Private sector giving must grow over 25% a year to bridge development deficit: Report

A new report released by Bain & Company and Dasra puts private sector philanthropy at the centre of India’s development story.

The India Philanthropy Report 2026 projects that private philanthropy will reach Rs 1.43 lakh crore ($16 billion) in FY25. It is also expected to grow at 9–11% CAGR between FY25 and FY30, led by family giving among ultra-high-net-worth, high-net-worth and wealthy families, driven by rising wealth, increasing formalisation, and episodic mega‑donations.

But this is not enough. Private philanthropy will need to grow at over 25% annually, far above the projected 9–11% to bridge shortfalls in social sector funding, the report noted. This will require scaled contributions across family philanthropy, retail giving, and corporate social responsibility (CSR).

Bridging the structural gaps

According to the report, India's social sector funding has grown at a healthy 13% CAGR since FY20, nearly doubling to about Rs 27 lakh crore ($310 billion) in FY25. It is projected to touch Rs 50 lakh crore ($570 billion) by FY30. Yet, beneath this headline growth lies a widening structural gap. 

The funding shortfall was roughly Rs 16 lakh crore ($180 billion) in FY25 and is expected to increase to around Rs 18 lakh crore ($210 billion) by FY30—highlighting the persistent mismatch between India’s development ambitions and the capital available to realise them.

Public spending continues to dominate, accounting for nearly 95% of total social sector funding, particularly in healthcare, as policy momentum builds toward the 2.5% of GDP target.

Bridging the gap will demand a decisive acceleration in private giving. Private philanthropy will need to grow at over 25% annually, assuming public spending trends remain steady.

Indian families already account for approximately 42% of total private giving, through a combination of personal philanthropy and CSR from family-owned or family-run enterprises. Family philanthropy itself is evolving. Many families are moving beyond legacy causes towards approaches that strengthen the ecosystem and transform systems. They are adopting diversified operating models—balancing in-house implementation with larger grant-making portfolios.

Women leaders and working professionals are playing a transformative role in this shift, increasingly embedding intersectional approaches and prioritising gender, equity, diversity, and inclusion. 

Around 63% of families report women in leadership roles shaping philanthropic decisions, while nearly half (49%) indicate inter-generational involvement in anchoring giving priorities. First-generation wealth creators are also emerging as influential contributors in the philanthropic ecosystem.

A similar evolution is visible in CSR. Funding is expected to grow at 8–10%, supported by GDP growth, improved compliance, and an increasing number of companies crossing the statutory contribution threshold. Family-owned businesses continue to dominate, accounting for 65–70% of private-sector CSR spending. However, deployment remains highly concentrated, with the top 2–3% of families contributing nearly half of all family-led CSR outlays.

Geographically, CSR allocations remain skewed toward wealthier states such as Maharashtra, Gujarat, and Delhi. This concentration presents a clear opportunity: redirecting capital toward high multidimensional poverty index, low-CSR, and historically underfunded states could significantly enhance equity and developmental impact.

Interestingly, the Indian diaspora is one of the most significant growth levers, with the diaspora base expanding to approximately 34 million and remittances growing at nearly 14% annually between FY21 and FY25. Importantly, diaspora giving is moving towards trust-based and engaged models that combine funding with time, expertise, and global networks.

“Indian families remain the backbone of private philanthropy, contributing through personal giving and family‑business CSR. With Rs 1.25 lakh crore–1.35 lakh crore in potential upside by FY30, unlocking the full contribution of families will depend on how quickly philanthropic infrastructure evolves to meet their needs,” says Neera Nundy, Co-founder and Partner, Dasra, a strategic philanthropy foundation.

“The real question is not whether capital is available, rather if it’s structured to solve at scale. India’s social sector has seen impressive funding growth, as the report highlights, but the widening gap signals a deeper design challenge and an opportunity to channel the ongoing momentum to unlock private capital and accelerate outcomes.

"Philanthropic capital and support infrastructure need to grow hand in hand to ensure that funding translates into sustainable, scalable, and long-term impact,” says Bhavini Malhotra, Partner, Bain & Company, a global management consulting firm.