CSR Spending Witnessed 16% Rise in FY 23-2024

In a noteworthy development in corporate governance and social responsibility, CSR (Corporate Social Responsibility) spending by listed Indian companies has surged by 16% in FY 2023-24. This increase follows a period of stagnant expenditure and aligns with a rise in the average net profits of these firms. The CSR law, in effect since 2014, requires eligible companies to invest in social initiatives like education, healthcare, and environmental sustainability. However, calls have now emerged to revisit the thresholds for mandatory CSR compliance in light of the doubling of corporate profits since the law’s inception.

Why in the News?

CSR spending by listed Indian companies rose 16% to ₹17,967 crore in FY 2023-24, driven by improved profits. HDFC Bank topped the list with the highest CSR spend, followed by Reliance Industries, TCS, and ONGC.

CSR Law Overview

• Came into effect: April 2014
• Mandates companies with,
• Net worth ≥ ₹500 crore, or
• Turnover ≥ ₹1,000 crore, or
• Net profit ≥ ₹5 crore to spend 2% of average net profits (last 3 years) on CSR.

CSR Expenditure Highlights (FY 2023–24)

Total CSR spend: ₹17,967 crore (↑16% from ₹15,524 crore in 2022–23)

Top Spenders

• HDFC Bank: ₹945.31 crore
• Reliance Industries: ₹900 crore
• TCS: ₹827 crore
• ONGC: ₹634.57 crore
• Total Companies Considered: 1,394
• Companies that spent: 1,367 (98%)
• Did not spend: 27 companies
• Required amount: ₹18,309 crore
• Shortfall transferred to Unspent CSR Account: ₹2,329 crore

Profit Trends and Suggestions

• Avg. net profit (1,394 companies): ₹9.62 lakh crore
• Suggestion by Pranav Haldea (MD, PRIME Database):
• Revise CSR thresholds upwards to exclude smaller companies
• Reflect the improved ease of doing business and higher corporate profits

Sector-wise Allocation

• Education: ₹1,104 crore (Highest share)
• Healthcare: ₹720 crore
• Environmental Sustainability: Increased 54%
• National Heritage: Increased 5%
• Slum Development: Decreased 72%
• Rural Development: Decreased 59%
• Armed Forces Veterans: Decreased 52%

PSU Contribution

• PSUs’ total CSR spend: ₹3,717 crore
• Total PSUs that spent: 66

Summary/Static	Details
Why in the news?	CSR Spending Witnessed 16% Rise in FY 23-2024
Total CSR Spend (FY24)	₹17,967 crore (↑16%)
Highest Spender	HDFC Bank – ₹945.31 crore
CSR Law Effective Since	April 2014
Mandatory CSR Spend	2% of avg. net profit (last 3 years)
Total Companies Considered	1,394
Unspent Transferred to Account	₹2,329 crore
Most Funded Sector	Education – ₹1,104 crore
Fastest Growing CSR Sector	Environmental Sustainability