India currently receives funds from the World Bank’s International Development Association (IDA – the bank’s fund for the world’s poorest countries) but Professor Ravi Kanbur from the Cornell University predicts that this will change in a few years. With a rapidly rising per capita income, India has reached a point in its economic development where is soon won’t be considered one of the world’s most impoverished countries anymore.
However, per capita income has grown unequally across the country and benefitted some regions more than others that continue to live in impoverished conditions. Even today, India has the largest number of people living in poverty which is not expected to change in the near future.
In order to fight poverty and inequality in the future, experts shift their focus towards the private sector. Private philanthropy is not yet big in India, but recent studies have suggested that it is growing rapidly. Also, a recent study by Bain & Company showed substantial growth in private giving, mainly from foundations and corporations. As India has the fastest growing population of high net worth individuals in Asia and a sophisticated philanthropic community is slowly developing, the country has a viable alternative source of funding once the country is no longer eligible to receive IDA funds.