India’s philanthropy boom: Family wealth, diaspora fuel social sector surge
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India's social sector funding has grown at a steady rate of 13% over the past five years and is estimated to have reached ₹25 lakh crore ($300 billion; 8.3% of GDP) in FY 2024, according to the recently released Bain & Dasra India Philanthropy Report 2025.
Social sector funding is primarily driven by public spending, which accounts for 95% of total funding, and is projected to increase to ₹45 lakh crore ($550 billion; 9.6% of GDP) by FY 2029, the report notes. However, spending falls short by ₹14 lakh crore ($170 billion) compared to estimates by NITI Aayog, with the gap projected to widen to ₹16 lakh crore ($195 billion) by FY 2029.
The growth in public spending will be fuelled by higher investments in healthcare and moderate increases in education spending, the report states.
Private spending grew more moderately, rising by 7% from FY 2023 to FY 2024, reaching ₹131,000 crore ($16 billion). However, private spending is expected to accelerate to a 10%–12% growth rate 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, the report predicts.
According to the report, family giving—through personal contributions and corporate social responsibility (CSR) initiatives from family-owned or family-run businesses—accounts for approximately 40% of private philanthropy. It further notes that family philanthropy is increasingly investing in underfunded and niche causes, with 40% of families supporting gender, equity, diversity, and inclusion (GEDI), 29% supporting climate action, and 39% aspiring to support ecosystem strengthening in the future.
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The report highlights a sevenfold increase in family offices, growing from 45 in 2018 to 300 in 2024, driving momentum toward institutionalized, multi-generational, and value-driven philanthropy. “Currently, 40% of philanthropy support organizations cater to families. More strategic services and structured support for family philanthropy could unlock ₹50,000–55,000 crore ($6–$7 billion) in additional family philanthropy over the next five years,” the report states.
The report also underscores the role of the Indian diaspora, which has expanded from 18 million in 2019 to 35 million in 2024, along with their increasing wealth, in boosting social sector funding. Stating that India is emerging as a global leader in developing scalable, cost-effective solutions to address social challenges, the report emphasizes that family philanthropists are uniquely positioned to drive global impact by supporting frugal innovation by India's dynamic nonprofits.