Private philanthropy in India must grow by more than 25 per cent annually to prevent the country’s widening social sector funding deficit from deepening, even as overall giving is projected to rise steadily this decade, according to a new report by Bain & Company and Dasra. This shows a broader trend of social sector requirements expanding faster than the pace of philanthropic growth in recent years.
The ‘India Philanthropy Report’ estimates private philanthropy will reach Rs 1.43 lakh crore (USD 16 billion) in FY25, with growth accelerating at a compound annual rate of 9 to 11 per cent between FY25 and FY30. While this shows continued momentum, the firms warn that such expansion will be insufficient to offset a mounting structural funding gap in India’s social sector.
India’s total social sector funding has grown at a robust 13 per cent compound annual rate since FY20, doubling to about Rs 27 lakh crore (USD 310 billion) in FY25. It is projected to reach Rs 50 lakh crore (USD 570 billion) by FY30. Yet beneath this growth lies a funding shortfall of around Rs 16 lakh crore (USD 180 billion) in FY25, expected to widen to roughly Rs 18 lakh crore (USD 210 billion) by FY30.
Public spending continues to account for approximately 95 per cent of total funding, particularly in healthcare as policy momentum builds towards the 2.5 per cent of GDP target. Assuming current public spending trajectories remain unchanged, private philanthropy would need to grow at more than 25 per cent annually, more than double the forecast rate, to prevent the deficit from expanding further, the report said.
“The real question is not whether capital is available, but whether it’s structured to solve at scale,” Bhavini Malhotra, Partner at Bain & Company, said in the report. “India’s social sector has seen impressive funding growth as the report highlights, but the widening gap signals a deeper design challenge and the opportunity to channel the ongoing momentum to unlock private capital in ways that accelerate outcomes.”
She added that philanthropic capital and support infrastructure must grow in tandem to ensure that funding translates into sustainable, scalable and long-term impact.
Family Giving Drives Private Philanthropy
Indian families remain the backbone of private philanthropy, contributing around 42 per cent of total private giving through personal philanthropy and corporate social responsibility (CSR) from family-owned or run businesses, according to the report. Momentum is being led by ultra-high-net-worth, high-net-worth and affluent families, supported by rising wealth, increasing formalisation and episodic mega-donations.
While citing data from a report by the Centre for Social Impact and Philanthropy (CSIP) at Ashoka University, BW Businessworld ealier reported 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 CSIP 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.
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India Philanthropy Report also noted that families are increasingly adopting diversified operating models, balancing in-house programme implementation with scaled grantmaking portfolios. Women leaders and working professionals are reshaping philanthropic strategies by adopting intersectional approaches and championing gender, equity, diversity and inclusion.
About 63 per cent of families report women playing a leading role in shaping philanthropic efforts, while 49 per cent say intergenerational participation anchors giving decisions. First-generation wealth creators are also emerging as influential actors within the broader ecosystem, reflecting rapid domestic wealth creation, the report noted.
Neera Nundy, Co-founder and Partner at Dasra, said there remains significant untapped potential. “Indian families remain the backbone of private philanthropy, contributing through personal giving and family-business CSR. Persistent growth in leadership by women, Inter-gen, and Now-gen signals their enduring role in Indian philanthropy,” she said.
“With Rs 1.25 to 1.35 lakh crore in potential upside by FY30, unlocking the full contribution of families will depend on how quickly philanthropic infrastructure evolves to meet their needs,” she added.
CSR Growth Steady But Concentrated
CSR funding is expected to grow at 8 to 10 per cent, supported by gross domestic product (GDP) expansion, rising compliance and a widening corporate base crossing statutory contribution thresholds. Family-owned businesses dominate CSR, accounting for 65 to 70 per cent of private-sector CSR spending.
However, capital deployment remains highly concentrated. The top 2 to 3 per cent of families account for nearly half of all family-led CSR outlays. Geographically, allocations are disproportionately directed towards wealthier states such as Maharashtra, Gujarat and Delhi. The report identified a significant opportunity to redirect capital towards high multidimensional poverty index states, as well as historically underfunded and low-CSR regions, to drive greater equity and impact.
Also Read: When Funding Ends, Can Communities Sustain Social Change?
Beyond domestic family giving, the report highlighted diaspora capital, institutionalisation of family wealth and the emergence of Asian philanthropic hubs as inflexion points that could redefine India’s giving trajectory. The number of family offices in India has increased sevenfold from around 45 in 2018 to more than 300 in 2024, showing the rapid institutionalisation of wealth. As capital becomes more structured, philanthropy can act as a bridge between intergenerational wealth planning and long-term stewardship.
To realise this potential, the report called for stronger philanthropic infrastructure, including advisory ecosystems, formal giving vehicles and governance frameworks. Such structures would help families build cohesion, identity and legacy beyond individual lifetimes.
The Indian diaspora is also seen as a major growth lever. The diaspora base has expanded to approximately 34 million, with remittances growing at nearly 14 per cent annually between FY21 and FY25. Importantly, diaspora giving is evolving beyond cheque-book contributions to education and healthcare towards more trust-based and engaged models that combine funding with time, expertise and global networks.
Regional hubs such as Singapore, Hong Kong and the United Arab Emirates demonstrate enabling environments, institutional readiness and specialised talent that bolster philanthropic momentum, the report said. Drawing lessons from these hubs could help India build the infrastructure required to channel rising private wealth into social impact.
Despite strong growth in overall funding, the report concluded that India is at a formative institutional juncture. The next shift must be infrastructural rather than behavioural, it argues. While capital availability is increasing, particularly among wealthy families and the diaspora, the design of vehicles, governance and advisory systems will determine whether this capital can be mobilised at the scale required to close the funding gap.
Without a step-change in private giving growth to more than 25 per cent annually, India’s development funding deficit is set to widen over the coming decade, even as total social sector funding expands. The coming years will test whether India can translate its growing wealth base and philanthropic intent into durable institutions capable of advancing its long-term development ambitions, the report said. |
