Gurugram, July 29, 2025 – ICRA ESG Ratings’ latest report, ‘Beyond Compliance: CSR Leadership Among India’s Top 100 Companies – A comparative analysis of CSR Trends for India Inc.’, highlights the growing momentum among India’s top 100 companies by market capitalisation towards CSR spending and a deepening alignment with the United Nations Sustainable Development Goals (UN SDGs), as companies increasingly move beyond regulatory compliance to proactively invest in initiatives—particularly in quality education and good health and well-being—that deliver long-term societal impact.
During FY2024, the sample set of companies on average spent Rs. 129 crore on CSR initiatives, which increased from Rs. 100 crore spent in FY2022. While budgets grow in line with the average profits in line with the CSR norms, ICRA ESG observed an impressive 16% companies spending higher towards CSR, despite a decline in profits, with 48% surpassing the mandated CSR budgets, underscoring their commitment beyond compliance.
The report finds that education and healthcare remain the top CSR focus areas, with SDG 4 (Quality Education) and SDG 3 (Good Health and Well-being) showing the highest alignment across the sample set. Maharashtra and Gujarat received the highest CSR allocations by corporates, while Odisha recorded a major growth of 85%, followed by Andhra Pradesh with 70% growth in CSR spending concentration, reflecting an increased corporate focus on underdeveloped regions with high development needs and potential for impact.
Sectoral leaders in CSR spending include oil and gas refineries sector, private sector banks, iron & steel and software consulting firms. CSR spending in aspirational districts surged by 115% from FY2021 to FY2023. While a few companies have directed up to half of their CSR budgets toward aspirational districts, the majority continue to allocate less than 5%—highlighting the need for greater strategic focus and resource allocation in aspirational districts.
Commenting on the findings, Ms. Sheetal Sharad, Chief Ratings Officer, ICRA ESG Ratings Limited, said, “The growing alignment with UN SDGs and proactive CSR spending—even beyond mandated budgets—reflects a maturing approach to inclusive development. These efforts are not only enhancing stakeholder value but also contributing meaningfully to India’s broader climate and social goals.” While progress is evident, the report emphasises the importance of diversification in the CSR focus and exploration of innovative partnerships along with funding alternatives that can bring attention to other causes which are less-supported yet remain vital.