporate Social Responsibility Latest News<\/h2>\n<ul>\n<li>Funds spent by listed companies on Corporate Social Responsibility (CSR) rose by 16 per cent to Rs 17,967 crore in 2023-24, in comparison to 2022-23.<\/li>\n<\/ul>\n<h2>About Corporate Social Responsibility:<\/h2>\n<ul>\n<li>Corporate Social Responsibility (CSR) has become a central pillar of India&#8217;s corporate governance framework.\u00a0<\/li>\n<li>Enacted through the Companies Act, 2013 and enforced from April 2014, CSR mandates eligible companies to spend at least <strong>2% of their average net profits<\/strong> over the preceding three years on socially impactful initiatives.\u00a0<\/li>\n<li>Companies with a <strong>net worth of \u20b9500 crore<\/strong>, <strong>turnover of \u20b91,000 crore<\/strong>, or <strong>net profit of \u20b95 crore<\/strong> are obligated to undertake CSR activities.<\/li>\n<li><strong>The intent behind the CSR mandate is twofold<\/strong>: to ensure that businesses contribute meaningfully to society, and to embed social responsibility as an integral part of corporate strategy.\u00a0<\/li>\n<li>Over the years, CSR in India has expanded to include areas like education, healthcare, rural development, environmental sustainability, and cultural heritage.<\/li>\n<li>While compliance levels have consistently improved, recent trends suggest an evolving landscape where corporates are increasingly aligning their CSR strategies with sustainable development goals and national priorities.<\/li>\n<\/ul>\n<h2>Rise in CSR Spending in FY24<\/h2>\n<ul>\n<li>In the financial year 2023-24, India witnessed a <strong>16% surge in CSR spending<\/strong>, with listed companies investing a total of <strong>\u20b917,967 crore<\/strong>, up from \u20b915,524 crore in FY23.\u00a0<\/li>\n<li>This significant rise mirrors the <strong>18% increase in average three-year net profits<\/strong>, which grew to \u20b99.62 lakh crore from \u20b98.14 lakh crore.<\/li>\n<li>As per the CSR mandate, companies were required to spend \u20b918,309 crore.\u00a0<\/li>\n<li>The slight shortfall between required and actual spending was due to <strong>\u20b92,329 crore<\/strong> being transferred to <strong>Unspent CSR Accounts<\/strong> for future utilization.<\/li>\n<li>This increase in spending came after three years of relatively flat growth, signalling a strong corporate commitment towards social welfare, driven by regulatory push and profit expansion.<\/li>\n<\/ul>\n<h2>Leading CSR Contributors<\/h2>\n<ul>\n<li>The top CSR spenders in FY24 were among India\u2019s largest and most influential corporates:\n<ul>\n<li><strong>HDFC Bank<\/strong>: \u20b9945.31 crore<\/li>\n<li><strong>Reliance Industries<\/strong>: \u20b9900 crore<\/li>\n<li><strong>Tata Consultancy Services (TCS)<\/strong>: \u20b9827 crore<\/li>\n<li><strong>Oil and Natural Gas Corporation (ONGC)<\/strong>: \u20b9634.57 crore<\/li>\n<li><strong>Tata Steel<\/strong>: \u20b9580.02 crore<\/li>\n<li><strong>ICICI Bank<\/strong>: \u20b9518.87 crore<\/li>\n<li><strong>Indian Oil Corporation (IOC)<\/strong>: \u20b9457.71 crore<\/li>\n<li><strong>Infosys Ltd<\/strong>: \u20b9455.67 crore<\/li>\n<li><strong>ITC Ltd<\/strong>: \u20b9404.05 crore<\/li>\n<li><strong>Power Grid Corporation of India<\/strong>: \u20b9330.48 crore<\/li>\n<\/ul>\n<\/li>\n<li>These ten companies together contributed a significant portion of the total CSR expenditure, reinforcing the trend that large corporates are the key drivers of CSR activities in India.<\/li>\n<\/ul>\n<h2>Sectoral Allocation of CSR Funds<\/h2>\n<ul>\n<li>CSR funds were predominantly directed towards key societal needs:\n<ul>\n<li><strong>Education<\/strong> remained the top priority, attracting \u20b91,104 crore.<\/li>\n<li><strong>Healthcare<\/strong> followed closely, receiving \u20b9720 crore.<\/li>\n<\/ul>\n<\/li>\n<li>Notably, spending on <strong>environmental sustainability<\/strong> saw the steepest increase, with a <strong>54% growth<\/strong> compared to the previous year.\u00a0<\/li>\n<li>Meanwhile, areas like <strong>slum development<\/strong> (-72%), <strong>rural development<\/strong> (-59%), and <strong>armed forces veterans\u2019 welfare<\/strong> (-52%) witnessed significant declines.<\/li>\n<li>This sectoral shift indicates a growing awareness and responsiveness among corporates towards environmental challenges and the sustainable development agenda.<\/li>\n<\/ul>\n<h2>Trends in Compliance and Governance<\/h2>\n<ul>\n<li>Corporate compliance with CSR norms continued to remain robust:\n<ul>\n<li><strong>98%<\/strong> of the 1,394 eligible companies fulfilled their CSR obligations.