India Philanthropy Report 2025: Trends in Giving to the Social Sector

The report said that aggregate social sector spending in India, including both public and private contributions, was 6–7% of GDP per year.

Important Points of the Report

Financing to the social sector in India: grew at 13% CAGR over the last five years to about 25 lakh crore in FY24. In FY29, it is expected to reach 45 lakh crore.

The Indian diaspora, the economy, and structural reforms are the key drivers.

Principal issues:

Low private contribution: 5% of total expenditure Most of the private sector contribution was in the form of CSR and family philanthropy by HNIs. e. g. Godrej Industries’ Pride Fund (2025) and Radha Goenka’s Heritage Project (2018).

The funding gap The amount flowing into the country’s social sector was roughly 14 lakh crore less than what NITI Aayog had recommended for 2023–2024.

Philanthropy's importance as a tool for development in India

• Boosting Government Funding: Build on the important financial support provided by governments.

• Addressing Development Gaps: such as health care, education and poverty reduction.

• Azim Premji Foundation, for example, improves public education in rural areas

• Technology-focused projects like digital literacy programmes and health care startups are driving innovation.

• For instance, the Swachh Bharat Mission resonates with the Bill & Melinda Gates Foundation’s focus on sanitation innovations.

The Companies Act 2013 obliges companies to make a contribution of 2 per cent of their average net profits to CSR, one of the main measures encouraging the private sector to fund CSR in the social sector.

An association of top nonprofits in India that are working toward India’s development goals is called the India Philanthropy Alliance (IPA). India’s Social Stock Exchange (SSE): A type of stock market platform.