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15th IPR 2025: India’s Philanthropy Spending to Grow by 10-12% in Next 5 Years

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India’s spending on philanthropy to jump by 10 to 12% in next 5 yearsIn February 2025, Mumbai (Maharashtra) based Dasra, a venture philanthropy firm, and the United States of America (USA) based Bain & Company, Inc. released the 15th edition of the India Philanthropy Report (IPR) 2025.

  • The report highlighted that private funding in India’s social sector is projected to grow by 10% to 12% annually over the next five years, primarily driven by family philanthropy from Ultra-High-Net-Worth Individuals (UHNIs), High-Net-Worth Individuals (HNIs), and affluent individuals.

Note: UHNIs have a net worth of Rs 1,000 crore or more, HNIs have a net worth between Rs 200 crore and Rs 1,000 crore, and the “Affluent” category includes those with a net worth from Rs 7 crore to Rs 200 crore.

About India Philanthropy Report (IPR):

i.The IPR is an annual publication that provides insights into the philanthropic landscape in India.

  • The 1st edition of IPR was released in 2011.

ii.i.The report details how UHNIs, high-net-worth individuals HNIs, and affluent families are playing a significant role in supporting social causes.

ii.The report also emphasizes the influence of family-run businesses on Corporate Social Responsibility (CSR) and underscores the need for a stronger philanthropy infrastructure to support sustainable development, aligning with the vision of Viksit Bharat by 2047.

Key Highlights of IPR 2025:

i.Social Funding in FY24:

  • The total size of India’s social sector funding – covering areas such as education, healthcare, and gender equality – is approximately Rs 25 lakh crore (USD 300 billion) in the Financial Year 2023-24(FY24), accounting for 8.3% of India’s Gross Domestic Product (GDP).
  • Public spending made up 95% of the total funding, amounting to Rs 23 lakh crore, which includes schemes like the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) and the Pradhan Mantri Awas Yojana (PMAY). This is expected to rise to around Rs 45 lakh crore (USD 550 billion; 9.6% of GDP) by FY2029.
  • Private spending increased by 7% from FY23 to FY24, reaching approximately Rs 1.31 lakh crore (USD 16 billion).

ii.Family Philanthropy and CSR Contribution in FY 2024:

  • Families contribute around 40% of total philanthropy, which includes both personal giving and CSR initiatives from family-owned or family-run businesses.
  • Family-owned businesses contribute 65% to 70% of private-sector CSR spending each year, totaling around Rs 18,000 crore (USD 2.2 billion).
  • The top four family-run businesses: Tata, Ambani, Adani, and Birla, each contributed Rs 800 to Rs 1,000 crore to CSR in FY24. Other notable business families included in this category are the Munjals of Hero MotoCorp, the Piramal family of Piramal Enterprises, and the Kanwar family of Apollo Tyres, each contributing an average of Rs 20-25 crore.
  • With more strategic services and structured support for family philanthropy, an additional Rs 50,000 to 55,000 crore (USD 6 to USD 7 billion) in family philanthropy could be unlocked over the next five years.

iii.Contributions by UHNIs, HNIs, and Affluents in FY 2024:

On average, the UHNIs, HNIs, and Affluent private individuals gave Rs 5 crore, Rs 0.4 to 5 crore, and less than Rs 0.4 crore to philanthropy in FY24, respectively.

About Bain & Company, Inc. :
Chief Executive Officer (CEO) – Christophe De Vusser
Headquarters – Boston, Massachusetts, United States of America (USA)
Founded – 1973