Context: A new Developmental Intelligence Unit (DIU) report has revealed that 60% of India’s CSR spending in 2022–23 was concentrated in six states, while Aspirational Districts received less than 20%.
About CSR Spending Imbalance:
- What it is?
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- Corporate Social Responsibility (CSR) is a statutory mandate under Section 135 of the Companies Act, 2013, requiring eligible companies to spend at least 2% of their average net profits (over the preceding three years) on social development activities.
- Trends (2022–23)
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- Total CSR Expenditure – ₹29,989.92 crore, showing 12.8% growth from the previous year.
- Geographical Concentration – Maharashtra, Tamil Nadu, Karnataka, Andhra Pradesh, Delhi, and Gujarat together received ~60% of CSR funds.
- Neglected Regions – Aspirational Districts in Jharkhand, Chhattisgarh, Bihar, Odisha, Madhya Pradesh, and the Northeast got less than 20%.
- Challenges Identified – Misinterpretation of “local area preference”, duplication of government schemes, lack of impact-based metrics, and low community participation.
Relevance in UPSC Exam Syllabus:
- General Studies II (Governance) – CSR as a tool for inclusive growth, role of corporates in social development, and legal framework under the Companies Act.
- General Studies III (Indian Economy & Development) – Resource allocation, public-private collaboration in development, addressing regional disparities.
- Essay & Ethics Papers – Themes on social responsibility, equity, corporate accountability, and sustainable development.
