Impact investing in India, ground zero for impact investing, is growing exponentially and is projected to reach $8B in 10 years, in a region that has 63% of world’s poor (ADB), 27% of world’s GDP (IMF) and receives more than half 53% of impact investments (GIIN).
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“India is one of the world’s biggest markets for impact investing, given the nation’s many pressing social needs and an abundance of global capital. Assuming a growth of 20-24% based on global rates and strong growth of underlying sectors, we estimate that India’s impact investing sector could absorb $6-8 billion of capital annually by 2025, provided some critical barriers are addressed by the industry and the government,” said Toshan Tamhane, senior partner at the global consulting firm of Mckinsey.
Impact investments in India are also generating strong returns for investors, according to McKinsey, with median returns ranging between 10-12% and up to 34% for top deals. And drawing keen partners such as US-based former Microsoft CEO Bill Gates of the Bill and Melinda Gates Foundation, to work on, for example, technology-driven social projects such as e-health, e-agriculture and epayment banking to serve consumers at the bottom of the economic pyramid.
Source: Reuters
