India's ultra high networth individuals (UHNIs), with a net wealth of over Rs 1,000 crore, have significantly decreased their philanthropic contributions, falling from Rs 11,821 crore the previous year to Rs 4,230 crore in FY22. The figures were revealed in the India Philanthropy Report 2023 by Dasra and Bain & Co. The report attributes the drop, which is almost by a third, to a decline in contributions by the Azim Premji Foundation by Rs 9,000 crore due to a share buyback of Wipro.
However, the report also notes that even excluding the Premji Foundation’s contribution, UHNI contribution has not kept pace with wealth creation and is "below par, with a 5% contraction in FY2022." Similarly, the UHNI contribution by others fell sharply from 4,041 crore in FY21 to Rs 3,843 crore in FY22.
Despite UHNI net wealth in India increasing by 9.2% in FY22, with the top level of those with a wealth of Rs 50,000 crore witnessing 19% growth, the fall in philanthropic contributions has occurred. Additionally, overall private philanthropic growth has been stagnant, with total giving of Rs 105,000 crore in FY22 remaining the same as in FY21. However, corporate social responsibility (CSR) spending increased by 5% over FY21, to Rs 27,000 crore. Contributions by high networth individuals (with wealth of Rs 200 crore-1,000 crore) and affluent people were up by 11% over FY21, while retail giving rose by 17% over FY21.
The report reveals that foreign funding has fallen from 21% of total contributions in FY17 to 14% in FY22. Additionally, the share of UNHIs in total philanthropic giving decreased from 11.4% in FY21 to a mere 3.8% in FY22. The average contribution of UNHIs in India was only 0.06% of their networth, compared to 1.37% in the US, 0.33% in the UK, and 0.38% in China in FY22.
FAQs:
Q1: What is the reason for the decrease in philanthropic contributions by UHNIs in India?
The India Philanthropy Report 2023 by Dasra and Bain & Co reveals that the decrease in philanthropic contributions by UHNIs in India is due to a decline in contributions by the Azim Premji Foundation by Rs 9,000 crore because of a share buyback of Wipro. However, the report also notes that even excluding the Premji Foundation’s contribution, UHNI contribution has not kept pace with wealth creation and is "below par, with a 5% contraction in FY2022. The UHNI contribution by all others fell from 4,041 crore in FY21 to Rs 3,843 crore in FY22.
Q2: How does India compare to the US, UK, and China in terms of UHNI philanthropic giving?
According to the India Philanthropy Report 2023 by Dasra and Bain & Co, the average contribution of UNHIs in India was only 0.06% of their networth, compared to 1.37% in the US, 0.33% in the UK, and 0.38% in China in FY22.
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