Five high-poverty states receive just Rs 94 per capita, against Rs 455 in low-need states.
Chennai: India’s corporate social responsibility (CSR) spending reached Rs 40,794 crore in FY25. However, poor states are receiving a meagre share of this spending.
CSR spending grew at a compound annual growth rate (CAGR) of 15% over the past decade to Rs 40,794 crore. About Rs 2.6 lakh crore has been spent on CSR since 2014.
However, CSR funding remains concentrated in established sectors and better-funded geographies, finds Sattva Consulting and India Data Insights.
Education, healthcare, livelihoods and skilling, environment, and rural development together account for over 80 per cent of CSR funding. While these sectors represent core development needs, a deeper analysis reveals that funding is concentrated within specific sub-sectors.
Geographic disparities further illustrate the challenge. 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.
The top five states that receive CSR money are Maharashtra, Gujarat, Karnataka, Tamil Nadu and Delhi. Bihar’s Multidimensional Poverty Index (MPI) is nearly five times that of Maharashtra. Yet, Maharashtra receives nearly 19 times more CSR funding per capita.
Between FY2021–22 and FY2024–25, Maharashtra received an additional Rs 3,381.9 crore in CSR funding, compared with Rs 292.5 crore in Bihar. Himachal Pradesh, Jharkhand, Orissa and Madhya Pradesh are some of the states that receive meagre funding.
While CSR funding in higher-need states and districts is beginning to grow, the increase is yet to translate into funding commensurate with the scale of development challenges. Redirecting an additional 5% of FY2024–25 CSR funding to high-need districts would triple the funding they receive today.
