This Article is From Aug 05, 2010

Will Indian billionaires donate like Americans? Not yet

Will Indian billionaires donate like Americans? Not yet
Mumbai: Forty of America's wealthiest families and investors have signed up with Microsoft mogul Bill Gates and billionaire investor Warren Buffett to give away at least half their wealth to charity.

At home, charity is still beginning.

In India, there's every sign that the count of the supernaturally wealthy is climbing. The world's five wealthiest people, according to Forbes Magazine, include two Indians - Mukesh Ambani and Lakshmi Mittal.

Several of the country's leading business houses, like the Tatas, Birlas or Godrejs have traditionally run or supported charities.

"If you look at the amount of philanthropy in India compared to the size of the economy, you'll see that it is growing," says Adi Godrej, Chairman of the Godrej Group.

A recent study on Indian philanthropy however says the country is behind the curve. 

Business consultancy Bain and Company found that India  currently has 1.15 lakh high-net-worth individuals. This elite group is growing faster in India than anywhere else in the world.

The study says that since 2000, the elite group has grown at an average of 11 percent annually. And between 2006- 2007 the number of wealthy individuals surged by 23 percent .

But individuals and corporations account for only 10 per cent of charitable giving. In fact, nearly 65 percent is donated by India's central and state governments with a focus on disaster relief. In the US, individuals account for 75 per cent of charitable giving. The balance of the philanthropy comes from foreign organizations and the government.

Lila Poonawala, who is in her 60s, heads Fila Rozil, Fila Rozil is into the horticultural business. Her foundation, the Lila Trust, provides scholarships to young girls.

"In the US, corporates have been generating wealth for ages.  Ours is a new generation. I am sure 5-10 years down the line, there will be many more corporates in charity," she says.

Godrej says even those who're not donating money can help shape a better financial environment. Godrej says it's easy to be judgemental of those who aren't publicly acknowledged as givers. "If you look at Indian entrepreneurs they are at a stage where they can contribute a lot by re-investing and expanding their businesses.

Remember a entrepreneur just by running a successful business is adding a lot of value by creating employment."

But in a country where those who don't get one square meal a day are found at every traffic light, perhaps it's time to up the ante and give a little more. 
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