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India’s Rs 540 Billion Giving Economy Is Vast, Informal And Religion-driven

deltin55 1970-1-1 05:00:00 views 49
India’s culture of giving is broad-based, decentralised and rooted as much in religion and community obligation as in formal development goals. Far from being driven only by corporate social responsibility (CSR) budgets or ultra-wealthy donors, the country’s philanthropic landscape rests on millions of small, routine acts, cash handed over at places of worship, food distributed locally, and time volunteered within neighbourhood networks.
Produced by the Centre for Social Impact and Philanthropy (CSIP) at Ashoka University, the 'How India Gives 2025–26’ report estimates that India’s everyday household giving ecosystem is worth approximately Rs 540 billion annually, showing its significant but often under-recognised role within the country’s broader philanthropic landscape alongside CSR and institutional philanthropy.
According to the report, about 68 per cent of respondents reported giving in some form, which includes cash donations, in-kind contributions and volunteering. In-kind donations, such as food, clothing or other material support, are the most common at 46 per cent, closely followed by cash donations at 44 per cent. Volunteering is reported by 30 per cent of respondents, indicating a notable presence of non-monetary engagement in social causes.
“The report brings visibility to a form of generosity that has always existed in India but is rarely measured. Everyday giving, through in-kind support, cash contributions and volunteering, is foundational to India’s development story. The opportunity ahead lies in strengthening the bridges between everyday generosity and organised social impact," stated Jinny Uppal, Director and Head, CSIP.
Based on 7,225 quantitative surveys and 20 in-depth telephone interviews across 20 states, the findings highlight a clear insight. Philanthropy in India goes beyond cash. Donations of goods and contributions of time are deeply embedded in community life, especially in rural areas where social bonds are strong.
Religion Influences India’s Giving Patterns
Where giving flows also reveals structural characteristics of the ecosystem. According to the report, 46 per cent of respondents give to religious organisations, while 42 per cent give directly to beggars. This distribution shows the centrality of faith institutions and immediate, visible need in shaping donation decisions.

India’s giving patterns mirror the character of a society that is both deeply religious and rapidly modernising. Surveys by the Pew Research Centre have consistently found high levels of religious observance across communities in India, including Hindus, Muslims, Sikhs, Christians and others, cutting across income and education levels.
Amid communal tensions in some parts of the country, this religiosity coexists with expanding urbanisation and widespread digital adoption, particularly in metropolitan centres. In such a context, donations to temples, mosques, gurdwaras and churches remain embedded in social practice, even among upwardly mobile urban households.
“The Rs 540 billion in annual household giving estimated by this study is both encouraging and instructive. It tells us that generosity is widespread, but it also reveals how little of this flows to organised, non- religious institutions. For India’s development journey, the opportunity lies in respecting the culture of everyday giving while making it convenient, empathetic and impactful,” said Praveen Khanghta, Chief Operating Officer (COO), The Convergence Foundation.
Direct almsgiving, meanwhile, shows the visibility of poverty in dense cities. According to the World Bank, the extreme poverty rate has fallen sharply over the past decade. Using the updated international poverty threshold of USD 3.00 per day (2021 PPP), the share of Indians living in extreme poverty declined to about 5.3 per cent in 2022–23 from 27.1 per cent in 2011–12, showing a reduction of nearly 270 million people out of extreme poverty during that period.

However, few media reports have urged caution in interpreting headline poverty reductions, arguing that official estimates can mask deeper deprivation and methodological limitations. Many questioned about how poverty lines are defined, how consumption surveys capture real living conditions and whether aggregate statistics show the lived experience of vulnerable groups.

Notably, the government currently provides free foodgrains to about 80 crore beneficiaries under the National Food Security Act framework, including the extended Pradhan Mantri Garib Kalyan Anna Yojana, effectively covering nearly two-thirds of the population based on Census projections.

