High net-worth families can help India become $5 trilnlion ecoomy faster
India's high-net-worth (HNW) families can help the country become a $5 trillion economy by utilising their capital for social goals, using impact investing and blended financing techniques, a report said on Tuesday.
Impact investing means generating returns by investing in businesses that make a positive social impact. Blended finance is a technique where wealthy individuals mix their money in social business initiatives that receive grants or government funds to reduce risk.
Many HNW families continue to operate in silos and exhibit low retention in impact investing, according to the report from wealth advisory firm Waterfield Advisors and NPO organisation Impact Investors Council (IIC).
HNW family participation in impact investing is rising, but retention is weak. Of the 316 HNW families who entered in 2021, just 64 remain active in 2024, the report said.
While public funding remains the dominant source of social sector expenditure, a significant financing gap persists and is expected to widen further in the coming years, the report added.
HNW families are uniquely positioned to fill this gap by investing in high-impact enterprises, in sectors like health, education, agriculture, livelihood, climate, financial inclusion and affordable housing, it noted.
"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 catalyse systemic change and power India's $5 trillion journey,” added Girish Aivalli, CEO, Impact Investors Council (IIC).
The country’s economy continued its strong momentum in the first quarter of 2025-26 (Q1 FY26), with GDP growing 7.8 per cent compared to 6.5 per cent in the same period last year.
