Social Enterprise: An Overview of the Policy Framework in India

The study explores the enabling environment for social enterprises in India with a specific focus on the role that government could play in support of the sector. In formulating policy recommendations, the study builds on lessons from 15 years of government support to social enterprise activity in the UK as well as from the literature and interviews for this study. Since 2005, India has seen considerable growth in social enterprise activity. There are three main areas of policy that help to understand the current context for social enterprise development: NGO and civil society policy, financial inclusion and microfinance development and regulation, and private sector development. Stakeholders interviewed for the study suggested the following are key areas for engagement: legal status and definition, finance and access to investment, incubation and support, access to markets and government procurement opportunities, and support from the state and local level as well as from national government.