Philanthropic spending by the country’s super-rich individuals dropped by 5 per cent in the financial year 2021-22, despite a 9.2 per cent increase in their wealth, a report said. Showing persisting inequities in India, a report by consulting firm Bain & Company and Dasra said that excluding Azim Premji, philanthropic spending by ultra-high-net-worth individuals (UHNI) contracted by five per cent from FY21 despite a nine per cent increase in cumulative net wealth in FY22.
India Philanthropy Report 2023 said, “Excluding contributions by Azim Premji, UHNI giving has contracted by 5 per cent from FY21 despite a 9 per cent increase in cumulative UHNI net wealth in FY22. Overall UHNI philanthropic giving has dropped to Rs 4,230 crore from Rs 11,811 crore in FY21.”
The report also said that private foreign giving dipped by about 3 per cent to Rs 15,000 crore in FY22 as compared to the contributions in the year-ago period. The report said, “Private foreign giving dipped by about 3 per cent from FY21 to Rs 15,000 crore in FY22; contribution to overall giving remains restrained at 14 per cent compared to 15 per cent in FY21 and 21 per cent in FY17.”
According to the report, overall, private giving remained flat in FY22 at Rs 1.05 lakh crore compared to FY21.
Corporate social responsibility (CSR) spending grew during the fiscal year on the back of the government mandate for top countries to donate towards social causes, the report added.
According to the report going forward, private philanthropic giving in India is estimated to grow at 11 per cent per annum and reach 1.86 lakh crore in FY27.
In the last five years, total social sector expenditure in India has seen an annual growth of 15 per cent per annum from $135 billion (Rs 11.1 lakh crore) in FY17 to $276 billion (Rs 22.6 lakh crore) in FY22, the report said.
Despite the growth, India is still significantly short of NITI Aayog’s estimation of the total annual funds needed at about 13 per cent of the GDP as against 9.6 per cent in FY22 to achieve UN SDG (sustainable development goals) commitments by 2030, the report said.
“With an expanding budget deficit, higher debt burden because of the pandemic, and increased crude oil prices, government finances are likely to be restricted,” it said,
“India’s economic growth remains robust, with a GDP growth rate of 8.7 per cent in FY 2022. However, despite strong GDP growth, a burgeoning middle class, and striving to become a $5 trillion economy by FY25, multi-dimensional inequalities continue to persist in India. As the country emerges from the Covid-19 pandemic, it is critical that ecosystem stakeholders invest in strengthening the philanthropic infrastructure for building community resilience,” the report added.