Social Sectors

The word “investment” holds a very specific perception in the human mind. It is mainly viewed as a monetary process associated with markets, businesses, economy, and wealth management. But in reality, the scope of investment extends far beyond the narrow boundaries of these profit-driven systems.

Enters Impact Investment

Impact investment is a process of ensuring social growth and benefits while accruing healthy financial returns. Since 2000, India has witnessed a total impact investment of $1.6 billion in healthcare, micro-finance and other social sectors. The number of foreign institutions seeking to invest in this area has also increased.

A lot of capital inflow has been occurring since the last few years, only waiting for proper deployment in various social sectors. Areas like microfinance institutions, financial inclusion, healthcare, etc. have received 82% of the total investment. Limited partners are also gradually becoming aware of the social aspect of an investment, and are nowadays treating it as an emerging asset class in the market.

More Impact Investors Are Needed

If India seeks to achieve sustainable goals by the end of 2030, then estimate says that it would require at least $5 billion to $7 billion investment per year with a financing gap of $2.5 billion. This only increases the demand for impact investors who will be instrumental in boosting the Indian social sector in future.