New Delhi, March 22 (SocialNews.XYZ) Total private philanthropic funding in India is estimated to grow at approximately 12 per cent annually in the next five years, riding on a robust growth in the three main segments -- corporate social responsibility, family philanthropy (ultra-high-net-worth individuals and high-net individuals), and retail, according to a India Philanthropy Report 2022 (IPR), co-created by Bain & Company and Dasra.
With Covid-19 pandemic pushing more than 200 million Indians into poverty coupled with State finances negatively affected because of the pandemic and government debt increasing, the private philanthropy will play a crucial role in bridging the funding gap.
India's total social sector funding has seen a 12 per cent annual growth over the past five years. In fact, FY21 witnessed a sharp increase of 20 per cent year-on-year.
CSR, family philanthropy and retail giving cumulatively contribute about 84 per cent of the total private philanthropic capital in India.
"However, gaps remain. With the total supply of funds at an average 7 per cent of GDP in recent years (8.3 per cent in 2021, however), India is still short of NITI Aayog's estimation of the total annual funds needed to achieve its UN SDG commitments by 2030," the report said.
Economic indicators establish that the country's economic trajectory has been strong, however, its development story can hardly be called inclusive, said Radhika Sridharan, Partner at Bain & Company.
"Progress and access to opportunities have missed the most vulnerable geographies and populations. It is imperative that the pace of action accelerate towards inclusive and sustainable development -- now more than ever."
Riding on rapid economic growth, formalisation, and more companies coming under its umbrella, CSR contributions are expected to grow at 19 per cent annually, with its share expected to reach about 32 per cent of total private giving by FY26.
CSR remains one of a kind with India being the only country mandating that corporations fulfil their social responsibilities.
Source: IANS
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