The wealthy are not as reviled by the general public as in many other countries. This is a crucial moment for Indian funders to take ownership of our development narrative and make the country the world’s third-largest economy…
Recently, I participated in four unusual philanthropy-related events over just two days in Mumbai. Each one was well-attended, well-executed and well-liked. The diversity was incredible. There were men and women philanthropists from three generations, foundation heads, business leaders, government spokespersons, politicians, foreign invitees, intermediary organisation representatives, researchers and academics, and civil society experts. There were sharp presentations, deep listening and sharing with a cocktail of hope and despair at the state of the world.
In my three decades in the civil society/philanthropy space, I have never seen anything quite like it.
It gave me pause to think. And to celebrate that we are at the cusp of a big wave in Indian philanthropy. This has long been coming, but there is now a convergence of many forces that promises to reshape the landscape of giving.
We all know that there has been a strong culture of giving across all communities and all levels of our samaaj across centuries. But since liberalisation, a new form of giving began to emerge among the newly wealthy, and the old wealthy with new wealth. Yet, it was restrained by some uncertainty about the future. Today, with the sustained rally in the stock markets, and the increasing opportunities for wealth creation in a booming economy, the rich are finally feeling secure enough about their wealth to think of larger issues. I now believe that India’s wealthy elite is turning a collectively serious mind to giving more, better and faster.
And what timing! A report by AIP-BCG titled ‘Wealth with Purpose: A Report on Private Indian Philanthropy’ suggests that if ultra-high net worth (UHNI) individuals would channel just 5 per cent of their annual incremental wealth, they could contribute over Rs 75,000 crores annually, which is five times the total CSR spend in 2023.
Perhaps no time has been as critical for the country’s wealthy to step up. According to a recent report published by Niti Aayog, despite a robust annual growth of around 13 per cent in social sector spending, we will still fall short on the targets needed to meet the 17 Sustainable Development Goals (SDGs) goals by 2030.
At the same time, foreign funding to the social sector is receding. Thousands of organisations have lost their FCRA licences, which allows them to receive such money. Some international donors are shutting down their India operations. Many others would love to fund in India, especially on climate mitigation and adaptation, but their voice and motives are seen sometimes as inimical to India’s needs. But that means we are turning away hundreds of millions of dollars. Indian philanthropy has a chance to fill some of that gap. Indian funders can take ownership of our development narrative; we can help craft approaches suited to our context and aspirations.
The wealthy in India are not as reviled by the general public as in many other countries, where the growing inequality has unleashed societal conflict, and a resentment towards the rich. In India, people still believe that they too can climb the economic ladder. There is hope and optimism. Recently, millions of people vicariously enjoyed the Ambani wedding celebrations. There was as much pride in their achievements as there was criticism of the use of wealth.
But things can turn. It is up to the wealthy to show the country why wealth creation has been a net positive in India. No society or country will tolerate for too long the continued accumulation of wealth in a few hands, unless that private wealth works and is seen to work for the public good.
The elite can sense the consequence of extreme inequality. It is beginning to respond systematically. The Dasra-Bain India Philanthropy Report 2024 highlights a shift from traditional, faith-based giving to more strategic and impactful engagements led by young, first-generation wealth creators.
Systems thinking is the new mantra. Though it is incredibly hard to actually move the levers on systems change, the very fact that philanthropy is putting in serious risk capital and creating a shared vocabulary around it is both encouraging and exciting.
There is also a clear tilt towards more collaboration among Indian givers. My husband Nandan and I are part of several local and global giving collaboratives, with diverse models such as pooled funding, co-funding and direct funding for exponential change. Funders are also showing more curiosity and sharing more knowledge than ever before. The silos have broken down.
For example, the India Climate Collaborative (ICC), co-founded by several donors including myself, and incubated by the Tata Trusts, is moving strategically to increase Indian investments in the climate sector, in both mitigation and adaptation. It convenes samaaj, sarkaar and bazaar to deepen research, build capacity and create investable opportunities. Overall, India’s fund flows towards climate action have grown 2.3 times during 2017-23. Best of all, new funders like Mirik Gogri are entering the space with bold new ideas.
Intermediary organisations such as Dasra, Sattva and Accelerate Indian Philanthropy (AIP) have also been very effective in opening up minds, hearts and pockets. Decades of patient handholding is finally paying off. For example, Dasra’s GivingPi has more than 300 families signed up for their philanthropy journey, and are willing to invest in under-invested areas such as gender and sports. Family giving was up 15 per cent last year.
At a time when civil society in India is facing multiple crises, the new philanthropic engagement could not be more critical. More trust still needs to be built on all sides, especially with the government. But my Mumbai visit has convinced me that this too can be worked upon.
If we want India to become the world’s third-largest economy, it has to also be the world’s most equitable one. Otherwise, we will not get the peace dividend from economic growth.
Philanthropy done right can tilt back the scales from lopsided wealth creation to equal opportunities for all. The wealthy seem readier to be rainmakers.
