Economic think tanks predict India to be the world’s largest economy by 2050. This would require India to accelerate its industrial and infrastructure development. Industrialization based economic development will have a negative impact on the environment and hence sustainable development. Such steps could affect the social and environmental bottom line of the national economy. In the present globalised environment, Corporate Social Responsibility (CSR) is considering as a tool of sustainable development. Worldwide people, international organizations, states, organizations of civil societies are involved to act their role to restore the ecosystem of the earth. Required logical parameters supported with legal provisions are setting up for the corporate world. In financial term, corporate sectors are bounded to expend a certain percentage of their average profit on safety of environment and activities that are essential for the improvement of life standard of society like healthcare, water and sanitation, education, plantation, and other facilities which are essential for the rural development. In the present scenario, CSR practices are being considered as legal responsibility of corporate world. The aim of this paper is to highlight the importance of CSR in globalised environment. The paper also attempts to emphasize that Corporate Social Responsibility is essential for economic development as well Environmental Sustainability. 
 
KEYWORDS:  CSR, Sustainable Development (SD), Impact of CSR on SD. 

Introduction India is slated to be the world’s biggest economy by 2050 (ARMSTRONG, 2012). Such growth will come from rapid industrialization. India’s economic growth has not translated to inclusive development for a large part of its population. The country is currently in the process of balancing its economic ambition with development that is sustainable and inclusive. This paper explores the linkage between Corporate Social Responsibility (CSR) and sustainable development (SD) in emerging economies like India. In 2010, the Indian Government made CSR mandatory for more than 200 public sector undertakings (PSU), asking them to spend, on an average, 2% of their net profit on CSR. This guidelines, further revised in April, 2013, links CSR with SD. In August 2013, the top 1% of all listed Indian companies were mandated to spend 2% of their net profit on CSR. It has long been recognized that economic activities adversely impact the environment and society. Natural resources are depleted, environment polluted, ecosystems destroyed, and local villages and communities are displaced by the activities of economic development. These economic activities are badly affecting the natural phenomena of the glorious world. Industrial units of corporate bodies are taking ownership on natural resources and other means of public undertakings via the channel of disinvestments and other government policies. They are using them illogically in their own interest and for the maximum benefit of their stakeholders. But bad effects of these activities are creating pollution like air, water, noise etc. and scarcity of glorious natural resources that are taking place of natural calamities. Thus, these activities of corporate bodies must be liable and responsible for the bad effects of the entire chain from theirsource in natural resources to the final disposal as end products.