List of rich Indians contributing hefty amounts gets longer.
By Rajiv Theodore
NEW DELHI: When it comes to the rarefied world of philanthropy, there is again that omnipresent paradox that strikes India. History is replete with evidences of the rich giving to charity, pouring out their wealth to temples and mutts which still continues. Recent records show that the Tirupati temple received a total of 1,175 kg of gold worth $65 million. Business baron Vijay Mallya had given three kgs. of gold to the temple on his 57th birthday.
On the other end of the spectrum, India ranks one of the lowest in the world in sharing of wealth to improve the quality of life of the unfortunate and the deprived, to promote social good and alleviate human suffering.
Studies and surveys, be it in human development, competitiveness, ease of doing business, integrity in public life show they fare poorly globally, and in the World Giving Index too, India is way down as a poor 133 among 150 countries, even lower than Bangladesh (109) and Nepal (115).
According to the Bain Company, which brings out a report every year, private charity contributions as a percentage of GDP are only 0.4 per cent in India, compared with 1.3 in the UK and 2.2 in the US.
It may be recalled that when Warren Buffet and Bill Gates were in India to urge the wealthy to join the world philanthropic movement, ‘Giving Pledge’, to give back to society a significant part of personal earnings and accumulated wealth, ‘they were met with smiles, but with little support’.
It was seen that only 70 members of the corporate world attended the meeting and among them only two pledged part of their wealth. One, being Azim Premji who transferred 12.5 per cent of his holding in Wipro — worth $2.2 billion — to a public charitable trust named after him. The other being P. N. C. Menon, founder of the Sobha group, a Dubai-based conglomerate, who pledged 50 per cent of his wealth of $600 million.
But the tide seems to be changing its contours in India.
In a pleasant surprise, more Indians have joined the philanthropy bandwagon. China based magazine Hurun Report, in a report published on Wednesday, put out a list of generous Indians. Predictably, it was topped by the IT tycoon Premji with a donation of Rs. 8,000 crore in the past year. But the list got longer.
HCL group chairman Shiv Nadar came in second with a donation of Rs. 3,000 crore. Others in the list included G M Rao, who, through GMR Varalakshmi Foundation, contributed Rs. 740 crore for the education of underprivileged children.
Fourth in the list were techie duo Nandan and Rohini Nilekani, contributing Rs. 530 crore.
Media man Ronnie Screwvala contributed Rs. 470 crore. Kiran Mazumdar Shaw, chairperson and managing director of leading biotech firm Biocon, made a donation worth Rs. 330 crore. Tata Sons chairman emeritus Ratan Tata donated Rs. 310 crore to various charitable organizations for the underprivileged through the JRD Tata Trust and Sir Ratan Tata Trust. London-based mining major Vedanta Resources chairman Anil Agarwal donated Rs. 290 crore to support the cause of healthcare. PNC Menon of Sobha Developers and DLF chairman Kushal Pal Singh contributed Rs. 270 crore and Rs. 200 crore for rural development, respectively.
The streak of generosity is welcome. Companies seem to have realized, albeit a bit slowly and reluctantly, the importance of Corporate Social Responsibility which is today coded in the new Companies’ Act, entailing firms to contribute a fixed sum for the development of the society around them.
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