The flow of money into political coffers is not just a matter of logistics but a reflection of influence, power dynamics, and strategic alliances. With the latest available data from the Association for Democratic Reforms (ADR) for the financial year 2023-24, supplemented by insights from credible sources like The Indian Express and The Hindu, a clear picture emerges of which political party commands the lion’s share of financial donations in India.
The Bharatiya Janata Party (BJP), the country’s ruling party, stands head and shoulders above its competitors, amassing a staggering ₹2,604.74 crore in donations exceeding ₹20,000, a figure nearly nine times that of its closest rival, the Indian National Congress (INC). This financial dominance raises critical questions about transparency, influence, and the implications for India’s democratic process.
The ADR report, based on data submitted to the Election Commission of India (ECI), reveals that the BJP’s financial prowess is unmatched among national political parties, which include the INC, Aam Aadmi Party (AAP), Bahujan Samaj Party (BSP), Communist Party of India (Marxist) (CPI(M)), and National People’s Party (NPEP). In 2023-24, the BJP collected ₹2,243 crore from 8,358 contributions, a sum that dwarfs the INC’s ₹281.48 crore from 1,994 donations.
Other national parties, such as the AAP and CPI(M), trailed even further, with significantly smaller amounts. The BJP’s financial haul is not just a numerical triumph but a testament to its ability to attract substantial support from corporate entities, electoral trusts, and individual donors. Notably, 88.9% of donations to national parties—amounting to ₹2,262.5 crore—came from corporate and business sectors, with the BJP securing ₹2,064.58 crore of this, over nine times the corporate donations received by all other national parties combined.
A significant portion of the BJP’s funding comes through electoral trusts, which act as intermediaries channeling contributions from companies and individuals to political parties. The Prudent Electoral Trust, the largest donor to national parties, contributed ₹723.6 crore to the BJP, accounting for 32.25% of its total funds, while also donating ₹156.4 crore to the INC. Triumph Electoral Trust added ₹127.5 crore exclusively to the BJP’s coffers.
These trusts, established to facilitate tax-exempt contributions, have been criticized for adding opacity to political funding, as they obscure the original sources of donations. For instance, companies like Bharti Airtel and GMR, which donated through Prudent, do not appear directly on the BJP’s donor list, raising questions about the transparency of these financial flows. The Supreme Court’s 2024 ruling declaring the Electoral Bond Scheme unconstitutional highlighted similar concerns, noting that anonymous donations undermine voters’ right to information.
Although the BJP and INC did not disclose bond-specific contributions in their 2023-24 reports, regional parties like Bharat Rashtra Samity (BRS) and YSR Congress reported significant bond funding, suggesting the scheme’s lingering impact on political financing.
Corporate donations form the backbone of the BJP’s financial dominance. Infrastructure and pharmaceutical companies, often reliant on government contracts, contributed heavily, with 23 infrastructure firms alone donating ₹227 crore to the BJP. This pattern mirrors trends observed in electoral bond purchases between 2019 and 2024, where sectors like infrastructure and mining were prominent.
Companies such as Derive Investments (₹50 crore to BJP, ₹3.2 crore to INC) and Acme Solar Energy Pvt. Ltd. (₹51 crore) feature among the top donors, with the BJP as the primary beneficiary. The ADR report notes that four of the top donor companies to the BJP are under investigation by central agencies, a detail that fuels speculation about the nexus between corporate donations and political influence. In contrast, the INC, while receiving substantial funds from Prudent Electoral Trust and individual leaders like Sonia Gandhi and Rahul Gandhi, struggles to match the BJP’s corporate appeal, securing only ₹190.3 crore from corporates compared to the BJP’s ₹2,064.58 crore.
The disparity in funding is not merely a matter of numbers but reflects deeper structural and political realities. The BJP’s position as the ruling party, governing 18 states and the central government, makes it a natural magnet for donations. Its widespread organizational reach and electoral success—evidenced by its dominance in the 2019 Lok Sabha elections—enhance its appeal to donors who see it as a safe bet for influence. Posts on X, while not conclusive, capture public sentiment on this issue, with users noting that the BJP’s financial dominance is unsurprising given its national presence, though some allege it reflects systemic favoritism. For instance, Megha Engineering’s ₹584 crore donation to the BJP via electoral bonds, underscoring the scale of corporate backing.
However, the financial landscape is not without its shadows. The ADR report reveals that 60% of funds received by national parties between 2004-05 and 2022-23 came from “unknown sources,” including electoral bonds, with the BJP alone declaring ₹1,400.23 crore from such sources in 2022-23.
This lack of transparency, coupled with the Supreme Court’s ruling against electoral bonds, raises concerns about accountability. The INC, while also benefiting from undisclosed funds (₹315.11 crore in 2022-23), pales in comparison. Regional parties like the BRS (₹495.52 crore via bonds) and DMK (₹60 crore) have been more forthcoming about bond contributions, but the overall opacity in political funding persists.
The Election Commission’s investigations into registered but unrecognized political parties (RUPPs) further highlight systemic issues, with some RUPPs suspected of money laundering and tax evasion, as seen in cases like the Manav Adhikar National Party and Kisan Party of India.
The implications of the BJP’s financial dominance are profound. On one hand, it enables the party to mount extensive campaigns, leveraging resources for media, rallies, and voter outreach. The 2019 general election, estimated to cost ₹55,000 crore, underscores the role of money in electoral success. On the other hand, the concentration of corporate donations raises questions about policy influence. The Finance Act of 2017, which removed the 7.5% cap on corporate contributions, has amplified this trend, allowing companies to donate unlimited sums. Critics argue this creates a quid pro quo dynamic, where donations secure political favors, a concern echoed by the Supreme Court’s observation that corporate contributions are often “business transactions” for benefits.
In contrast, parties like the AAP, which emphasizes transparency, and the BSP, which reported no voluntary contributions in 2023-24, struggle to compete financially. The INC, despite its historical prominence, relies heavily on individual donors and smaller corporate contributions, limiting its ability to match the BJP’s organizational might. This financial imbalance could skew electoral competition, favoring parties with deeper pockets and potentially marginalizing smaller players.
As India approaches future elections, the question of political funding demands greater scrutiny. The BJP’s financial supremacy, driven by corporate and trust donations, reflects its political dominance but also underscores the need for reform. Restoring transparency, perhaps through stricter disclosure norms or reviving aspects of the scrapped electoral bond scheme with mandatory donor identification, is crucial for leveling the playing field. Until then, the BJP’s financial juggernaut will likely continue to shape India’s political landscape, raising critical questions about the intersection of money, power, and democracy.