The financial year 2021-22 proved to be very good for Indian Dhankubers (India’s Richests). During this period, the wealth of the country’s richest people i.e. Ultra High Networth Individuals increased by more than 9 per cent, but their expenditure on social works decreased. This information has been revealed in a new report.
The contribution of UHNI is so low
Consulting firm Bain & Report 2023 (India Philanthropy Report 2023) has been prepared. According to the report, during the financial year 2021-22, the net worth of India’s UHNI Networth increased by more than 9 percent. However, if the share of Wipro Founder Chairman Azim Premji is removed So, their contribution in social works comes down to Rs 3,843 crore. This contribution was Rs 4,041 crore a year ago i.e. during the financial year 2020-21. UHNIs are called people whose net worth is more than Rs 1000 crore.
According to the report, in the year 2021, Wipro Share Buyback from Azim Premji’s Foundation (Azim Premji Foundation) had sufficient cash. For this reason, he had contributed more than Rs 9000 crore in social works then, which was reduced to Rs 484 crore in the financial year 2021-22. For this reason, the contribution of Azim Premji has been excluded while preparing the report.
CSR of companies picks up
The report states that during 2021-22, Corporate Social Responsibilities Expenditure on social work increased under CSR. It was Rs 27 thousand crore in 2021-22, which was 5 percent more than the year before i.e. 2020-21. Under CSR, companies have to spend 2 per cent of their average profits of the last three years. That now most of the companies have started following the mandatory rule of CSR. In the financial year 2021-22, BSE 200 companies made an additional contribution of Rs 1,200 crore under CSR. Similarly, the contribution of retail segment increased by about 18 percent. Overall, the expenditure on social works increased to 9.6 per cent of GDP during this period. The total expenditure on the works was Rs 22.6 lakh crore. However, about 95 percent of this was for government expenditure. According to an estimate by Niti Aayog, India needs to spend equal to 13 per cent of GDP on social work to achieve the United Nations Sustainable Development Goals. The report stresses the need to increase the contribution of the private sector to achieve this.
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