NEW DELHI— India’s high-net-worth (HNW) families could play a pivotal role in helping the country reach its $5 trillion economic goal faster by channeling their capital toward social goals through impact investing and blended finance, a new report said Tuesday.
Impact investing refers to generating returns by investing in businesses that also deliver a positive social impact. Blended finance combines private wealth with grants or government funding to reduce risk and support social enterprises.
According to the report from wealth advisory firm Waterfield Advisors and nonprofit organization Impact Investors Council (IIC), many HNW families still operate in silos and show weak retention in impact investing. While participation is growing, long-term commitment remains low. Of the 316 HNW families that entered the impact investing space in 2021, only 64 remained active by 2024.
Public funding continues to be the dominant source of social sector spending, but a large financing gap persists — one expected to widen in the coming years. The report said HNW families are uniquely positioned to close this gap by backing high-impact enterprises in health, education, agriculture, climate, livelihoods, financial inclusion, and affordable housing.
“This report is a call to move from one-off experiments to sustained, conviction-led strategies that can help close India’s social financing gap,” said Soumya Rajan, Founder and CEO of Waterfield Advisors.
“When discussions turn into conviction, and then to action, family wealth can truly catalyze systemic change and power India’s $5 trillion journey,” added Girish Aivalli, CEO of the Impact Investors Council.
India’s economy has maintained strong momentum, with GDP expanding 7.8 percent in the first quarter of fiscal year 2025–26, compared to 6.5 percent during the same period last year. (Source: IANS)
