How CSR Landscape have evolved in India

1. Legal and Regulatory Regime

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The Companies Act, 2013 (Section 135) made it mandatory for companies with a certain threshold (₹500 crore net worth, ₹1,000 crore turnover, or ₹5 crore net profit) to spend at least 2% of their average net profits on CSR activities. The amendments in 2021 introduced penalties for non-compliance and allowed companies to carry forward unspent CSR funds into designated projects.

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This regulation marked a paradigm shift, making India one of the first countries to legally mandate CSR. The mandatory CSR introduced by India was a significant innovation in the recent economic history of the world, through a rare and significant introduction in the Company Law regime, in its four-hundred-year history.

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This law institutionalized corporate philanthropy in India, making CSR giving and reporting mandatory. As a result, CSR compliance has increased steadily over the years.

Examples:

• Reliance Industries, one of India's top CSR spenders, began focusing on rural development and healthcare through Reliance Foundation.

• The Tata Group increased its structured CSR spending post-2013, focusing on education, rural development, and healthcare through Tata Trusts.

• Infosys Foundation actively complies with CSR mandates, supporting education, healthcare, and heritage conservation.

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2. Shift from Philanthropy to Strategic CSR

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Corporate philanthropy has evolved from one-time donations to structured, impact-driven social investments. Initially, corporate philanthropy was ad hoc and donation-driven, focussing on charities, religious organizations, and disaster relief. With the CSR law in place, companies started adopting a more strategic approach, aligning their CSR initiatives with national development goals such as education, healthcare, women’s empowerment, and rural development.

• Many large companies set up CSR foundations ( Infosys Foundation, Wipro Foundation) to manage funds efficiently. Businesses began moving beyond compliance and integrating philanthropy into their core business strategies.

• Examples:

• The Tata Group has a long history of philanthropy through Tata Trusts (established in 1892). After the 2013 CSR mandate, Tata Sons formalized its contributions across sectors like health, education, and rural development. In FY 2021-22, Tata Group spent over ₹1,000 crore on CSR initiatives, much above the mandated 2%.

• Wipro Foundation, led by Azim Premji, shifted from pure donations to tech-driven philanthropy, focusing on education, skilling, and sustainability.

• Infosys was engaged in philanthropic work in education and rural development, even before the CSR law. Post-2014, Infosys Foundation expanded its focus to digital literacy, STEM education, and healthcare.

• Mahindra & Mahindra moved from one-time donations to long-term impact projects post 2014 and began focussing on girls' education (5 Lakhs), skill training for underprivileged youth, livelihoods and sustainability

• HDFC Bank's Parivartan Initiative focuses on sustainable rural development, financial literacy, and livelihood creation rather than just one-time donations.

• ITC Limited integrated CSR with its business model through ITC e-Choupal, benefiting farmers via digital empowerment and market access.

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3. SDG Alignment with CSR Projects

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The Sustainable Development Goals (SDGs) set by the United Nations provide a global blueprint for achieving a sustainable future by 2030. Indian companies are integrating SDGs into their CSR initiatives, focusing on key areas such as poverty alleviation, education, healthcare, environmental sustainability, and gender equality. This alignment enhances sustainability, community well-being, and corporate reputation, making businesses key stakeholders in India's development journey.

Examples:

• Tata Steel’s CSR project "Maternal and Newborn Survival Initiative (MANSI)" improves maternal and child healthcare in rural areas (SDG 3- Good Health & Well-being).

• Infosys Foundation supports digital education through infrastructure development and e-learning initiatives in government schools (SDG 4 - Quality Education).

• ITC Limited implements "Mission Sunehra Kal" which focuses on water conservation and sanitation in rural areas (SDG 6 - Clean Water & Sanitation).

• Reliance Industries promotes renewable energy solutions in rural areas through solar electrification projects (SDG 7 - Affordable & Clean Energy).

• Mahindra & Mahindra is committed to carbon neutrality and promotes afforestation under its "Mahindra Hariyali" initiative (SDG 13- Climate Action).

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4. Growth of ESG (Environmental, Social, and Governance) and Sustainability Focus

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Over the past decade, ESG principles have gained prominence, with investors evaluating companies based on their social and environmental impact. Companies are integrating sustainability goals, such as carbon neutrality, water conservation, and waste management, into their CSR policies. The SEBI mandate (2021) required the top 1,000 listed companies to submit a Business Responsibility and Sustainability Report (BRSR).

Examples:

• Tata Steel focuses on carbon neutrality, water conservation, and community-based afforestation programs.

• Hindustan Unilever launched the Plastic Waste Management initiative, helping reduce plastic pollution and promoting sustainable practices.

• Wipro emphasizes renewable energy and sustainability in its business operations, integrating ESG goals into its CSR strategy.

