By Samar Verma, PhD*
India’s Philanthropy Turns Inward and Green
The Quiet Rise of Local and Diaspora Philanthropists
Any attempt to predict the future of Indian philanthropy is a polite challenge to fate. In times when even quarterly market changes and monsoon patterns defy confident prediction, speculating about what Indian donors, governments, and markets might do in 2026 can feel like climbing a mountain without a safety rope.
Yet there is value in well-reasoned guesses, as long as they are presented with humility instead of certainty.
What follows is therefore not a prophecy, but a thoughtful exploration: an effort to examine the evidence, identify a few clear trends, and envision how Indian philanthropy might quietly support the country’s path toward Viksit Bharat, green growth, and the G20 idea of “One Earth, One Family, One Future.”
From Giving to Strategy: India’s New Philanthropic Era
India’s social-sector funding has grown by about 13% each year over the past five years. It is estimated to have reached around ₹25 lakh crore in FY 2024, which is about 8.3% of GDP. Most of this comes from public spending. Projections suggest that total social spending could rise to nearly ₹45 lakh crore by FY 2029, as Union and state governments continue to invest heavily in health, education, climate action, gender equality, and urban development.
Within this, private social spending hit about ₹1.31 lakh crore in FY 2024, increasing by 7% from the previous year. It is expected to grow by 10–12% annually over the next five years. Family philanthropy among ultra-high-net-worth individuals (UHNIs), high-net-worth individuals (HNIs), and affluent donors, along with CSR and retail giving, drives this growth. Families contribute around 40% of private philanthropy, both through personal donations and CSR efforts by family-owned and family-run businesses, which make up roughly two-thirds of private-sector CSR.
The Silent Surge That Could Reshape India’s Development
Private philanthropy is still smaller than public spending, but it is especially well-suited to support India’s long-term vision. Philanthropic funding can be patient, willing to take risks, and experimental. It can test new ideas in foundational learning, primary healthcare, digital inclusion, care work, and climate resilience. Once these ideas are successful, they can be scaled through public systems and markets. In this sense, philanthropy is not an alternative to the state but a partner that helps transform the ambitions of Viksit Bharat 2047 into practical, locally based solutions.
Macro Forces in 2026: Geopolitics, Domestic Wealth, and Collaboration
Three broad forces seem particularly significant for 2026.
First, the funding mix is becoming more focused on domestic sources. Domestic private-sector funding, including family philanthropy and CSR, has been steadily rising due to Indian wealth creation. While foreign private funding remains important, it is growing more slowly and is situated within a changing global regulatory and geopolitical landscape. This naturally encourages Indian donors to connect more closely with national goals in health, education, social protection, and climate action, reinforcing the view that India’s development will increasingly be financed from within.
Second, geopolitical changes are affecting international funding flows. In several major economies, policy discussions have highlighted defence, security, and domestic priorities. This can influence the makeup of global development and climate finance, even as there is still a strong commitment to cooperation. For India, this trend is not a concern but a reminder that domestic philanthropy, CSR, and blended finance will play a growing role in maintaining progress on issues such as public health, gender equality, research collaborations, and higher education- areas directly linked to India’s global engagement and soft power.
Third, family giving is becoming more professional. The number of family offices has increased sharply in recent years, reflecting a rising interest in organised, multi-generational philanthropy. With structured support, this group could unlock many thousands of crores in additional family philanthropy. The Indian diaspora, now larger, wealthier, and more engaged, offers more potential for long-term, values-driven investments. Many of these families not only support projects in India but also share knowledge and models across borders, subtly enhancing India’s influence as a thought leader for the Global South.
Together, these forces indicate an Indian philanthropy that is more domestic, more collaborative, and more intentionally aligned with public policy. Rather than staying on the sidelines, philanthropy is increasingly welcomed into the mainstream as a partner that can bring innovation, flexibility, and collaboration to the execution of key initiatives and state-level reforms.
Green Growth Becomes Philanthropy’s New Playbook
Nowhere is this partnership approach more evident than in the green economy. Recent analysis on Viksit Bharat and green growth suggests that India could unlock a substantial green market by 2047 across emerging value chains in energy transition, circular economy, bio-economy, and nature-based solutions. Notably, this work shows that a green economy goes beyond solar panels and electric vehicles. It also involves bio-based materials, green construction, sustainable tourism, agroforestry, nature-based livelihoods, and circular manufacturing.
In this context, climate action and economic strategy are not separate goals. Climate resilience is included in the design of growth, jobs, and competitiveness. Green growth provides a practical path to Viksit Bharat, offering new jobs, new industries, and cleaner environments, especially for states and districts that get involved early in emerging green value chains.
