India has to spend Rs 10 lakh crore to bridge the social inequality in the country. While much of the spending on social sector schemes will continue to come from government, many of us also need to do our part. Corporate social responsibility (CSR) initiatives, philanthropy and small contributions from the general public will reduce some of this inequality.
According to a Bain & Co report, India’s very wealthy will have to increase their donations by eight times to match their British and Chinese counterparts, and by thirteen times to give more than the millionaires and billionaires in the US.
Disturbingly, the report shows that philanthropic contributions in India have only grown at a paltry 6 percent per year, from Rs 16,000 crore in fiscal year 2014-15 to Rs 22,000 crore in 2020-21.
However, there is a silver lining. India’s new-age entrepreneurs, who have come to amass great wealth in recent times, are giving more generously. According to the Bain report, technology founders made up about eight percent of Ultra High Networth’s (HNI) total wealth and contributed to 35 percent of total donations in 2020-21 and there seems to be room for much more. to do.
The ‘IIFL Wealth Hurun India 40 & under self-made rich list 2022’ published yesterday saw 14 newcomers, all founders of startups. The cumulative wealth of the new entrants to the list has increased by 11 percent as compared to last year and currently stands at Rs 1.84,000 crore. A reflection of this trend can be seen in the Young India Philanthropic Pledge (YIPP), an initiative for Indians under 45 with a net worth of more than Rs 1,000 crore to publicly donate 25 percent or more of their wealth to philanthropy.
As part of its first project, YIPP has teamed up with the Bill & Melinda Gates Foundation to provide funding of Rs 50 crore over a 3-year period with the aim of modernizing government schools in rural Karnataka.
The Young India Philanthropic Pledge exemplifies the “shovel-ready and fully designed vehicles for giving” that Bain proposes in his solutions to help India’s wealthy give more.
CNBC-TV18 spoke with Prashanth Prakash, co-founder and partner at Accel India; Nikhil Kamath, co-founder of Zerodha & True Beacon; Amitabh Shah, founder of Yuva Unstoppable; and Arnav Kapur of the Bill & Melinda Gates Foundation, to talk about a way to bridge social inequalities in India.
Watch video for more.