The CSR Mandate for Companies in India: Building a Nation addressing Thematic Areas

🇮🇳 CSR Mandates in India

Under Section 135 of the Companies Act, 2013, Corporate Social Responsibility (CSR) is mandatory for companies that meet any of the following financial thresholds in the preceding financial year:

• Net worth ≥ ₹500 crore

• Turnover ≥ ₹1000 crore

• Net profit ≥ ₹5 crore

Such companies must:

• Spend at least 2% of their average net profits of the last three financial years on CSR activities.

• Form a CSR Committee (if CSR budget exceeds ₹50 lakh) to plan, monitor, and assess CSR initiatives.

• Disclose CSR policy and spending in their annual reports and on their websites.

• Transfer any unspent CSR amount to specified government funds within six months of the financial year end

🎯 Thematic Areas for CSR Activities (Schedule VII of the Companies Act)

Companies must align their CSR initiatives with the following approved thematic areas:

1. Eradicating hunger, poverty, and malnutrition

   • Includes sanitation, preventive healthcare, and safe drinking water.

2. Education and Livelihood

   • Special education, vocational skills, and livelihood enhancement.

3. Health

   • Clinics, health camps, and sustainable community health support.

4. Gender and Social Equality

   • Empowering women, old age homes, orphanages, and reducing social inequalities.

5. Environmental Sustainability

   • Conservation of natural resources, flora and fauna, and contributions to Clean Ganga Fund.

6. Art and Culture

   • Restoration of heritage sites, promotion of traditional arts and handicrafts.

7. Support for Armed Forces

   • Welfare of veterans, war widows, and dependents.

8. Sports

   • Promotion of rural, national, Paralympic, and Olympic sports.

9. Relief Funds

   • Contributions to PM National Relief Fund, PM CARES, and other government funds.

10. Research and Innovation

    • Support for incubators and R&D in science, technology, engineering, and medicine.

11. Rural Development Projects

12. Slum Area Development

13. Disaster Management

    • Relief, rehabilitation, and reconstruction

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📊 Sector-Wise Allocation Trends (2025)

Recent trends show CSR funds being increasingly directed toward:

• Education & Skill Development

  • Digital literacy, vocational training, infrastructure.

• Healthcare & Pharmaceuticals

  • Community health programs, disease prevention.

• Environmental Sustainability

  • Renewable energy, waste management, climate action.

• Rural Development

  • Infrastructure, agriculture, women empowerment.

• Technology & Digital Inclusion

  • Bridging the digital divide, e-learning platforms

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