New Delhi [India], March 22 : South and West India have witnessed more Corporate Social Responsibility (CSR) spending by the technology companies in India compared to other regions, with more companies spending beyond the mandate of 2 per cent, according to a report prepared jointly by Nasscom and BOD Consulting.
The report added that the leading areas of spending for major tech companies are in education (38.4 per cent) followed by environment and climate change (25.5 percent) and skilling (16 per cent).
Education, Healthcare, Poverty Eradication-Hunger Malnutrition, Environment and Sustainability were the leading segments where projects were initiated by the tech industry, the report observed.
According to the report, about 83 per cent tech companies reported more than 2 per cent of their profits being allocated to CSR in FY23. This was much higher than the 65 percent reported for non-tech companies.
"India's tech industry is elevating corporate social responsibility into a transformative force for large-scale impact. Our findings reveal that in FY23, tech companies led 2,610 CSR projects, contributing 23 percent of total CSR spending, with 83 percent exceeding the mandated 2 percent allocation. Notably, 65 per cent of initiatives are today tech-driven, using AI-powered monitoring, online learning platforms, and advanced skilling programs to create lasting impact in education, jobs, and sustainability," said Saurabh Uboweja, Founder and Managing Partner, BOD Consulting.
He further added, "Beyond regulatory compliance, businesses are proactively linking CSR with national agendas and the UN SDGs. Also, the path ahead lies in stronger collaboration, data-led implementation, and scaling inclusive models to elevate communities so that technology-enabled CSR keeps driving India's growth in a sustainable and impactful manner."
As per the observation of the report, companies involved in CSR activity grew by 22 per cent in the Financial Year F(Y23) over FY22. Total spending on CSR increased by 13 per cent in FY23 over FY22, as per the report.
As per the observation, the companies spending more than 2 per cent of profits increased from 64 percent to 74 per cent in FY23 over FY19.
According to the data, about 75 leading tech companies spent Rs 5,443 Crores on CSR in FY23 while more than 80 percent tech companies crossed the mandated 2 per cent benchmark. A total of 2,610 CSR projects by the 75 major tech companies were undertaken in FY23, the report adds.
Going forward, the report highlighted that despite significant progress, challenges persist in ensuring equitable geographic distribution of CSR spending, focusing on aspirational districts, and fostering deeper NGO collaborations.
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor