Vadodara: Riding on profitability in its manufacturing and industrial sectors, Gujarat has emerged as the country’s second-largest destination for Corporate Social Responsibility (CSR) investments, recording the fastest growth in CSR spending among all states. Companies spent Rs 4,549 crore on social development projects in the state during FY2024-25.Gujarat registered a 68% year-on-year increase in CSR expenditure, which was four times the national growth rate of 17% and accounted for 11% of India’s total CSR spending, according to the Bharat CSR Performance Report 2026 released by Vadodara-based CSR consulting and research firm Fulcrum on Saturday.Only Maharashtra attracted higher CSR investments, with companies spending Rs 8,631 crore.The report attributes Gujarat’s sharp rise to the strong performance of its manufacturing, petrochemical, pharmaceutical and infrastructure sectors. Higher corporate profits in these industries translated into larger mandatory CSR contributions under the Companies Act.During the year, 4,425 companies implemented CSR initiatives across all 30 districts of Gujarat. Ahmedabad, Jamnagar, Vadodara, Surat and Gandhinagar emerged as the state’s biggest recipients of CSR funding.Releasing the report in Vadodara, Fulcrum Co-CEO Parthesh Vyas described Gujarat as the standout performer in India’s CSR landscape.“While national CSR spending increased by 17%, Gujarat’s total CSR investment rose by 68%, far outpacing the rest of India,” Vyas said. He, however, noted that CSR investments continue to remain concentrated in a handful of industrialised states.The report shows that corporate India’s CSR spending reached an all-time high of Rs 40,794 crore in FY2024-25, taking cumulative CSR investments over the past decade to more than Rs 2.61 lakh crore.More than 29,500 companies implemented 72,233 CSR projects across the country during the year.Fulcrum Co-CEO Arun Mathai Marette said CSR spending has expanded at a much faster pace than the Indian economy over the past decade.“Over the past decade, CSR spending has grown by more than 300%, marking a significant milestone in India’s CSR journey. While India’s GDP grows at around 7%, CSR spending has been growing at an average of 15%,” Marette said.Education remained the largest recipient of CSR funding nationwide, attracting Rs 13,877 crore (34%), followed by healthcare with Rs 8,531 crore (21%). Spending on environmental sustainability rose 40% to Rs 3,397 crore. The report also found that 98% of CSR funds were spent directly on social projects, while only 2% was transferred to govt funds.Among the companies driving CSR spending in Gujarat were Reliance Industries, Reliance Jio Infocomm, ArcelorMittal Nippon Steel India, Adani Power and HDFC Bank, the report said.
