Title: India Inc’s CSR Contributions Cross ₹30,000 Cr Mark: Red Lab
India Inc’s commitment to corporate social responsibility (CSR) has reached a new milestone, with companies in the country spending nearly ₹30,000 crore on CSR initiatives in FY24. This significant increase of 16% from the previous year is a testament to the growing importance of CSR in India’s corporate landscape. According to a report by Red Lab, over 61% of these funds came from Maharashtra and Delhi-based firms, highlighting the significant role that these states play in driving CSR efforts.
The report also highlights the sectors that received the most support from India Inc’s CSR initiatives. Education, healthcare, and rural development emerged as the top three recipients of CSR funds, with a significant portion of the funds allocated towards education and healthcare. This is not surprising, given the pressing need for quality education and healthcare infrastructure in the country.
However, despite the significant increase in CSR spending, there is a concern that only 3% of the funds reached aspirational districts. Aspirational districts are those that have been identified by the government as being in need of special attention and support to bridge the development gap with other parts of the country. This disparity is a stark reminder of the ongoing regional disparities in India, with certain regions and districts lagging behind in terms of development.
The report’s findings are based on an analysis of CSR spends by India’s top 1,000 listed companies in FY24. The data reveals that while there has been an increase in CSR spending overall, there is still a significant gap between the CSR spends of different regions and sectors.
One of the key takeaways from the report is the dominance of Maharashtra and Delhi-based firms in CSR spends. These two states accounted for over 61% of total CSR spends, with companies from these states allocating a significant portion of their CSR budgets towards education, healthcare, and rural development.
The report also highlights the significant role that the Indian government is playing in promoting CSR. The government’s guidelines on CSR, which came into effect in 2014, require listed companies to spend at least 2% of their average net profits over the past three years on CSR initiatives. This has led to a significant increase in CSR spending by Indian companies, with many companies going beyond the minimum requirements to make a greater impact.
The report’s findings are a testament to the growing importance of CSR in India’s corporate landscape. As companies continue to prioritize CSR, we can expect to see even more innovative and impactful initiatives in the future.
India Inc’s CSR Contributions Cross ₹30,000 Cr Mark: Red Lab
India Inc spent nearly ₹30,000 crore on CSR in FY24, a 16% rise from last year, according to Red Lab. Over 61% of funds came from Maharashtra and Delhi-based firms. Education, healthcare, and rural development received the most support, but only 3% of funds reached aspirational districts, highlighting ongoing regional disparities.
https://thecsrjournal.in/india-incs-csr-contributions-cross-rs-30000-crore-mark-red-lab/