Anatomy Of India’s Household Donors







Awareness pathways show this proximity effect. In-person canvassing accounts for 23 per cent of how respondents learn about giving opportunities, while social media accounts for 15 per cent. Despite the growth of digital platforms and online campaigns, face-to-face engagement remains a leading driver of philanthropic participation.
One of the report’s most analytically significant contributions is its segmentation of donors into four archetypes, based on education levels and monthly per capita consumption expenditure (MPCE), linked to National Sample Survey (NSS) data. The largest segment, termed “Grassroot Givers”, represents 55 per cent of the population. These donors are typically rural and motivated by faith or community ties. Their giving may be modest in monetary terms, but it is widespread and socially embedded.
“Practical Givers”, accounting for 14 per cent, are largely urban with limited education but a relatively stable capacity to give. Their philanthropy tends to focus on immediate and visible needs. “Aspirational Givers”, comprising 25 per cent, are generally rural and educated but financially constrained. Their intent to contribute may exceed their financial means, reflecting aspirations shaped by education and social mobility.
The smallest segment, “Well-off Givers”, makes up 6 per cent of the population. This group consistently donates both cash and in-kind support and shows higher engagement with social media channels. This segmentation challenges a simplistic assumption that giving scales directly with wealth.
The intersection of faith, visibility and money is increasingly shaped by digital media. In recent years, social platforms have amplified a new generation of religious influencers, including children, young adults and established spiritual figures, whose devotional messaging often coexists with carefully curated, aspirational lifestyles.
Periodic public scrutiny has also emerged around self-styled godmen and godwomen whose visible displays of wealth, luxury travel or premium consumer goods appear to contrast with ascetic religious imagery. Such debates have fuelled wider conversations about the commercialisation of spiritual authority. In a country where religious institutions command a significant share of household giving, the rise of personality-led devotional platforms adds another layer to how trust, influence and financial flows are shaped.
While higher-income households do contribute, a majority of donors come from segments where faith, social norms and community networks play a defining role. Education and geography intersect with income to shape patterns of generosity. Interestingly, World Inequality Lab stated that the income divide remains stark, with the richest 10 per cent capturing 58 per cent of total earnings while the bottom half takes home just 15 per cent.
Notably, India is the world’s fastest-growing economy with a per capita income of about USD 2,480, ranking 143rd among 194 countries, still lower than that of the top five global economies. A CareEdge Ratings report in 2025 revealed that India’s gross domestic savings fell to 30.7 per cent of gross domestic product (GDP) in FY24, down from 32.2 per cent in FY15, driven by a sustained decline in household savings.
From Generosity To Coordinated Impact
The report situates these findings within a broader global context of everyday philanthropy, arguing that such grassroots giving constitutes a significant, though often under-recognised, resource for development. In a country facing persistent gaps in health, education and livelihoods, household-level giving can complement state interventions and corporate initiatives.
However, the predominance of religious and informal giving also raises questions about coordination and long-term impact. Funds routed primarily to faith institutions or given directly to individuals may not always align with structured development objectives. The challenge, as implied by the report’s analysis, lies not in stimulating generosity, which is already widespread, but in building bridges between informal giving traditions and formal social sector organisations.
The 30 per cent volunteering rate adds another dimension. Time, labour and skills represent valuable social capital, particularly in rural and lower-income contexts. Structured pathways to harness volunteer engagement could expand the effectiveness of community-based interventions without relying solely on financial transfers.
Digital transformation is visible but gradual. While social media accounts for 15 per cent of awareness overall, the report noted greater digital engagement among Well-off Givers. As digital payments and online fundraising platforms expand, especially in urban India, formal civil society organisations may find new avenues to tap into household philanthropy. Yet the continuing importance of in-person outreach suggests that trust and personal contact remain foundational.
Meanwhile, India’s philanthropic story is less about episodic largesse and more about habitual, distributed generosity. The task ahead lies in connecting these millions of acts into a more coherent architecture of social support, one that respects tradition while expanding effectiveness.
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