Globally, funding for adaptation still falls short of estimated needs, while climate impacts hit low-income and vulnerable communities the hardest. India’s approach- embedding resilience in key economic sectors like energy, mobility, agriculture, and urban development- has particular importance. Instead of treating adaptation as a separate issue, India is increasingly incorporating resilience into economic planning, infrastructure, and social safety nets.
Green Growth as an Organising Principle
Philanthropy can support this direction in three ways: by backing applied research on green value chains that create jobs and resilience; by assisting state governments, municipalities, and small and medium enterprises in building the skills to tap into green opportunities; and by testing community-led models in climate-resilient agriculture, water security, heat-resistant urban services, and nature-based livelihoods. When these efforts align with national and state-level plans, they help fulfil India’s climate commitments, Mission LiFE, and the vision of a Viksit Bharat where growth is resource-efficient and inclusive.
These efforts also represent a form of soft power. When Indian institutions share strong, community-focused models of green growth with peers in Africa, Southeast Asia, or Latin America, they position India as a source of homegrown solutions for the Global South. Philanthropic support for this knowledge production and South–South exchanges can quietly reinforce India’s leadership role at a time when many countries are looking for practical, context-sensitive paths to climate-resilient development.
Where Philanthropy Can Add the Most Value
Within this broader context, a few areas stand out as particularly suited for philanthropic investment in 2026.
One is strengthening institutional capacity. Many NGOs, research centres, and local collaboratives that work closely with government programmes continue to function with limited core funding. Multi-year, flexible support can help them invest in talent, data systems, technology, and learning resources vital for delivering public programmes effectively and efficiently.
Another area is data, evidence, and learning. For a social sector that could reach around ₹45 lakh crore by FY 2029, investments in measuring outcomes, open data platforms, and evaluation networks can greatly improve policy design and execution. Philanthropy can fund such public-interest infrastructure, ensuring that insights from one state or sector quickly inform others, and that the benefits of new ideas are widely shared. When well-documented, these insights also become part of India’s intellectual contribution to the Global South, showing how large, diverse democracies can pursue inclusive, green, and digitally enabled growth.
A third area is fostering local leadership and intermediary infrastructure outside major cities. As more of India’s transformation occurs in tier-2 and tier-3 cities, small towns, and aspirational districts, there is a growing need for locally based institutions- training centres, think tanks, civil-society platforms- that can work closely with district administrations and local organisations. Supporting these institutions aligns with the focus on citizen-centred, regionally balanced development in the Viksit Bharat framework.
Finally, there is an opportunity to engage regional business families and diaspora philanthropists more systematically. Their donations usually focus on local public goods, and they prefer working closely with local administrations. With the right support- quality advisory services, pooled funds aligned with Union and state goals, and platforms that spotlight innovative solutions from Indian nonprofits- these donors can become significant partners in areas like foundational learning, skills development, green jobs, and urban resilience.
Climate and Collaboration to Shape India’s Philanthropy
If I had to make a single prediction about 2026, it would be that Indian philanthropy will likely be more focused on domestic sources, more collaborative, and more conscious of climate issues than ever before. Domestic families, CSR teams, and retail donors are likely to make up a larger share of social investment. Collaboration with the Union and state governments on major missions will strengthen. Additionally, a larger, though still measured, portion of philanthropic funds will flow into integrated green growth and climate resilience. In this way, philanthropy can be a solid ally in achieving a developed, inclusive, and environmentally secure India.
Local Donors, Local Solutions: Giving that Transforms Lives
The important trend to watch is the quiet rise of regional and diaspora philanthropists rooted in specific districts and states. Their support for local public goods, combined with their international connections, positions them well to improve outcomes at home while also showcasing Indian innovations abroad. As Indian philanthropies, NGOs, and research institutions share homegrown models- on digital public infrastructure, green jobs, social protection, or community health- with partners across the Global South, they contribute to a larger ecosystem of ideas that reflects India’s development journey.
In a time of geopolitical uncertainty, these contributions matter. They reinforce India’s role as a constructive, solutions-oriented voice, able to connect high ideals with practical experience.
If Indian philanthropy embraces the opportunities of 2026 to deepen collaboration, support green and resilient growth, invest in knowledge and institutions, and share its best ideas with the world, it can quietly yet significantly promote both national goals and the broader aim of creating a fairer and more sustainable planet.
*Samar Verma is a senior economist, public policy professional and an institution-builder, with 28 years of experience in economic policy research, international development, grant management and philanthropic leadership.
