Eastern india emerges as a major hub for CSR investments driven by industrial growth and hyper-localization
Times of India | 28 November 2025
KOLKATA: Eastern India is rapidly emerging as a focal point for corporate social responsibility (CSR) activities, drawing significant attention and investment from major industries. This region, rich in minerals and industrial potential, is becoming a magnet for CSR initiatives, particularly in districts like Jharsuguda in Odisha and Raigarh in Chhattisgarh. These areas have seen a substantial influx of CSR funding, with Jharsuguda alone receiving over Rs 549 crore in 2023–24, primarily from sectors such as metals, energy, and mining.
This trend highlights a strategic shift in CSR funding, which is increasingly aligning with India's industrial growth trajectory moving eastward. As heavy industries establish and expand their operations in this mineral-rich corridor, they are also channelling their CSR efforts to support local communities and development projects.
Public sector undertakings (PSUs) are playing a pivotal role in this transformation, dominating the CSR landscape in eastern India. They allocate a significant portion of their CSR budgets—nearly 11%—to Aspirational Districts, which is three times the contribution of private corporations. This commitment underscores the PSUs' focus on fostering social and economic development in these regions.
The 'State of CSR in India 2025' report by Sattva Consulting provides further insights into this evolving landscape. It reveals that CSR activities are now influenced not only by company size and sector but also by geographical and ownership factors. The report, based on data from the Ministry of Corporate Affairs and individual company reports, highlights the growing importance of tier II cities and industrial hubs as beneficiaries of CSR funding.
These areas are experiencing remarkable growth in CSR investments, with some regions witnessing growth rates of up to 120%. This shift from traditional metro areas to tier II cities reflects a strategic focus on addressing local development needs and aligning CSR efforts with the geographical footprint of business operations.
A notable trend in current CSR projects is hyper-localisation, with 85% of initiatives now concentrated on a single district. While this approach promises localised impact, it necessitates better alignment with specific development needs to ensure transformative changes.
The CSR landscape in eastern India is also diversifying in terms of implementation partners. Beyond traditional non-profits, universities, hospitals, and corporate foundations are increasingly involved in executing CSR activities. This diversification enables more strategic and impactful project execution.
However, despite the increased focus on tier II cities, a significant portion of CSR funds still flows into areas with relatively low poverty levels. This indicates a misalignment with some development needs, suggesting that further ecosystem analysis is required to maximise the impact of CSR funding.
“India’s CSR footprint is expanding, but meaningful impact will require more than geographic spread. Today, 75% of district-focused CSR still flows into just 193 districts, many of which have low poverty levels. We need sharper localisation aligned with development indicators, ensuring that CSR not only reaches more places but also reaches the communities that need it most. East India is emerging as a strong example of this shift. Odisha, in particular, has seen a doubling of CSR inflows between FY22 and FY24, demonstrating how industrial growth, better reporting, and a closer alignment of CSR with business values can unlock region-wide development,” said Sattva Consulting CEO & Co-founder Srikrishna Sridhar Murthy.