India’s Social Stock Exchange: Econometric Evidence for Economic and Social Transformation

The Social Stock Exchange (SSE) initiative in India targets to channelise private sector investment and philanthropy towards social sector enterprises and (NPO) non-profit organisations in order to bridge funding gaps. Present study examines effective implementation of SSE for India by linking variables like Corporate Social Responsibility (CSR) trends, Foreign Direct Investment (FDI) inflows, and Gross Value Added (GVA)  via  (VAR) models alongside a Social Return on Investment (SROI) framework to evaluate both social and economic impacts. Findings suggest that CSR investments generate positive social returns where (SROI > 1) also indicating significant contributing to India’s economic growth in the long run as suggested by VAR results. On other hand FDI exhibits short-term negative effects—which may be accounted to adjustment cost but strong positive impacts could also be observed over time. These findings highlights the role of transparency, impact measurement, and innovative instruments (e.g., Social Impact Bonds, Zero Coupon Zero Principal bonds) in solidifying India’s SSE. Lastly Policy recommendations include there should be sector-specific CSR incentives and increased public-private partnerships to optimise the SSE’s transformative potential.