Corporate Social Responsibility (CSR) has emerged as a significant development strategy in India following the implementation of Section 135 of the Companies Act, 2013. While the legislation mandates corporate spending on socially beneficial activities, it does not prescribe the geographical allocation of CSR funds, leading to growing concerns about regional imbalances in CSR distribution. This study examines inter-state disparities in CSR spending across India and investigates whether CSR allocation is economically concentrated, particularly in states with higher Gross State Domestic Product (GSDP). Using state-wise CSR expenditure data from the National CSR Portal and GSDP figures from the Ministry of Statistics and Programme Implementation (MOSPI) and the Reserve Bank of India, the analysis employs descriptive statistics, inequality measures, and correlation techniques. The coefficient of variation demonstrates a clear deviation from equitable distribution. Pearson’s and Spearman’s correlation analysis further confirms a strong and statistically significant positive relationship between state GSDP and CSR spending, suggesting that CSR flows are closely aligned with economic activity rather than developmental necessity. These results imply that CSR in India, instead of promoting balanced regional development, tends to reinforce existing economic disparities. The study highlights the need for more equitable geographic deployment of CSR resources, particularly toward economically weaker and socially vulnerable regions.