CSR Spending by India Inc. Plummets by 64% in FY 2020-21
The Corporate Social Responsibility (CSR) spending of India Inc fell by over 64 per cent in the FY 2020-21 as compared to the previous year. According to the official data submitted to the union legislative body, The CSR spending of the last financial year amounted to Rs. 8,828.11 crore, which shows a steep fall as compared to Rs. Rs. 24,688.66 crore in FY 2019-20 and Rs. 20,150.27 crore in FY2018-19
CSR Expenditure Trends in FY 2020-21 of India Inc.
In India, the CSR architecture is disclosure-based and only CSR mandated companies are required to file details of CSR spent annually in the MCA-21 registry. As per these submissions, in FY 2020-21, as many as 1,619 companies have conducted CSR initiatives and spent Rs. 8,828.21 crore for it. Of these companies, 1,599 are non-PSUs, while 20 are PSUs. Non PSUs spend for CSR in 2020-21 consist of the major CSR spending at Rs. 8,266.93 crore, while the 20 PSUs cumulatively spent Rs. 561.18 crore, as per available official data up to September 30, 2021.
Top 3 States Recipient of CSR Funds in FY 2020-21
Maharashtra is home to the headquarters of India’s largest companies. The city of Mumbai is also referred to as the financial capital of the country. This is why it receives a lot of CSR focus from India Inc.
The state of Maharashtra was the recipient of the highest share of CSR funds in the last financial year. The total amount of CSR spending in the state amounted to about Rs. 1101 crores. This amount was contributed by over 544 companies. The top three contributors in Maharashtra consisted of Reliance Industries Limited, Serum Institute of India Private Limited, and Bajaj Auto Limited, which spent Rs. 383 Crores, Rs. 54.90 crores and Rs. 46.15 crores respectively on CSR. The top sectors that copped focus of CSR funds included Education (Rs. 587 crores), Healthcare (Rs. 217 crores), and Environmental Sustainability (Rs. 74.50 crores).
People of Gujarat are known for their business acumen, giving rise to a large number of small and large scale entrepreneurs contributing to the state’s economy. This also makes the state an attractive destination for the companies to spend their CSR energies on.
Gujarat has received the second-highest amount of funds spent towards CSR in fiscal 2020-21. CSR fund worth Rs 582 crore was spent across Gujarat during the last financial year. Over 280 companies participated in CSR projects in the state. The largest CSR spenders in the state included Maruti Suzuki India Limited, Cadila Healthcare Limited, and Torrent Power Limited who spent Rs. 91.83 crores, Rs. 78.54 crores, and Rs. 34.55 crores respectively. The highest focus of CSR spending was on projects related to the healthcare sector (Rs. 318 crores), education (Rs. 129 crores), and rural development projects (Rs. 25 crores).
Andhra Pradesh is known as one of the fastest-growing states in the country. The state with the highest rating for Ease of doing business attracts a lot of Business which has eventually led to a rise in CSR investments.
Andhra Pradesh has received the third-highest share of CSR funds spent in FY 2020-21. This accounted for the spending of Rs 447 crores in the state. About 89 companies participated in CSR projects in the state. The largest CSR spenders in the state included ITC Limited, Reliance Industries Limited, and Infosys Limited who spent Rs. 172 crores, Rs. 111 crores, and Rs. 43.50 crores respectively. The highest focus of CSR spending was on projects related to the rural development projects (Rs. 121 crores) considering the fact that the economy of the state relies heavily on agriculture. Apart from that, the healthcare sector received CSR funds totalling Rs. 118 crores and education got Rs. 54.54 crores.