India Inc’s annual corporate social responsibility (CSR) spending saw a 13 per cent rise in 2022-23. More than half of this expenditure was directed towards education and healthcare, Harsh Malhotra, Minister of State for Corporate Affairs, informed the Lok Sabha in a written reply.
- Total CSR expenditure in 2022-23: ₹29,988 crore (up 13% from ₹26,616 crore in 2021-22).
- Education and healthcare received over 50% of total spending.
- Education: ₹10,086 crore (~33% of total CSR outlay).
- Healthcare: ₹6,830 crore (significant focus on social welfare).
Trends in CSR Expenditure:
- 2018-19: ₹20,218 crore
- 2019-20: ₹24,966 crore
- 2020-21: ₹26,211 crore
- 2021-22: ₹26,616 crore
- 2022-23: ₹29,988 crore
This consistent increase in CSR spending highlights corporates’ growing commitment to nation-building through social investments.
Legal Framework for CSR in India:
- Mandated under Section 135 of the Companies Act, 2013:
- Companies meeting certain financial thresholds must allocate at least 2% of their average net profits from the last three years to CSR.
- Companies can execute CSR projects independently or through registered trusts, societies, or government-backed entities.
- Key Regulatory Change (2021):
- All CSR implementing agencies must register with the Ministry of Corporate Affairs (MCA).
- Schedule VII of the Companies Act lists eligible CSR activities, including:
- Poverty alleviation
- Healthcare & sanitation
- Education
- Rural sports
- Social & economic inequality reduction
CSR Priorities & Flexibility:
- Companies are encouraged to focus on local areas, but they have the flexibility to balance regional and national development priorities.
Source: Business Line
