Catalytic CSRWhere Focused Capital Can Move
India’s Developmental Needle

India’s development needs are evolving faster and becoming more complex, while CSR is growing in scale but remains concentrated in familiar sectors and better-developed geographies. This early analysis previews a larger report by Sattva Consulting and India Data Insights, which will examine whether CSR capital is reaching the places and problems where progress is most slow.

It maps where CSR goes by sector and geography, and where it falls short of India's 2030 development targets. Our aim is to show where CSR can be most catalytic.

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India’s 18% progress on development indicators between 2020-24 signals momentum, however, this progress is uneven

The NITI Aayog’s All-India SDG Index score reveals that India is continuing to make progress towards development goals, with the number of SDGs scoring below 65 falling from 10 of 15 in 2019–20 to just 4 of 15 in 2023–24 (i.e. SDG 2, 4, 5 & 9 linked to health, education, gender equality and technology & innovation)

However, progress across individual SDGs remains uneven: while 9 of 15 SDGs improved by 10% or more between 2020-24, 5 saw limited improvement of less than 10%. Livelihoods (SDG 8), for instance, improved by just 6%, while Technology, Innovation & Infrastructure (SDG 9) declined by 6% over the same period.

Note: NITI Aayog’s national comparison covers 15 SDGs; SDG 14 is excluded. 65 is the “Front Runner” threshold.
Source: Niti Aayog SDG Index 2023-24

Only ~1/3rd of SDG indicators are on track for 2030, with 24% demonstrating worsening values, pointing to the next frontier for action

Deeper analysis reveals that progress is uneven within SDGs, with 33.3% of indicators progressing on track, 42.7% showing limited progress and 24% worsening.

Progress across related indicators also varies, for example, maternal mortality improved while child underweight remained stagnant, highlighting how progress in maternal health can coincide with progress in child nutrition. However, the female-to-male wage ratio improved even as the share of workers in informal employment increased.

This highlights that development challenges are more complex than uneven SDG progress alone, requiring a shift from sector-level allocation towards specific problem statements and their underlying drivers

India requires continued and more targeted action towards persistent and emerging challenges

Source: MoSPI SDG Progress Report 2026, Sustainable Development Report 2026

With a CAGR of 15%, CSR has reached meaningful scale and has a catalytic role to play to address India’s development needs

FY 24-25 saw CSR spending reach ₹40,794 Cr. With 56% of companies spending beyond the stipulated amounts, CSR has become more than a legal compliance requirement.

Despite this growth in the volume of funds, CSR spending is modest in relation to India’s development needs, with funding often trailing central government schemes.

Hence, there is opportunity to leverage CSR as catalytic funds by complementing government spending, building evidence on what works, and enabling wider adoption.

Source: Sattva Analysis of CSR Data (csr.gov.in), Govt. of India Budget 2024-25

However CSR funding currently remains concentrated, with 80% flowing to five broad areas and further clustering within specific sub-sectors

In the three years from FY 22-23 to FY 24-25, ~35% has gone to Education, 21% to Healthcare and 11% to Livelihoods & Skilling. Together with Environment and Rural Development, these five sectors attract over 80% of total CSR funding.

While these sectors represent core development needs, a deep-dive indicates that funding is concentrated within specific sub-sectors

CSR can maximise its catalytic potential by directing capital towards unmet needs and emerging priorities where existing funding remains limited.

CSR Funding by Development Sector (FY22-23 to FY24-25)

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CSR is beginning to move towards high-need states, seeing ~35% CAGR in CSR spend

CSR funding in high-need states is growing faster, signalling a gradual shift towards higher-need geographies. This growth has been supported by ~200% increase in CSR funding in Aspirational Districts and ~137% increase in PSU CSR investments between FY22-25.

Yet the underlying funding gap remains significant. The five highest-need states as per MPI receive just ₹94 CSR per capita, versus ₹455 in the five lowest-need states as per MPI. Bihar’s MPI is nearly 5× Maharashtra’s, while the latter receives nearly 19× more CSR per capita.

