India's social sector funding has grown at a steady rate of ~13% over the past five years and is estimated to have reached ~INR 25 lakh crore ($300 billion; 8.3% of GDP) in FY 2024. Primarily driven by public spending, accounting for 95% of total funding, it is projected to increase to ~INR 45 lakh crore ($550 billion; 9.6% of GDP) by FY 2029. Despite robust funding growth, the sector is ~INR 14 lakh crore ($170 billion) short of estimates by NITI Aayog. The gap is projected to increase to ~INR 16 lakh crore ($195 billion) by FY 2029.
Public spending has also grown ~13% annually over the past five years, reaching ~INR 23 lakh crore ($280 billion; 7.9% of GDP) in FY 2024. By FY 2029, it is projected to increase to ~INR 43 lakh crore ($525 billion; 9.1% of GDP), driven by higher growth in healthcare and moderate growth in education spending.
Private spending grew more moderately, with a 7% increase from FY 2023 to FY 2024, reaching ~INR 131,000 crore ($16 billion). However, private spending is expected to accelerate to 10%–12% growth over the next five years, largely driven by family philanthropy from ultra-high-net-worth individuals (UHNIs), high-net-worth individuals (HNIs), and affluent individuals.
Family philanthropy is transforming the giving landscape
Family giving accounts for approximately 40% of private philanthropy, with families contributing to India’s economic and social development through personal giving and corporate social responsibility (CSR) initiatives from family-owned/run businesses. We leveraged Dasra’s GivingPi network of more than 350 families to derive emerging insights on family philanthropy. We learned that families are reshaping the philanthropic landscape through:
Investing in underfunded and niche causes, with 40% of families supporting gender, equity, diversity, and inclusion (GEDI), 29% supporting climate action, and 39% of families aspiring to support ecosystem strengthening in the future
Strengthening philanthropy infrastructure by investing in collaboratives and building narratives, sectoral capacity, and institutions
Inclusive, diverse, and forward-looking giving approaches, with 55% of families having women-led philanthropy and 33% of families having Inter-generational and Now-generational givers anchoring philanthropy efforts
Professionalizing their giving, with approximately 65% of families having dedicated staff to manage their philanthropy portfolios; additionally, 41% of families prefer grant-making as their primary approach, while 23% integrate both grant-making and direct program implementation
Family-owned/run firms have been critical to India's growth story, championing corporate responsibility long before the 2014 mandate requiring CSR contributions. Family-owned/run businesses contribute 65%–70% of private-sector CSR spending annually, totaling approximately INR 18,000 crore ($2.2 billion), with the top 2% of family-owned/run firms contributing 50%–55% of the total family-owned/run businesses’ CSR contribution, highlighting the outsized role of a few key players.