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India's CSR Spending Grows, but Poorer States Remain Underserved
Companies in India must spend some money on projects that help society.
This money can support schools, healthcare, sanitation, jobs, and villages.
India’s companies spent a record amount overall.
However, much of the money goes to places where many companies already operate.
Poorer states such as Bihar receive much less than wealthier corporate centers such as Maharashtra.
Companies may choose nearby projects because they are easier to manage and monitor.
The article says this can accidentally make regional inequality worse.
It suggests showing exactly where the money goes and what results it produces.
Bihar is presented as a test of whether CSR helps the people who need it most.
India’s corporate social responsibility spending reached a reported record of Rs 40,794 crore.
CSR funds are concentrated in corporate-heavy states such as Maharashtra, Karnataka, Gujarat, and Delhi.
Bihar received Rs 260.53 crore in 2023-24, compared with Maharashtra’s Rs 6,065.95 crore.
The article says existing corporate networks and infrastructure make urban projects easier to execute.
It recommends district-level disclosure, independent verification, and recognition for investment in underserved areas.
- Who
- Indian companies subject to the corporate social responsibility rules, along with communities and organizations receiving CSR funds.
- What
- CSR spending has grown substantially but is geographically concentrated, leaving poorer states such as Bihar with much less funding than states such as Maharashtra.
- Where
- Across India, with CSR spending concentrated in Delhi, Maharashtra, Karnataka, and Gujarat and relatively limited in Bihar.
- When
- In 2023-24, Bihar received Rs 260.53 crore and Maharashtra received Rs 6,065.95 crore; spending has increased since 2019-20.
- Why
- Companies often choose areas with existing offices, partners, infrastructure, and monitoring capacity, while the CSR framework lacks a mechanism to direct funds toward areas with the greatest need.
Targeted CSR Reform Advocates
Operational Feasibility Advocates
Where CSR money should go
Targeted CSR Reform Advocates
CSR funds should reach underserved states and districts where deficits in education, health, and rural development are greatest.
Operational Feasibility Advocates
Companies can reasonably prioritize areas near their factories, offices, staff, and established institutional partners.
How to correct regional imbalance
Targeted CSR Reform Advocates
District-level disclosures, beneficiary and outcome reporting, independent verification, and stronger investor scrutiny could make spending more equitable.
Operational Feasibility Advocates
The article does not argue for a compulsory state allocation formula, because centrally dictated CSR could reduce companies’ flexibility and responsiveness.
How performance should be judged
Targeted CSR Reform Advocates
Recognition and ESG ratings should reward companies that take on difficult projects in underserved districts, not only large or highly visible initiatives.
Operational Feasibility Advocates
Projects in familiar locations can reduce overheads, simplify monitoring, and improve companies’ understanding of local communities.
Key facts
- Record CSR spending
- Rs 40,794 crore, according to the latest government data cited.
- Bihar allocation
- Rs 260.53 crore in 2023-24.
- Maharashtra allocation
- Rs 6,065.95 crore in 2023-24.
- Per-person comparison
- About Rs 20 per person in Bihar versus roughly Rs 470 in Maharashtra.
- Relative gap
- The article describes Maharashtra’s per-person CSR spending as nearly 24 times Bihar’s.
- Bihar multidimensional poverty
- 33.76% in 2019-21, compared with about 14% nationally.
- Eligible CSR areas
- Education, healthcare, sanitation, livelihood promotion, and rural development.









