Bihar is witnessing a sharp increase in Corporate Social Responsibility (CSR) funding, with the state’s annual CSR receipts rising from just ₹39.69 crore in 2014-15 to ₹456.12 crore in 2024-25. The more-than-tenfold increase has encouraged the state government to set an ambitious target of attracting ₹2,000 crore in CSR investments annually.
Despite the growth, Bihar continues to receive only a small share of India’s overall CSR spending. In FY2024-25, companies spent around ₹40,794 crore on CSR activities across India, of which Bihar received ₹456.12 crore—approximately 1.12% of the national total.
The state government is now attempting to address the structural and institutional challenges that have historically limited CSR investments in Bihar.
CSR Funding Has Increased Significantly
Bihar’s CSR receipts have increased substantially over the past decade.
In 2014-15, companies contributed only ₹39.69 crore towards CSR activities in the state. By 2022-23, the figure had reached ₹247.93 crore, followed by ₹261.62 crore in 2023-24.
The amount rose sharply to ₹456.12 crore in 2024-25.
| State | 2022-23 | 2023-24 | 2024-25 |
|---|---|---|---|
| Bihar | ₹247.93 cr | ₹261.62 cr | ₹456.12 cr |
| Maharashtra | ₹5,723.29 cr | ₹6,283.97 cr | ₹8,630.80 cr |
| Gujarat | ₹2,066.67 cr | ₹2,780.14 cr | ₹4,549.10 cr |
| Karnataka | ₹2,061.40 cr | ₹2,328.53 cr | ₹3,395.43 cr |
| India | ₹31,183.28 cr | ₹35,917.98 cr | ₹40,794 cr |
Maharashtra, Gujarat and Karnataka continued to account for the largest CSR inflows among states during the period.
Why Bihar Has Historically Received Less CSR Funding
Bihar’s relatively small share of CSR expenditure has been attributed to several structural challenges.
Companies often prefer implementing CSR projects close to their manufacturing facilities, offices or major industrial hubs, where they can monitor projects more easily and observe their impact.
The relatively smaller industrial base in Bihar has therefore limited the presence of large corporate CSR programmes.
Other concerns include:
- Lack of reliable implementing organisations
- Limited availability of well-developed projects
- Monitoring and impact-measurement challenges
- Concerns regarding transparency
- Lack of clarity around suitable CSR opportunities
Companies are generally more willing to allocate CSR funds when they can clearly identify the project, implementation partner and measurable impact.
Bihar Creates Dedicated CSR Mechanism
The state government has taken several steps to make Bihar more attractive for corporate CSR investments.
A 21-member Bihar CSR Society, headed by the Chief Secretary, has been established to monitor CSR projects and improve transparency.
The government has also identified 13 priority areas where CSR funding can be directed.
These include:
- Education
- Healthcare
- Skill development
- Sanitation
- Environment
- Women empowerment
- Other social-development initiatives
The state has also made registration on its dedicated CSR portal mandatory for NGOs seeking CSR funding.
The objective is to create a more organised ecosystem where companies can identify credible implementing organisations and projects while ensuring that funds are used transparently.
Government Seeks ₹2,000 Crore Annually
With CSR funding already increasing significantly, the Bihar government is now targeting ₹2,000 crore in annual CSR investment.
The government believes that the development of new industrial and urban centres could help achieve this target.
As more companies establish manufacturing facilities and business operations in Bihar, the state expects CSR spending to increase around these emerging industrial clusters.
At the same time, the government is attempting to build mechanisms that can attract CSR funding even in areas where companies do not have a direct operational presence.
National CSR Spending Continues to Grow
The increase in Bihar’s CSR receipts comes amid continued growth in CSR spending across India.
National CSR expenditure increased from ₹31,183.28 crore in 2022-23 to ₹40,794 crore in 2024-25.
However, Bihar’s share remains relatively small. In FY2022-23, the state’s share was below 1% of national CSR expenditure, while it increased to approximately 1.12% in FY2024-25.
This indicates that Bihar’s CSR funding is growing faster than its earlier base, but the state still has significant room to increase its share.
CSR Could Support Bihar’s Development Goals
The government sees CSR as an additional source of funding for development priorities such as education, healthcare, skills, sanitation and environmental sustainability.
Improving the credibility of implementing agencies, strengthening monitoring mechanisms and creating a pipeline of well-designed projects could help companies deploy larger amounts of CSR capital in the state.
The emergence of new industrial and urban centres could further strengthen this ecosystem by bringing companies closer to potential CSR beneficiaries.
If Bihar can successfully build this institutional framework and attract a larger share of India’s growing CSR expenditure, the state’s ₹2,000 crore annual target could significantly expand private-sector participation in social and sustainable development.
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