Corporate Social Responsibility (CSR) is a significant medium through which businesses play a pivotal role in rural development. This study explores CSR spending patterns in the Fast-Moving Consumer Goods (FMCG) sector and assesses the impacts of various key initiatives taken by companies for sustainable rural development. This research identifies the challenges that hinder the implementation of effective CSR programs in rural areas. To address the stated objective of the study, ITC Ltd and Hindustan Unilever Limited (HUL) has been selected purposively. CSR reports and their impacts on the two leading FMCG companies were explored. This study reveals the significant impacts of the CSR initiatives of the two leading FMCG giants in India. However, challenges persist, and strategies to overcome these hurdles have been proposed. The findings offer actionable recommendations to FMCG giants in effectively implementing CSR initiatives in rural areas.