India Philanthropy Report 2025: The evolving role of families in India's development story

India's social sector funding has grown at a steady rate of ~13% over the past five years and is estimated to have reached ~INR 25 lakh crore ($300 billion; 8.3% of GDP) in FY 2024. Primarily driven by public spending, accounting for 95% of total funding, it is projected to increase to ~INR 45 lakh crore ($550 billion; 9.6% of GDP) by FY 2029. Despite robust funding growth, the sector is ~INR 14 lakh crore ($170 billion) short of estimates by NITI Aayog. The gap is projected to increase to ~INR 16 lakh crore ($195 billion) by FY 2029.

Public spending has also grown ~13% annually over the past five years, reaching ~INR 23 lakh crore ($280 billion; 7.9% of GDP) in FY 2024. By FY 2029, it is projected to increase to ~INR 43 lakh crore ($525 billion; 9.1% of GDP), driven by higher growth in healthcare and moderate growth in education spending.

Private spending grew more moderately, with a 7% increase from FY 2023 to FY 2024, reaching ~INR 131,000 crore ($16 billion). However, private spending is expected to accelerate to 10%–12% growth 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.

Family philanthropy is transforming the giving landscape

Family giving accounts for approximately 40% of private philanthropy, with families contributing to India’s economic and social development through personal giving and corporate social responsibility (CSR) initiatives from family-owned/run businesses. We leveraged Dasra’s GivingPi network of more than 350 families to derive emerging insights on family philanthropy. We learned that families are reshaping the philanthropic landscape through:

• Investing in underfunded and niche causes, with 40% of families supporting gender, equity, diversity, and inclusion (GEDI), 29% supporting climate action, and 39% of families aspiring to support ecosystem strengthening in the future
• Strengthening philanthropy infrastructure by investing in collaboratives and building narratives, sectoral capacity, and institutions
• Inclusive, diverse, and forward-looking giving approaches, with 55% of families having women-led philanthropy and 33% of families having Inter-generational and Now-generational givers anchoring philanthropy efforts
• Professionalizing their giving, with approximately 65% of families having dedicated staff to manage their philanthropy portfolios; additionally, 41% of families prefer grant-making as their primary approach, while 23% integrate both grantmaking and direct program implementation

Family-owned/run firms have been critical to India's growth story, championing social responsibility long before the 2014 mandate requiring CSR contributions. Family-owned/run businesses contribute 65%–70% of private-sector CSR spending annually, totaling approximately INR 18,000 crore ($2.2 billion), with the top 2% of family-owned/run firms contributing 50%–55% of the total family owned/run businesses’ CSR contribution, highlighting the outsized role of a few key players.

Growing need to strengthen philanthropy support infrastructure

Growth in families’ wealth is reflected through a sevenfold growth in family offices from 45 in 2018 to 300 in 2024, which can build momentum towards 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 INR 50,000-55,000 crore ($6–$7 billion) in additional family philanthropy over the next five years.

Apart from unlocking greater domestic philanthropic capital, the expansion of the Indian diaspora from 18 million in 2019 to 35 million in 2024, accompanied by their increasing wealth, offers significant potential for growing social sector funding. However, contributions from the diaspora may be hindered by a lack of awareness and the sector’s nascent infrastructure. Philanthropy support organizations can play a key role in bridging these gaps.

India is emerging as a global leader in developing scalable, cost-effective solutions to address social challenges. Family philanthropists—with their patient capital and long-term vision—are uniquely positioned to drive global impact by supporting frugal innovation by India's dynamic nonprofits. This can position India as a global force for social innovation advancing the country’s vision for a Viksit Bharat by 2047.