Social Stock Exchange Idea Highlights India’s Move Away From Foreign Aid
Thursday, July 11, 2019
By Vidhi Doshi
India’s finance minister, Nirmala Sitharaman, has called for the creation of a “social stock exchange”, allowing ethically minded investors to buy stakes in social enterprises, volunteer groups and welfare organisations.
The proposal would be a radical experiment in a country characterised by stark inequality and rapid economic growth.
If created, the exchange could provide new and cheaper sources of financing for social welfare projects, while showcasing India’s independence from foreign aid as it seeks to enhance its position on the world stage.
“It is time to take our capital markets closer to the masses and meet various social welfare objectives related to inclusive growth and financial inclusion,” Sitharaman said in her maiden budget speech on Friday.
Photo courtesy of Nicolas Mirguet.