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How India is innovating with purpose and impact

Published on 21/07/2025 05:33 PM

India is spearheading a social innovation revolution that reverts the idea of how technology and purpose can intersect to solve some of the most pressing challenges in our country. Social innovation, here, is more than digital transformations, or merely new business models. It is about creating solutions to utilize the demographic dividend of India, its increasing digital infrastructure and supportive entrepreneurial ecosystem to create appropriate solutions to challenges such as climate change, relevant at a local, and global level.

With over 66 per cent of the population under 35, digital infrastructure growing exponentially, and an emerging ecosystem of sustainability and impact, India is poised to lead the world with the next wave of social innovation, in which locally sourced, appropriate solutions will meet scale and systemic impact. 

Rather than trying to replicate the world’s templates, India is defining their own path through four distinct shifts. The role of the state is evolving from enabler to implementer, with the policy direction of the Startup India programme, PM Gati Shakti (speed power), PM Surya Ghar Yojna and NEP 2020 (National Education Policy) paving the way for experimentation and public-private partnerships for enabling experimentation.

The convergence of civil society and technology is evident with over 3.3 million NGOs and emerging civic-tech players like Reap Benefit, Haqdarshak, and Gram Vaani driving participatory impact. 

The rise of local funders -such as Rohini Nilekani Philanthropies, ACT Grants, Rainmatter, and Wadhwani Foundation - signals a shift from charity to risk capital for impact. 

India’s success in the Sustainable Development Goals (SDGs) is impacted by scale, diversity, and rapid development, with issues being more challenging due to regional disparities and the sheer size of the population.

Some of the key challenges include: 

Solution: Through pay-as-you-go models and solar microgrids, organizations like SELCO, d.light and Husk Power Systems are providing the ability for local, clean energy access in rural areas. By activating innovative financing and community ownership models, these organizations are helping those 750 million living in energy poverty. 

SDG 11 (Sustainable Cities & Communities) presents challenges. Projections indicate that cities will see an increase of 416 million residents by 2050, which presents huge social and ecological stress on infrastructure and urban resilience. 

Solution: Urban social innovations include affordable housing models by companies like Brick Eagle, smart waste management by Hasiru Dala &  Recycle India, and urban mobility platforms like Yulu, among many others. 

To achieve scalable and sustainable social innovation in India, targeted policy reforms are essential. Upgrading to CSR 2.0 would encourage greater corporate investment in early-stage impact enterprises and blended finance, moving beyond traditional grants. Additionally, creating a regulatory sandbox for social startups would let innovators pilot solutions in health, water, education, and agriculture under real-world conditions.

Even with India's flourishing social innovation scene, a number of significant obstacles still exist. Access to catalytic funding is one of the biggest challenges, especially during the critical period known as the "valley of death" that occurs between initial grants and venture capital investment. Because traditional grants expire before they are developed enough to draw in commercial capital, many promising social enterprises struggle to survive during this time, which stalls their growth and impact.

To accelerate the impact of social innovation in India, it is crucial to create shared platforms, such as AndPurpose Forums & Summit, that foster convergence and co-creation among innovators, funders, and policymakers. These collaborative spaces can break down silos and enable collective problem-solving. Providing multi-year support, rather than limiting initiatives to one-year pilots, supporting them with Knowledge, Social & Financial capital, allows social enterprises the time and stability needed to refine and scale their solutions. Building stronger bridges between Innovators and mainstream businesses and CSR leaders is essential. This holistic approach can help unlock greater scale, sustainability, and systemic change for social innovation in India.

 

 

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