India's corporate social responsibility (CSR) spending reached Rs 40,794 crore in FY 2024-25, growing at a compound annual growth rate (CAGR) of 15 per cent over the past decade, but funding remains concentrated in better-funded regions despite persistent development needs, a report by Sattva Consulting and India Data Insights said.
The eighth edition of the annual State of CSR in India report found that only 33.3 per cent of India's Sustainable Development Goal (SDG) indicators are on track, while 42.7 per cent show limited progress and 24 per cent are worsening.
Education, healthcare, livelihoods and skilling, environment, and rural development account for over 80 per cent of CSR funding. However, allocations remain concentrated within specific sub-sectors, leaving scope to address unmet needs and emerging priorities, the report said.
Geographic disparities are also significant. The five states with the highest multidimensional poverty receive just Rs 94 in CSR funding per capita, compared with Rs 455 in the five lowest-need states.
Bihar's Multidimensional Poverty Index is nearly five times that of Maharashtra, yet Maharashtra receives almost 19 times more CSR funding per capita. Between FY 2021-22 and FY 2024-25, Maharashtra received an additional Rs 3,381.9 crore in CSR funding, compared with Rs 292.5 crore for Bihar.
Although CSR funding in higher-need states and districts is beginning to increase, the report said the rise remains insufficient relative to development challenges. Redirecting an additional 5 per cent of FY 2024-25 CSR funding to high-need districts could triple the funding they currently receive, it added.
"CSR has brought scale and predictability to funding, but addressing India's persistent challenges requires greater agility in how this capital is deployed," said Srikrishna Sridhar Murthy, co-founder and CEO of Sattva Consulting.
The report recommended greater use of partnerships, innovation and technology to improve the impact of CSR spending and direct resources towards critical development gaps.