Philanthropy, characterized by charitable acts or good works aimed at helping others or benefiting society as a whole, has deep roots in Indian culture. Recent discussions have highlighted its potential in accelerating India’s journey towards achieving a per capita income of USD 15,000 by India@100 in 2047 through inclusive and sustainable economic growth.
Historical Overview of Philanthropy in India
The act of giving is not alien to India. Even during pre-industrial times, business families regularly donated a part of their income to local charities. The advent of industrialization and consequent wealth accumulation allowed business leaders like Sir Jamsetji Tata to make significant contributions for societal good. During India’s struggle for independence as well, Mahatma Gandhi inspired businessmen to share their wealth for nation-building. Notable industrialists such as Jamnalal Bajaj and G.D. Birla supported this view through their own philanthropic endeavours.
The Jewish Model of Philanthropy in the United States
During this same period, the United States experienced the Carnegie-Rockefeller era of philanthropy. Andrew Carnegie, despite being a successful industrialist, also devoted himself to philanthropy, building institutions like the Carnegie Library and Carnegie Mellon University. His philosophy of considering dying rich as disgraceful inspired many to participate in philanthropy. Similarly, John D. Rockefeller donated significant amounts to systemic reforms including educational improvements and initiatives such as eradicating yellow fever.
Challenges Faced in Indian Philanthropy
Despite having a history of philanthropy, India still faces several challenges. There is a trust deficit among budding philanthropists who have yet to fully appreciate the work within the impact sector. The parochial nature of giving, focusing only on certain regions or causes, also risks neglecting some of the country’s poorest parts. In addition, the results of programmatic giving remain unsatisfactory with issues like poor learning outcomes persisting despite numerous foundations and NGOs focusing on education.
Proposed Path Ahead for Philanthropy in India
Building institutions is one way forward for philanthropy in India. Using collective philanthropy to fund universities or research centers can lead to significant improvements in Indian education. This approach has been demonstrated effectively by the Tata family through building institutions such as the Indian Institute of Science in Bengaluru, The Energy and Resources Institute (TERI), and Tata Memorial Hospital.
Philanthropists can also support government initiatives and improve delivery mechanisms. For instance, they could fund risky R&D for the government, thereby facilitating innovation in the social sector and helping to build evidence, advocate policy change, and support government implementation. Examples of such efforts include Nandan Nilekani’s innovation ecosystem that aids the government in developing India’s digital architecture such as Aadhaar, Unified Payments Interface, and eKYC.
Working alongside the government can potentially create scalable and sustainable impact. Philanthropic entities should consider shifting from funding programme delivery through NGOs to initiatives which improve the government’s system of delivery. This approach has been adopted by the Piramal Foundation and Veddis Foundation in their support for the Aspirational Districts collective and initiatives to improve the evidence base and outcome orientation of governments respectively.
Philanthropists can further foster economic growth by leveraging their wealth and experience to advocate policies that support investment, exports, and job creation. By doing so, they have the potential to contribute towards transforming India’s economy into a more inclusive and sustainable one.
