India is one of very few countries to make corporate charity a legal duty.
Under Section 135 of the Companies Act, 2013, any company with a net worth of ₹500 crore or more, a turnover of ₹1,000 crore or more, or net profit of ₹5 crore or more must spend at least 2 per cent of its average net profit over the previous three years on approved social causes.
Nearly 30,000 firms now spend under the rule. In July 2026, India Inc's corporate social responsibility (CSR) spending hit a record ₹40,794 crore in 2024-25, up 17 per cent on the year before.
CSR funds don’t typically go straight from a company to the community. They usually pass through an implementing organization first.
There is no central plan that directs the money. Companies must choose from the approved list in Schedule VII (education, health, rural development, environment, etc.) and their Board / CSR Committee decides the specific cause, project, and location.
Richer States and sectors like education where public provision is already strong are getting bulk of the funds. 61% of the total CSR expenditure was invested in just these 10 states. Maharashtra continue to lead as the top recipient of CSR funds.
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| Chart - The Hindu Business Line |
Delhi received roughly ₹1,243 per person while Bihar received about ₹35 a head. Not surprisingly, Bihar has the weakest education outcomes in the country while Delhi had the highest.
Education was the single biggest CSR cause, absorbing about 34 per cent of all spending in 2024-25. Together with health, Education accounts for roughly 56 per cent of all CSR.