Impact Investments in India: An Analysis of Gender and Regional Differences

Abstract

Impact investing is a form of investing that focuses not only on financial returns but also on creating positive social and environmental impact. This paper studies gender and regional differences in impact investing in India. The study specifically examines whether the impact of impact investments differs between male and female beneficiaries. In addition, it explores whether the outcomes of impact investments originating in India differ from those made by investors from the rest of the world. Using the secondary data of 180 investors, from India and the rest of the world, an independent t-test was conducted to analyze four key impact indicators: number of states impacted, number of lives impacted, days of livelihood generated, and credit histories created. The results show significant gender differences at the global level, with male investors having a higher average impact across all four indicators. In India, the gender gap is even stronger and statistically significant, depicting that investments by males have a higher social and environmental impact than those by females. However, in the countries apart from India, the differences between men and women are not statistically significant, demonstrating that males and females have an equal impact through their social investments. The findings suggest that structural, cultural, and financial factors influence these differences. Hence, this study highlights the importance of creating gender-inclusive policies to encourage greater female participation in impact investing.