SSE: A New Channel for Research Funding
The Anusandhan National Research Foundation (ANRF) is set to use the Social Stock Exchange (SSE) as a new way to increase its funding, shifting from relying only on annual government budgets. This move taps into a new but growing financial system designed to direct money to social projects. The SSE, overseen by the Securities and Exchange Board of India (SEBI), provides platforms on exchanges like the NSE and BSE for organizations to raise funds. They can use instruments like Zero Coupon Zero Principal (ZCZP) bonds to bring transparency and trust to social ventures. Early listings, such as those by SGBS Unnati Foundation and Swades Foundation, have shown the SSE's potential, with Swades Foundation raising Rs 10 crore in August 2024. ANRF aims to build a varied and stable funding base by seeking a listing, lessening its reliance on government grants. This aligns with a national goal to involve the private sector more in research and development. The ANRF Act of 2023 itself aims to change India's research funding from scattered, ministry-led models to a more goal-oriented system.
Tapping into Growing CSR and Diaspora Funds
ANRF's strategic move to the SSE is well-timed with major changes in India's giving and impact investing scene. Corporate Social Responsibility (CSR) spending by Indian companies has grown significantly, with total CSR expenditure rising 30% year-on-year to Rs 19,208 crore in fiscal year 2024. Total spending between 2014 and 2024 exceeded Rs 1.22 lakh crore. Additionally, the Indian diaspora is increasingly directing its substantial financial resources toward philanthropic efforts. Remittances from the diaspora now reach $138 billion annually, and diaspora giving is expanding rapidly, with Indian-American contributions estimated at $4-5 billion in 2024. This shows a growing pool of money that is open to structured funding based on results, like those offered by the SSE. Impact investing in India is also expected to grow strongly, with a projected compound annual growth rate of 25% from 2025 to 2030, potentially reaching $8.9 billion by 2030. This strong growth in impact money and giving creates opportunities for ANRF to find new funding sources for its scientific and technological research priorities.
Funding Hurdles: Research Spending Issues
Despite the benefits of fundraising through markets, ANRF faces major challenges with how funds are used and widespread problems in India's research funding system. A parliamentary standing committee report on March 30, 2026, found that ANRF did not use any of its budget in fiscal years 2023-24 and 2024-25. It only managed to spend 61% of its Rs 2,000 crore budget for the current fiscal year (2025-2026). This contrasts sharply with the ₹961.35 crore already disbursed as of last week, pointing to possible widespread problems in managing and spending funds. These issues are common in India; research funding is mostly government-led but is slowed by bureaucracy, poor coordination, and delays in releasing money. Although government funding for the Department of Science and Technology increased in the Union Budget for 2025-26, India's overall R&D spending as a percentage of GDP remains slow compared to developed countries. Furthermore, the SSE itself, while promising, has attracted little interest, with only a small number of NGOs listing. Some also face complex rules and high costs for raising smaller amounts. The success of SSE listings depends on strong impact tracking and openness, areas where organizations must prove their value to attract ongoing investment.
ANRF's Path: Balancing Funding and Results
ANRF's upcoming listing on the SSE is a forward-looking plan to secure steady funding for India's scientific progress. By diversifying its money sources, the foundation aims to increase its ability to support both basic and goal-oriented research, covering critical fields like artificial intelligence and MedTech, as well as early-career grants. The key test, however, will be how well ANRF uses these new funds to achieve clear research results. Fixing the issues in fund use, improving openness in how projects are run, and showing measurable results are essential to keep investor trust and achieve the goal of changing India's research system. The SSE offers a path to capital, but ANRF must show its operational efficiency and strategic vision to fully use its potential and contribute significantly to India's innovation goals.