• Azim Premji Foundation is investing in rural climate resilience

• Tata Cleantech Capital provides finance for green energy projects

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5. Sectoral Priorities in CSR Spending

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Education and skill development has emerged as a major focus area, with initiatives like STEM education for underprivileged children, vocational training, and digital literacy programs. CSR spending on healthcare increased significantly post-COVID-19, especially for hospital infrastructure, vaccine distribution, and mental health support. Rural Development has emerged as a focus area, emphasising sanitation (Swachh Bharat Mission), clean drinking water, and livelihood generation. Women’s empowerment has gained more initiatives, targeting female entrepreneurship, menstrual hygiene, and financial literacy.

Examples:

• Education and Skill Development:

• Infosys Foundation: Runs Infosys Springboard, a free digital learning platform for students and teachers.

• L&T (Larsen & Toubro): Established Construction Skills Training Institutes (CSTI) to upskill construction workers.

• Healthcare

• Biocon Foundation: Launched Arogya Raksha Yojana, providing healthcare access to rural populations.

• Sun Pharma: Runs the Dilip Shanghvi Foundation, offering affordable healthcare in rural areas.

• Rural Development:

• Adani Group's SuPoshan Project tackles malnutrition and anaemia among women and children in rural India.

• JSW Foundation works on water conservation projects in drought-prone regions.

• Women’s Empowerment

• Godrej Group launched Godrej Salon-I, a vocational training program for women in the beauty and wellness industry.

• Hindustan Unilever’s Project Shakti helps rural women become entrepreneurs by distributing HUL products.

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6 Information Technology as a Game-Changer

1. Information Technology has become a game changer:

2. Crowdfunding Platforms such Ketto Online Ventures Pvt. Ltd, ImpactGuru and Milaap help NGOs in the country to raise funds for a cause. GiveIndia, an AI-powered fundraising platform, enables verified NGOs to receive donations efficiently.

3. Blockchain, a digital ledger, used for transparent donations, are revolutionizing how corporations engage in philanthropy. This decentralized record-keeping systems is used for reducing corruption and fraud in CSR.

4. AI is deployed to address societal challenges like healthcare access, disaster relief, or education gaps.

5. Tech and digital Inclusion is facilitated by increased focus on digital literacy, STEM education, and skilling programs for marginalized communities.

6. Companies are leveraging AI, blockchain, and data analytics to track and enhance CSR impact. CSR tech platforms like Goodera have emerged, enabling corporations to monitor projects and measure social impact.

Examples:

• Tata Trusts is using blockchain for fund disbursement and accountability in social programs.

• Infosys Foundation uses blockchain for healthcare CSR projects, ensuring transparency in funding and impact assessment

• Adani Foundation supports smart farming through AI-based weather forecasting and crop advisory systems for farmers.

• TCS (Tata Consultancy Services) runs TCS Ignite, an AI-driven learning program for underserved students.

• Zomato Feeding India uses digital platforms to connect surplus food from restaurants to underprivileged communities.

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7. Rise of Corporate Foundations and NGO-Government Collaborations

Many corporations now run their own foundations (e.g., Tata Trusts, Infosys Foundation, Reliance Foundation) to manage long-term CSR projects. Another trend is that corporates are partnering with the government and NGOs to scale philanthropic efforts. There is  increasing Public-Private Partnerships (PPP) in areas such as education, healthcare, and skill development.

Examples:

Reliance Foundation and Government of Maharashtra have  joint healthcare & education programs.

• Tata Trusts and Bill & Melinda Gates Foundation have a partnership for public health and nutrition initiatives.

• Vedanta and NITI Aayog implement the "Nand Ghar" project for rural childcare and women empowerment.

• Tata Trusts partners with the government on healthcare projects like cancer care facilities across India.

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8. Recent Trends in Indian CSR

• Impact assessment mandate has become challenging and major companies have started employing innovative and highly sophisticated approaches and methodologies for impact assessment of CSR projects. Tech Mahindra implements AI-driven social impact assessment, ensuring transparency in CSR impact measurement.

• Decentralization and hyperlocal CSR is becoming the norm, with focus on rural and underserved communities. Flipkart Foundation: Supports hyperlocal CSR, focusing on small businesses and local artisans

• Employee volunteering and payroll giving are gaining ground. Companies are encouraging volunteerism and payroll giving, where employees contribute a portion of their salaries to social causes. Several companies including Flipkart, Amazon, and Google India have such programmes.

• Venture philanthropy is a recent trend. Many corporates are investing in social enterprises and impact-driven startups, that generate both profit and social impact. Tata Capital’s Impact Fund supports startups in education & healthcare. Infosys Foundation invests in tech-driven ed-tech and healthcare social startups.

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Final Remarks

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Over the past decade, India’s CSR and corporate philanthropy landscape has evolved from traditional charity to strategic, impact-driven initiatives. The regulatory framework, SDG alignment, ESG and sustainability focus, Sectoral Priorities,  digital advancements, ESG imperatives, and Corporate NGO-Government Collaborations have reshaped how businesses contribute to society. The future of CSR in India lies in greater accountability, innovation, and deeper integration with core business strategies.

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