<\/li>\n<li>Around <strong>49%<\/strong> of the companies exceeded their mandated spending, reflecting a proactive approach.<\/li>\n<li>Only <strong>259 companies<\/strong> fell short of the spending requirement, mainly due to multi-year project planning.<\/li>\n<li>Public Sector Undertakings (PSUs) also enhanced their contribution, with <strong>66 PSUs<\/strong> spending <strong>\u20b93,717 crore<\/strong>, marking a <strong>19% increase<\/strong> from the previous year.<\/li>\n<\/ul>\n<\/li>\n<li>Governance around CSR has also improved. Companies spending over \u20b950 lakh must form a <strong>CSR Committee<\/strong> comprising at least three directors, including one independent director.\u00a0<\/li>\n<li>Among the 1,028 companies mandated to set up committees, <strong>990 had fully compliant structures<\/strong>.<\/li>\n<\/ul>\n<h2>Call for Revising CSR Thresholds<\/h2>\n<ul>\n<li>Given the significant rise in average corporate profits over the past decade, experts have called for a <strong>revision of CSR eligibility thresholds<\/strong>.\u00a0<\/li>\n<li>The original thresholds were set when the average three-year net profit was \u20b94.18 lakh crore; now it has more than doubled to \u20b99.62 lakh crore.\u00a0<\/li>\n<li>Revising these limits would help focus CSR mandates on larger entities and ease regulatory burdens on smaller companies.<\/li>\n<\/ul>\n<h2>Future Outlook<\/h2>\n<ul>\n<li>As India&#8217;s economy grows, CSR is expected to evolve from being a compliance obligation to a strategic pillar for brand building, social impact, and stakeholder trust.\u00a0<\/li>\n<li>Emerging focus areas are likely to include:\n<ul>\n<li><strong>Climate change mitigation<\/strong><\/li>\n<li><strong>Digital inclusion<\/strong><\/li>\n<li><strong>Skilling for the future workforce<\/strong><\/li>\n<li><strong>Healthcare innovations<\/strong><\/li>\n<\/ul>\n<\/li>\n<li>Greater integration of CSR initiatives with corporate business strategies and national development programs will further enhance their effectiveness and impact.<\/li>\n<\/ul>\n<h2>CSR Spending India FY24 FAQs<\/h2>\n<p><strong>Q1.<\/strong> How much did Indian companies spend on CSR activities in FY24?<\/p>\n<p><strong>Ans.<\/strong> Indian listed companies spent \u20b917,967 crore on CSR activities in FY24.<\/p>\n<p><strong>Q2.<\/strong> Which companies led CSR spending in FY24?<\/p>\n<p><strong>Ans.<\/strong> HDFC Bank, Reliance Industries, and TCS were the top three CSR spenders.<\/p>\n<p><strong>Q3. <\/strong>Which sectors received the highest CSR funding?<\/p>\n<p><strong>Ans.<\/strong> Education and healthcare were the leading sectors in CSR funding.<\/p>\n<p><strong>Q4.<\/strong> What was the compliance rate for CSR obligations in FY24?<\/p>\n<p><strong>Ans.<\/strong> 98% of eligible companies met their CSR spending obligations.<\/p>\n<p><strong>Q5.<\/strong> Why is there a demand to revise CSR thresholds?<\/p>\n<p><strong>Ans. <\/strong>Rising corporate profits suggest that revising thresholds could ease the burden on smaller companies.<\/p>\n<p>\n<strong>Source: <\/strong><a href=\"https:\/\/indianexpress.com\/article\/business\/companies\/csr-spend-listed-firms-record-16-rise-to-rs-17967-crore-in-previous-fiscal-9969404\/\" target=\"_blank\" rel=\"nofollow noopener\">IE<\/a> | <a href=\"https:\/\/www.financialexpress.com\/business\/industry\/top-10-csr-spenders-in-fy24-hdfc-bank-reliance-at-the-forefront-check-full-list-here\/3824734\/\" target=\"_blank\" rel=\"nofollow noopener\">FE<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>India\u2019s CSR spending grew 16% to \u20b917,967 crore in FY24, led by HDFC Bank, Reliance, and TCS. Explore key CSR trends, sectoral focus, and compliance insights.<\/p>\n","protected":false},"author":5,"featured_media":46405,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18],"tags":[],"class_list":{"0":"post-46404","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-mains-current-affairs","8":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/46404","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=46404"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/46404\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/46405"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=46404"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=46404"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=46404"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}