CSR - GDP Ratio

The ratio of the total annual CSR spending to the country’s GDP provides a broad indication of the potential impact of CSR expenditure on the country’s development in the socioeconomic and environmental arena. The country has experienced significant growth in its Gross Domestic Product (GDP) during the period from FY 2014-15 to FY 2021-22. GDP increased from Rs. 1,24,67,959 crores in FY 2014-15 to Rs. 2,34,71,012 crores in FY 2021-22, with a compound annual growth rate (CAGR) of 8.23%.

TABLE 7: CSR SPENDING - GDP RATIO

YEAR	GDP (AT CURRENT PRICES) RS. CRORES	CSR SPENDING (RS. CRORES)	CSR SPENDING AS % OF GDP
2014-15	1,24,67,959	10,066	0.08
2015-16	1,37,71,874	14,517	0.11
2016-17	1,53,91,669	14,543	0.09
2017-18	1,70,90,042	17,099	0.1
2018-19	1,88,99,668	20,218	0.11
2019-20	2,01,03,593	24,966	0.12
2020-21	1,98,29,927	26,211	0.13
2021-22	2,34,71,012	25,933	0.11
CAGR	8.23%	12.56%	-

Source: National Statistical Office, Government of India &Ministry of Corporate Affairs

Data from the Ministry of Corporate Affairs on the total annual spending on CSR activities indicate that CSR spending has registered considerable growth during the period. Actual spending on CSR programmes increased from Rs. 10,066 crores in FY 2014-45 to Rs. 25,933 crores in FY 2021-22, with a CAGR of 12.56%.

However, the total CSR spending is apparently too small at present to make any significant social development impact. The actual CSR spending was 0.08% of GDP in FY 2014-15 and it increased to 0.11% in FY 2021-22. On the whole, the CSR-GDP ratio has been around 0.1% during the period. The situation would perhaps change in future with greater CSR compliance, increasing corporate prosperity and more commitment to CSR interventions.