Social Sector Spending Has Increased, But Funding Gaps Persist

India's social sector funding has grown at a steady rate of 13% over the past five years and is estimated to have reached Rs 25 lakh crore ($300 billion; 8.3% of GDP) in FY 2024, according to the India Philanthropy Report 2025 by Bain & Company in collaboration with Dasra. The sector is primarily driven by public spending, which accounts for 95% of total funding, and is projected to increase to Rs 45 lakh crore ($550 billion; 9.6% of GDP) by FY 2029.

Despite this robust growth, the sector faces a shortfall of approximately Rs 14 lakh crore ($170 billion) compared to estimates by NITI Aayog. This gap is projected to widen further, reaching around Rs 16 lakh crore ($195 billion) by FY 2029.

The report showed that private spending grew more moderately, with a 7% increase from FY 2023 to FY 2024, reaching Rs 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. 

The top four family-owned/run firms within the top 2%—Tata, Ambani, Adani, and Birla—account for approximately 20% of the CSR spending by family-owned/run businesses. Other notable large family-owned/run firms include Hero MotoCorp (Munjal), Piramal Enterprises, and Apollo Tyres (Kanwar). The group also includes mid-sized enterprises, micro, small, and medium enterprises (MSMEs), and small and medium enterprises (SMEs). CSR contributions range as follows:

• Rs 800–1,000 crore for the top four family groups (with individual contributions ranging from INR 200 Cr. to 1,500 Cr.)
• Rs 20–25 crore for other firms in the top 2%
• Typically under Rs 1 crore, with contributions ranging from Rs 50 lakh to Rs 7 crore

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 familyowned/run businesses’ CSR contribution, highlighting the outsized role of a few key players, the report said.