India's Companies Act 2013 mandates companies to spend about 2 percent of their profits on CSR. Crisil in their CSR Yearbook finds that 1505 companies were meeting conditions to have mandatory CSR spending requirement in fiscal 2016. Of these companies, 77% have reported their CSR spending.
Overall the CSR spending has increased from Rs 6,841 crores to Rs 8,349 crores from 2015 to 2016 fiscal, showing an increase of 22 percent. The spending on health and sanitation has shown an impressive increase of Rs 739 crores (39 percent increase over last year) and the total CSR spending on health and sanitation is Rs 2,614 crores. The share of Health in CSR spending is about 31 percent.
Most of these spendings have been routed through various NGOs.
CSR Spending on Health 2016 (Rs Crores and %)
Source: Altruism Rising: The CRISIL CSR Yearbook, January 2017
Increase in CSR Spending Sector-wise in 2016 (Rs Crores)
Source: Altruism Rising: The CRISIL CSR Yearbook, January 2017
Of course, there is significant challenge of CSR spending on health. The cost-effectiveness of interventions needs to make an integral part of these investments. The CSR spending can not substitute state action, and in health, the collaboration with government will bring the scale make interventions cost-effective. Achieving health goals need a lot of behavioral changes at various levels, and these interventions are implemented through civil society. Ensuring that these interventions are effective will need flexible funding. Complimenting and collaboration are the routes to create maximum impact.
Source: Altruism Rising: The CRISIL CSR Yearbook, January 2017
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