Context: CSR Spending India FY25
Corporate Social Responsibility (CSR) spending by listed companies increased by 23% in Financial Year 2024–25 (FY25) to ₹22,212 crore, mainly because companies earned higher profits.
1. What is Corporate Social Responsibility (CSR)
- A legal obligation under Companies Act, 2013 (Section 135)
- Companies must spend on social development activities
- Rule: 2% of average net profit (last 3 years)
- Applies to companies with:
- Net worth ≥ ₹500 crore
- Turnover ≥ ₹1000 crore
- Net profit ≥ ₹5 crore
2. What happened in FY25
- CSR spending rose sharply (23%)
- Reason: profits increased (~22%)
- Almost all companies (98%) followed CSR rule
3. How companies behaved
- 48% companies spent more than required
- 28% spent exactly 2%
- 70% companies increased spending
- Some companies spent even when in loss
4. Where money was spent
- Education — highest (~₹1,137 crore)
- Healthcare — second (~₹840 crore)
- Less focus on slums, veterans, disaster management
