Impact investing in India is now projected to reach $40 billion by 2025, according to multiple stories in the press, an increase from the $8 billion “forecast” when it was last projected in November 2016.
What’s Changed?
The $8 billion forecast in November was made by McKinsey. This new $40 billion forecast was made by The GIIN, a different group.
Based on the language used in the interview with GIIN, assumptions made on growth rates and another recent study by the GCIA, the new forecast seems optimistic.
Still, this does not preclude the possibility that impact investing’s growth rates, regulatory incentives or addressable markets in the country may change to support the new forecast. India remains ground zero for impact investing’s promise (see video).
Partial Transcript
“In India, about $4 billion has been invested as part of impact investments in about five years. On an average annual basis, it is around $ 1 billion,” GIIN’s Advisor for South Asia Anil Sinha said in an interview.
“We hope there will be 25% annual growth rate as impact investments grow and it might grow from $4 billion to $35 to $40 billion in India by 2025,” he said.
Source: Economic Times India, Reuters, DNA India
