India guide

Corporate Social Responsibility in India

India is one of the few large markets where CSR spend is mandated for eligible companies under the Companies Act. If you searched for CSR in India, you likely want the 2% rule, eligibility, and what activities count, not another unverifiable list of top companies. This guide covers the rules, the country context, and how to document a credible programme.

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Key takeaways

  • Eligible companies must spend 2% of average net profits on Schedule VII activities.
  • Lists of "top CSR companies" do not replace your board-approved policy and spend records.
  • Activities must be real, tracked, and aligned with the Act, not branding exercises alone.
  • Suppliers outside the mandate still face commercial CSR/ESG asks from large buyers.

The 2% CSR rule in India

Under Section 135 of the Companies Act, 2013, companies that meet the eligibility thresholds must constitute a CSR committee (where required), adopt a CSR policy, and spend at least 2% of the average net profits of the preceding three financial years on activities listed in Schedule VII.

That is why "csr rules in india" and "csr policy india" dominate commercial search. Compliance is a governance process, not a marketing brochure. For a general SME template when you are answering a portal rather than filing under Section 135, see the CSR policy template.

Who is eligible for CSR in India?

Eligibility is based on thresholds for net worth, turnover or net profit as set in the Act and rules (check the current notification for exact figures, as they are updated). If you are in scope, you need a policy, committee arrangements where applicable, and spend against approved projects. If you are out of scope, large Indian and multinational buyers may still ask for a CSR or ESG statement as a supplier condition.

Do not claim Section 135 compliance you do not have. Do claim the operational practices you actually run.

India country context

National indicators explain why education, livelihoods and environment appear so often in Schedule VII programmes.

Source dataWorld Bank Sovereign ESG DataCC BY 4.0 (checked today)
CO₂ emissions per capita
2.2 t2024
Renewable energy share
34.9%2021

Share of final energy use.

Female labour force participation
32.4%2025
Income inequality (Gini)
25.52022

Index scale: 0 = equal.

Basis: India, latest available sovereign indicators

CSR activities and projects that count

Schedule VII covers areas such as education, health, gender equity, environmental sustainability, rural development and more. Good programmes are specific: named partners, budgets, geographies and outcomes. "Best CSR activities ideas" lists are starting points only. Your board policy should name what you will fund this year.

Company lists (top CSR companies, Indian CSR companies list) change with every ranking publisher. They do not satisfy a buyer who asked for your policy and spend evidence.

Document an India CSR programme

Whether you are in-scope or answering a supplier questionnaire, the paperwork trail matters.

  1. 1

    Confirm whether Section 135 applies

    Use current thresholds with your finance lead.

  2. 2

    Approve a CSR policy

    Board-approved, Schedule VII aligned, with annual plan.

  3. 3

    Fund and track projects

    Implementing agencies, budgets, utilisation certificates where required.

  4. 4

    Report

    Board report disclosures and any portal uploads for customers.

Get the CSR policy template

Email the editable outline for commercial portal uploads (not a substitute for Section 135 board policy).

FAQs

What is the 2% CSR rule in India?+
Eligible companies must spend at least 2% of average net profits of the preceding three years on Schedule VII CSR activities, under the Companies Act framework.
What is CSR in India?+
For eligible companies it is a statutory spend-and-governance duty. For many suppliers it is also a commercial policy customers request during onboarding.
Who is eligible for CSR in India?+
Companies meeting the Act's net worth, turnover or net profit thresholds. Confirm the current figures in the statute and rules before concluding you are in or out of scope.
Which are the top CSR companies in India?+
Rankings vary by publisher and year. For compliance or vendor review, your own policy, projects and spend records matter more than any league table.

Need a portal-ready CSR / ESG statement?

Useful when a customer asks for a statement even if you are outside Section 135 filing.

Sustainability Statement (CSR / ESG)

ESG, CSR and anti-slavery in one compliant PDF, built for supplier portals. (AU$499 inc GST)

Get started->

Data sources

Country indicators: World Bank Sovereign ESG Data (CC BY 4.0).