Impact Investing: A Contemporary Approach to Social and Economic Development

Abstract Impact investing is a modern investment strategy that seeks to produce both financial returns and quantifiable social and environmental impact. Impact investing combines social responsibility with economic growth, in contrast to traditional investments that are only concerned with maximizing profits. This essay explores the idea, development, goals, and function of impact investing in advancing inclusive development and social entrepreneurship. With particular reference to India, secondary data gathered from journals, reports, and policy documents forms the basis of the study. The study comes to the conclusion that attaining sustainable social and economic development can be greatly aided by impact investing.