The Rise of Private Philanthropy
Corporate social responsibility (CSR), which is mandated at 2% of profits, has seen significant growth over the years. In 2021, CSR contributions accounted for 23% of total private giving. This trend is expected to continue, with CSR contributions projected to reach 32% of total private giving by 2026.
Family philanthropy has fluctuated. UHNWIs have reduced their giving since 2016, while HNWIs have seen modest growth. However, overall family philanthropy is expected to grow steadily at 13% annually through 2026, driven by increasing wealth and the rise of philanthropic entrepreneurs and younger philanthropists.
Individual giving, though mostly unorganised and impulsive, has also contributed to private philanthropy in India. This sector is growing at a modest rate of 5% per year. As awareness and infrastructure for organised retail giving improve, there is potential for further growth and impact.
Main Sectors and Causes
Education has emerged as the top beneficiary sector, with 90 philanthropists, including prominent names like Azim Premji, donating a total of INR 9,324 crore. Healthcare follows closely, with 84 donors contributing to the sector. Other key areas of philanthropic focus include disaster relief and rehabilitation, which saw a significant increase in donations of 240% in 2021.
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Notable Philanthropists
Several prominent philanthropists have made significant contributions to address wealth distribution in India. Azim Premji, founder and chairman of Wipro Ltd., is considered a role model for Indian philanthropy. In 2020, Premji donated an astounding $1.06 billion, surpassing other notable philanthropists. Shiv Nadar, founder of HCL Technologies, established the Shiv Nadar Foundation, which supports rural education and provides scholarships to underprivileged students. In 2020, Nadar donated $95 million through his foundation. Mukesh Ambani, chairman of Reliance Industries, has also been active in philanthropy. In 2021, Ambani donated $64 million to various causes.
Women in India Philanthropy
While men have historically dominated philanthropy, there has been a positive shift towards gender equality in giving. The EdelGive Hurun India Philanthropy List 2020 featured seven women philanthropists, with Rohini Nilekani of Infosys emerging as the most generous woman with a donation of $6.3 million. Anu Aga & family and Kiran Mazumdar Shaw of Biocon also made significant contributions.
Encouraging Young Philanthropists
The emergence of young wealth creators presents an opportunity to reshape philanthropy in India. Entrepreneurs like Binny Bansal, co-founder of Flipkart, have made significant contributions at a relatively young age. Bansal’s $710,000 commitment demonstrates the potential for young philanthropists to make a difference.
