From Financialexpress · FE Bureau · · 1m 20s
Charity skips poor in India's CSR spending
India's CSR funds concentrate in wealthy states, leaving Bihar with minimal aid despite urgent needs.
In brief
India's CSR funds concentrate in wealthy states, leaving Bihar with minimal aid despite urgent needs. India's CSR spending reaches Rs 40,794 crore but disproportionately benefits richer states like Maharashtra over Bihar, where per capita spending is 24 times lower. Originally reported by Financialexpress.
India's CSR spending grows
India’s corporate social responsibility spending has reached a record Rs 40,794 crore according to government data.
Spending skewed toward wealthy states
CSR funds concentrate in states with strong corporate presence like Delhi, Maharashtra, Karnataka, and Gujarat.
Bihar receives minimal CSR funds
Bihar received Rs 260.53 crore in 2023-24 versus Rs 6,065.95 crore for Maharashtra, a gap of nearly 24 times.
Bihar's poverty situation
Despite progress, 33.76% of Bihar’s population remains multidimensionally poor versus 14% nationally.
CSR projects cluster in urban areas
Projects tend to cluster around established urban centers where companies already have offices and staff.
Policy design failure
Section 135 created private development capital but no mechanism to steer funds toward where need is greatest.
Better disclosure needed
Companies should disclose CSR spending at district level with details of beneficiaries and outcomes.
Bihar as test case
Bihar can serve as a benchmark to test whether India’s CSR architecture closes development gaps or widens them.
The short version
India's CSR spending reaches Rs 40,794 crore but disproportionately benefits richer states like Maharashtra over Bihar, where per capita spending is 24 times lower.
