Empirical Analysis of Corporate Social Responsibility Expenditure in Rajasthan: A Five-Year Longitudinal Study (2019–20 to 2023–24)

Abstract

Rajasthan covers 342,239 square kilometers (132,139 mi2), which around 10.4 per cent of India's total geographical area. It is on India's northwestern side, where it comprises most of the wide and inhospitable Thar Desert (also known as the Great Indian Desert) and shares a border with the Pakistani provinces of Punjab to the northwest and Sindh to the west, along the Sutlej-Indus River valley. The population of Rajasthan approx.8.39 cores (2026) which contributes almost 5.87% of India’s Population. Despite the growing body of literature on CSR in India, limited research has specifically examined longitudinal trends in CSR expenditure at the state level, particularly in Rajasthan. Existing studies primarily focus on national-level expenditure patterns or industry-specific analyses. Therefore, the present study seeks to fill this gap by providing a five-year empirical assessment of CSR expenditure trends, sectoral allocations, and changing priorities in Rajasthan from 2019–20 to 2023–24. Corporate Social Responsibility (CSR) in India, mandated under Section 135 of the Companies Act, 2013, has evolved from voluntary philanthropy to a statutory obligation for eligible companies. While national-level studies on CSR spending are abundant, state-specific longitudinal analyses remain scarce, particularly for resource-constrained states like Rajasthan. This study bridges that gap by empirically examining the patterns, trends, and determinants of CSR expenditure in Rajasthan over a five-year period from fiscal year 2019–20 to 2023–24. The primary objective is to assess whether CSR spending in the state has grown in real terms, aligned with statutory requirements, and diversified across sectors and districts. A secondary objective is to evaluate the impact of external shocks, notably the COVID-19 pandemic, on CSR allocation and utilization.
The study adopts a mixed-methods approach, combining quantitative analysis of secondary data from the Ministry of Corporate Affairs (MCA) CSR Portal, annual reports of the top 50 companies operating in Rajasthan, and district-level expenditure records. Descriptive statistics, trend analysis, and panel data regression models are employed to identify significant patterns.
The analysis covers key sectors such as education, healthcare, environment, rural development, and disaster relief.
Key findings reveal a compound annual growth rate (CAGR) of 11.2% in CSR expenditure in Rajasthan from 2019–20 to 2023–24, compared to the national average of 8.7%. However, this growth was uneven: the COVID-19 pandemic years (2020–21 and 2021–22) witnessed a 17% year-on-year increase in healthcare spending, while education and environment sectors saw a temporary decline. The top five districts—Jaipur, Udaipur, Jodhpur, Kota, and Bhiwadi—accounted for 62% of total CSR expenditure, indicating significant regional disparity. The study also finds that 34% of companies failed to meet the mandated 2% average net profit threshold, though compliance improved from 68% in 2019–20 to 82% in 2023–24. Sector-wise, healthcare (31%) and education (28%) dominated, followed by rural development (15%) and environment (12%). Notably, spending on skill development and women empowerment remained low at 6% and 4%, respectively.
In conclusion, while Rajasthan has made notable progress in CSR compliance and spending, the state suffers from spatial concentration, sectoral imbalance, and poor project execution. The COVID-19 pandemic acted as both a disruptor and a catalyst, redirecting funds to health infrastructure but exposing vulnerabilities in long-term planning. The study recommends the establishment of a state-level CSR monitoring authority, mandatory district-level CSR plans, and tax incentives for companies investing in underserved regions like Jaisalmer, Barmer, and Dausa. Future research should explore the socioeconomic impact of CSR interventions using household-level survey data and qualitative case studies of successful CSR models in Rajasthan. The findings hold implications for policymakers, corporate leaders, and civil society organizations aiming to maximize the developmental impact of mandated CSR spending in semi-arid and economically fragile states.

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