Private giving in India rose sharply in 2010; 40 per cent of wealthy individuals plan to increase donations over next five years, according to Bain & Company's "India Philanthropy Report"



Mumbai, India—June 29, 2011— Donations by wealthy Indians helped to significantly increase private giving in India in 2010 which rose by at least 50 percent since 2006 as a percentage of GDP, to approximately $5-6 billion—according to Bain & Company’s “India Philanthropy Report 2011” released today. The report, which includes a survey of over 300 wealthy individuals, also finds that future giving is poised to rise further, as the rich population in India grows and as the philanthropic system becomes more advanced.

The report, authored by Bain Partner Arpan Sheth and New Delhi-based Manager Madhur Singhal, finds that 40 per cent of wealthy individuals in India plan to increase philanthropic donations over the next five years.

“Indians reached more deeply into their wallets in 2010 to give to charitable causes,” said Mr. Sheth, who is based in Bain’s Mumbai office where he heads the firm’s India Private Equity practice. “Our research findings suggest even greater levels of giving going forward as the wealthy population grows and India’s philanthropic network becomes more evolved and efficient.”

However, as the Bain study shows, India’s private charitable donations at between 0.3 and 0.4 percent of GDP in 2010—up from 0.2 percent in 2006—still lag behind developed countries: in the US, private giving (including bequests) accounted for 2.2 per cent of GDP in 2009; in the UK, it was 1.3 per cent in 2010.

The report identifies a key reason for the disparity: individual donations in India still constitute only 26 per cent of all private charitable contributions, while corporate donations and foreign funds make up the other 74 per cent. In the US, on the other hand, individual charitable donations are 75 per cent of all private giving; in the UK, they make up 60 per cent.

As wealthy individuals in India increase their philanthropic spending, corporate India is also playing a bigger role in private giving. Companies have stepped up social spending at a faster rate than their own profit growth. Bain’s 2011 report estimates that corporate giving in India now totals $1.5 billion—increasing five-fold since 2006.

The report suggests that much more needs to be done to alleviate India’s myriad and deep-rooted problems. It highlights four imperatives for actions which could boost the growth of philanthropy in India. These are:

  • Increasing accountability and transparency throughout the giving chain
  • Creating more capable and professional NGOs
  • Continuing to promote a giving culture
  • Working with the government to promote policies conducive to philanthropy

“Undertaking these steps would give a boost to philanthropy in India, which is already growing substantively as the wealthy increasingly start giving back,” said Sheth.

For a copy of Bain & Company’s “India Philanthropy Report 2011” or to schedule an interview with Arpan Sheth, Indian media please contact Kamil Zaheer at or +91 98115 38880 and international media please contact Dan Pinkney at or +1 646 562 8102.

# # #

About Bain & Company, Inc.

Bain & Company is the management consulting firm that the world's business leaders come to when they want results. Bain advises clients on strategy, operations, technology, organization, private equity and mergers and acquisition, developing practical insights that clients act on and transferring skills that make change stick. The firm aligns its incentives with clients by linking its fees to their results. Bain clients have outperformed the stock market 4 to 1. Founded in 1973, Bain has 53 offices in 34 countries, and its deep expertise and client roster cross every industry and economic sector. For more information visit: Follow us on Twitter @BainAlerts.

About Bain Cares

Bain cares about the impact businesses have on the development of the communities in which they operate. This belief manifests itself in contributions we make to nonprofit organisations. These range from cash donations—as was the case in the tragedy in Japan this year—to multiyear project team investments with nonprofits such as City Year, a volunteer youth corps in the United States. In India, we work with NGOs such as Pratham, The Clinton Foundation, Goonj and Dasra. Over the past year, 18 Bain consultants have participated in Dasra’s social impact mentoring program to help NGOs and social enterprises develop their business plans.

About Bain India

Bain & Company has been advising clients in India since 1995, with the first formal office opening in New Delhi in 2006 followed by the Mumbai office opening in 2009. Bain India's client work includes advising large Indian companies and family-owned conglomerates, multinational corporations and private equity firms across more than 30 industries, including infrastructure, technology, telecommunications, financial services, healthcare and consumer products on growth strategy, mergers and acquisitions, due diligence, post-merger integration, organizational redesign, market entry and performance improvement. For more information visit: