Corporate Social Responsibility is one of the most important factors in the development of the economy in India. As corporations increasingly integrate CSR into their business strategies, it becomes essential to understand its macroeconomic impact to assess contributions to national growth. Although it is widely discussed in corporate governance, less research has been done on its direct impact on India’s economic development, especially in poverty alleviation, education, and infrastructure. Not much is known about the impact of this regulatory framework on corporate behaviour and the economic consequences. This study explores the contribution of CSR initiatives to the country’s economic goals through analysis of the engagement of corporations in major sectors such as rural development, healthcare, and education. The research reviews findings from a literature review and prominent corporations’ government reports in India to explore effective CSR as a sustainable pathway for economic growth. The study states that the mandatory CSR policy will promote firms’ activities, improving living standards and reducing income disparities, thus contributing to economic inclusivity. It also demonstrates that CSR can be a strategic tool to accelerate national development, with policies aligned to strengthen their role in India’s growth.