According to report, social sector spending in India stands at 6–7% of GDP annually, combining public and private contributions.
Key Highlights of Report
- India’s social sector funding: Reached around ₹25 lakh crore in FY24 with 13% CAGR over last five years. It is projected to reach ₹ 45 lakh crore in FY29.
- Rising economy, Indian diaspora and structural reforms are key factors behind this growth.
- Key concerns:
- Low private contribution: With only 5% of the total spending.
- Private sector contributions came largely from family philanthropy from high-net-worth individuals (HNIs), and CSR. E.g. Heritage Project (2018) by Radha Goenka, Pride Fund (2025) by Godrej industries.
- Funding Gap: Fund flow into India’s social sector fell short of NITI Aayog’s recommendation for 2023-24 by about ₹14 lakh crore.
- NITI Aayog recommends social sector funding to be 13% of GDP.
- Low private contribution: With only 5% of the total spending.
Significance of philanthropy as a development tool in India
- Bridging Funding Gaps: Supplement critical budgetary support given by governments.
- Addressing Development Gaps: Such as poverty alleviation, education, and healthcare access.
- E.g. Azim Premji Foundation enhances rural public education.
- Catalyzing Innovation: Tech-driven initiatives like digital literacy programs/healthcare startups.
- E.g. Bill & Melinda Gates Foundation focus on sanitation innovations aligning with Swachh Bharat Mission.
Key Initiatives Promoting Social Sector Funding by Private Sector
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