Faster percentage growth has not yet translated into comparable absolute funding. Over three years, Maharashtra received an additional ~₹3382 crore in CSR funding, compared with just ₹292.5 crore in Bihar.

High-need statesLow-need states3-yr CAGR

Note: To show 3-yr CAGR, 4 years of CSR Funding has been considered. To show need, MPI (Multidimensional Poverty Index) which measures poverty across multiple dimensions, including health, education and living standards has been considered.
Source: Sattva Analysis of CSR Data (csr.gov.in), Niti Aayog SDG Index 2023-24, Niti Aayog MPI Index Report 2023

Yet the shift has yet to translate into funding at the scale of need as 70% CSR funding is directed towards urban and industrial districts

  • District-level reporting has improved sharply: funding that can't be traced to a district fell from 33% to 10% in three years, making geographic patterns increasingly visible.
  • Yet funding remains concentrated in urban and industrial districts: Tier-1 cities’ share rose from 29.3% to 37.6%, industrial districts from 8.1% to 12.5%, and urban districts account for 57% of CSR funding.
  • Funding to higher-need districts is beginning to increase, but remains limited: high-MPI districts rose from 1% to 2.3%, while medium-MPI districts increased from 13% to 18%.
  • This suggests that CSR’s geographic expansion is happening alongside, rather than replacing, its established concentration in urban and industrial centres.
  • There is significant headroom to deepen this shift: redirecting an additional 5% of FY24–25 CSR funding to high-need districts would triple the funding they receive today.

Distribution of CSR Funding by District Types
(%, FY 2022-23 & FY 2024-25)

Distribution of CSR Funding by MPI Category
(%, FY 2022-23 & FY 2024-25)

Source: Sattva Analysis of CSR Data (csr.gov.in), Niti Aayog MPI Index Report 2023

Corporates needs to continuously reassess where funding is translating into progress, where gaps persist, and where it can add the most value

Higher CSR allocation can coincide with improvement in development indicator

Early Childhood Education saw higher CSR funding growth along with greater improvement in the national indicator, than Higher Secondary Education

Early Childhood Education

418%41% CSR GrowthSDG Indicator Growth

Higher Secondary Education

228.9%19% CSR GrowthSDG Indicator Growth

CSR can act as catalytic capital alongside broader development efforts, creating the need to stay agile and redirect capital as development needs and opportunities evolve.

However, higher CSR funding does not necessarily translate into better outcomes

Entrepreneurship & Self-Employment saw nearly 2× the CSR funding growth of Agriculture & Allied Livelihoods, yet its national indicator showed no improvement, highlighting the need to ensure funding targets the right gaps and leverages appropriate pathways to drive change.

Agriculture and Allied Livelihoods

993.7%53% CSR GrowthSDG Indicator Growth

Enterpreneurship & Self Employment

1916.9%No Change CSR GrowthSDG Indicator Growth

CSR can act as catalytic capital alongside broader development efforts, creating the need to stay agile and redirect capital as development needs and opportunities evolve.

Source: Sattva Analysis of CSR Data (csr.gov.in), Niti Aayog SDG Report 2023

CSR has brought size and predictability of funding.
It now needs agility.

Continuously reassess

CSR should operate as a continuous learning and adaptation cycle- refining both its strategy and programmes to improve effectiveness over time.

As contexts, needs and evidence evolve, neither strategic priorities nor programme design should remain static.

Move closer to critical needs

Rather than replicating established funding patterns or concentrating on issues already seeing an upswing in funding, CSR should increasingly direct capital towards critical, persistent gaps where the country or specific regions have been unable to break inertia and where other forms of capital are less likely to flow.

Act as a multiplier

Given the urgency and scale of these challenges, CSR should seek to multiply impact rather than simply add to the pool of funding. This requires leveraging partnerships, innovation and technology to unlock outcomes that grant-making alone cannot achieve.

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