Philanthropy in India

February 28, 2025

The landscape of private philanthropy in India is evolving. Recent reports indicate increase in funding from high-net-worth individuals (HNIs) over the next five years. This growth is projected to be between 10% and 12% annually. As of FY24, the total funding for the social sector in India is approximately ₹25 lakh crore, of which private funding is around ₹1.3 lakh crore.

Current State of Philanthropy

In FY24, public spending constituted 95% of total social sector funding. This includes major government schemes such as the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) and the Pradhan Mantri Awas Yojana. Private philanthropy, while growing, remains a small fraction of total funding. Family philanthropy accounts for about 40% of private contributions.

High-Net-Worth Individuals and Their Contributions

Data shows that the rate of giving among Indian ultra-high-net-worth individuals (UHNIs) is lower than their counterparts in the United States and the United Kingdom. UHNIs in India contribute between 0.1% and 0.15% of their wealth to philanthropy. In contrast, UHNIs in the US give around 1.2% to 2.5%. The top four family-owned firms in India—Tata, Ambani, Adani, and Birla—account for about 20% of family-run corporate social responsibility (CSR) spending.

Projections for Future Philanthropy

The growth in the number of HNIs and affluent givers is expected to drive future increases in private funding. The report anticipates that the population of upper-mid and high-income households will rise by 2030. CSR spending is also projected to grow at a similar rate of 10% to 12%. Compliance with CSR regulations is increasing, with more firms becoming compliant each year.

Focus Areas for Philanthropy

Philanthropic contributions in India are increasingly directed towards gender equity, diversity, and climate action. Approximately 40% of family donations target initiatives related to gender and inclusion, while 29% focus on climate issues. Notably, many philanthropic efforts are led by women, with 55% of families having women at the forefront of these initiatives.

The Role of Family Offices

Family offices, which manage the wealth of HNIs, are becoming increasingly prevalent. Their numbers grew from 2018 to 2023. These offices can play important role in enhancing philanthropic contributions by providing structured services for managing and channelling funds into the nonprofit sector.

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