India Inc’s annual corporate social responsibility (CSR) spending saw a 13 per cent rise in 2022-23, reaching ₹29,988 crore, compared to ₹26,616 crore in the previous year. More than half of this expenditure was directed towards education and healthcare, Harsh Malhotra, Minister of State for Corporate Affairs, informed the Lok Sabha in a written reply.
Education emerged as the biggest area of focus , receiving an estimated ₹10,086 crore—nearly one-third of the total CSR outlay. Meanwhile, healthcare accounted for ₹6,830 crore, reflecting a growing commitment from corporates to social welfare initiatives.
Steady Growth in CSR Spending
Data shared by the Minister revealed a consistent upward trend in CSR contributions over the years. From ₹20,218 crore in 2018-19, India Inc’s CSR outlay has steadily increased, reaching ₹24,966 crore in 2019-20 and ₹26,211 crore in 2020-21. The sharp jump in 2022-23 underscores the private sector’s growing role in nation-building through social investments.
Under Section 135 of the Companies Act, 2013, companies meeting specified financial thresholds are required to allocate at least 2 per cent of their average net profits from the last three years towards CSR activities. The Companies (CSR Policy) Rules, 2014, empower corporate boards to undertake these initiatives independently or through registered trusts, societies, or government-backed entities.
Regulatory Oversight and Expanding CSR Reach
A key regulatory change implemented in 2021 mandates that all CSR implementing agencies be registered with the Ministry of Corporate Affairs (MCA). As of now, 87,578 such agencies have been registered under the MCA21 system. However, the government does not maintain data on CSR expenditure at the level of individual parliamentary constituencies or implementing agencies.
Schedule VII of the Companies Act lists eligible CSR activities, including poverty alleviation, healthcare, sanitation, education, rural sports, and initiatives to reduce social and economic inequalities. While companies are encouraged to prioritise local areas for their CSR efforts, they have flexibility to balance regional and national development priorities.
With corporate contributions to education and healthcare surpassing ₹16,800 crore in 2022-23, India Inc’s role in driving social impact continues to expand. As regulatory frameworks evolve and CSR commitments deepen, these investments are expected to play a crucial role in addressing socio-economic challenges across the country.
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