Indian UHNIs Increase Philanthropic Contributions by 60% in FY 2023

Mumbai: Driven by significant contributions from Wipro Founder chairman Azim Premji and Shiv Nadar, chairperson of HCL Enterprise, philanthropic
contributions made by the ultra-high-net-worth individuals (UHNIs) in India have increased by over 60 per cent to Rs 6,850 crore in FY 2023, compared with Rs 4,230 crore in the previous financial year, according to India Philanthropy Report 2024 released on Thursday.

The report said that Premji, the former chairman of Wipro, increased his contributions by more than $125 million, while HCL founder Nadar increased his contribution by over 700 crore ($85 million) in the previous financial year. India's financial year is from April 1 to March 31.

The report by Dasra and Bain & Co classifies UHNIs as those having a net worth of over Rs 1,000 crore (over $120 million), HNI as those with a networth in the range of Rs 200 to Rs 1,000 crore ($25-$120 million). Individuals with a net worth of less than Rs 200 crore ($25 million) but more than $850,000 are considered affluent.

The number of UNHI philanthropists in India have grown from 100 to 120 between the financial years 2021 and 2023. Of these, 70 have been consistent donors, while 50 have donated sporadically.

Despite an increase in their donations, the UHNIs in India continue to “donate less than their counterparts in the US, UK, and China, who contribute 6 to 10 times more,” the report said.

HNI and affluent giving grew at a modest 7 percent in FY23 to Rs 26000 crore. Data indicates that HNIs have a higher propensity to give (at 0.7 percent of net-worth, compared to 0.1 percent for UHNIs). “Hence, there is potential to unlock a significant upside (up to 12 to 25 percent) in donations from this segment with the surge in the Indian economy and capital markets,” the report said.

Data revealed that private philanthropy is still a fraction of India's social sector spending. As a percentage of the Gross Domestic Product, social spending stands at 8.3 per cent of GDP, instead of the desired 13 per cent needed until 2030. Around 95 per cent of the social sector spending is still public-driven and stood at Rs 23 lakh crore ($280 billion) in FY23.