Adoption in India: Legal Steps & Financial Planning Guide

Written by : Knowledge Centre Team

2025-11-03

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Having a child, family planning, and moving forward in life can feel beautiful. To have a family of your own is a feeling that is, for some, associated with a purpose of life. Therefore, if you are planning to adopt a child and start a new chapter in your life, you should prepare ahead of time and strategically. You must start with the most basic understanding of the legal proceedings and financial planning. Adoption in India is not that difficult, but you must ensure patience, precision, and preparation because it is also a big change for the child. This guide is prepared to help you seamlessly undergo the process of adoption without any worries.

Key Takeaways

Adoption in India is governed by two main laws: JJA (for non-Hindu, abandoned, or surrendered children) and HAMA (for Hindu families)
CARA manages the entire process, including registration and documentation
Prospective parents must meet eligibility criteria (age, marital, and financial) and pass a Home Study
Secure the child’s future with smart budgeting for education, healthcare, and insurance
Adoption calls for patience, empathy, and continuous emotional support to build lasting trust and belonging for the child

Understanding the Legal Framework of Adoption in India

When planning to adopt, understanding the legal process is essential. The adoption procedure in India is well-defined and guided by specific laws to ensure the welfare of the child and the eligibility of prospective parents. It involves documentation, verification, and approvals from authorised bodies. Familiarising yourself with these laws and steps makes the journey more transparent and manageable.

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Key Adoption Laws: JJA vs. HAMA

In India, two major legal frameworks govern adoption: the Juvenile Justice (Care and Protection of Children) Act (JJA) and the Hindu Adoptions and Maintenance Act (HAMA).

Juvenile Justice Act (JJA), 2015: This act allows any Indian citizen, irrespective of religion, to adopt a child. It focuses on the welfare of children who are orphaned, abandoned, or surrendered. The Central Adoption Resource Authority (CARA) is the nodal body overseeing adoptions under this Act.
Hindu Adoptions and Maintenance Act (HAMA), 1956: This act applies to Hindus, Buddhists, Jains, and Sikhs. It allows adoption of both male and female children, ensuring equal rights for the adopted child as a biological one.

While HAMA focuses on intra-community adoption with limited provisions, JJA provides a more inclusive legal route, accommodating individuals and couples from all religions, including inter-country adoptions.

The CARA Process: Registration and Documentation

The Central Adoption Resource Authority (CARA) manages and monitors the entire adoption process in India.

Before initiating, Prospective Adoptive Parents (PAPs) must complete online registration and submit key documents.

Register on the CARA website and fill in the required details
Submit essential documents such as identity proof, address proof, income certificates, and health reports
Upload photographs and marriage certificates (if applicable)
Receive a registration number and confirmation from the Specialised Adoption Agency (SAA)

Eligibility Criteria for Prospective Adoptive Parents (PAPs)

Before adopting, you must ensure that you meet the eligibility guidelines defined by CARA and the respective adoption laws.

A single female can adopt any gender; a single male can adopt only a male child
The minimum age difference between the child and the adoptive parent must be at least 25 years
The combined age of married couples should not exceed 110 years
Couples must have at least two years of stable marriage before applying, unless the adoption involves a relative or a step-parent
PAPs must be physically, emotionally, and financially stable to raise a child

The Home Study and Referral Stage

Once registration is complete, the next step is a home study conducted by a social worker from the adoption agency. This study assesses your emotional readiness, family environment, financial stability, and overall preparedness for adoption. The process ensures that the child is placed in a safe, nurturing, and stable home.

After successful approval, parents are matched with a child through the referral stage. The agency provides detailed information about the child’s health, background, and history. You have the option to meet the child before giving final consent. Once accepted, legal formalities begin, and custody is transferred following court approval.

The Financial Planning Aspect: Costs and Future Security

Adoption involves more than just emotional readiness; it also requires sound financial planning. From documentation costs to future education and healthcare, the financial implications must be considered well in advance. Preparing early helps you offer your child a stable and secure future.

Budgeting for the Child’s Immediate Needs:

As soon as adoption formalities are complete, parents must prepare for immediate financial responsibilities.

Allocate funds for the adoption fee, legal costs, and travel expenses (if applicable)
Prepare for initial childcare essentials such as food, clothing, and nursery setup
Plan for short-term medical expenses and vaccinations
Reassess household budgets to accommodate new expenses related to the child

Setting Up an Education Fund:

Education is a lifelong investment, and setting up a dedicated fund early can relieve future stress. Parents can start by estimating education costs for primary, secondary, and higher education.

Establishing a Systematic Investment Plan (SIP) or child education plan ensures that funds grow steadily over time. Even small, consistent contributions can accumulate into a substantial corpus. Consider inflation and rising tuition fees while determining your investment amount.

Additionally, insurance-linked savings plans and child education plans offered by life insurers provide dual benefits, protection, and long-term wealth creation. By aligning financial planning with your child’s milestones, you can ensure uninterrupted education, even in unforeseen situations.

Did You Know?

In FY 2024-25, India achieved a record 4,515 child adoptions, the highest in 12 years, thanks to CARA's initiatives.

Source: Ministry of Women and Child Development

Planning for Healthcare and Medical Coverage

Healthcare planning must begin the moment a child joins your family. Regular check-ups, vaccinations, and possible medical assessments are part of early adoption care.

Invest in comprehensive health insurance that covers paediatric care and future medical emergencies. Many insurers allow you to add your adopted child to your family floater plan once the adoption process is legally complete.

Besides insurance, create an emergency medical fund to handle unexpected healthcare expenses. A well-prepared financial base guarantees your adopted child’s health and well-being, reinforcing the stability of your family’s future.

Guiding the Emotional Journey: Preparing Your Family and Yourself

Adoption is an emotional commitment that extends beyond paperwork and planning. It requires psychological preparedness, family understanding, and sensitivity. Each family member must be emotionally ready to welcome and nurture the child.

Parents should engage in counselling sessions and adoption workshops to understand the psychological needs of adopted children. Building trust, patience, and empathy is crucial in helping the child adjust. Extended family members should also be sensitised about the process, ensuring a supportive environment for the child to thrive.

Children may take time to adapt, especially if they have faced trauma or loss. Therefore, maintaining consistent affection, open communication, and reassurance can make a significant difference. Remember, love and understanding form the true foundation of adoption.

Role of Life Insurance in Securing Your Adopted Child's Future

While emotional support and care are fundamental, financial security forms the backbone of your child’s well-being. A comprehensive life insurance plan ensures that your adopted child remains financially protected, even in your absence.

With plans from Canara HSBC Life Insurance, you can combine protection and investment under one umbrella. Child insurance plans like iSelect Guaranteed Future Plus or unit-linked savings plans like Promise4Growth Plus help you build wealth over time while safeguarding your child’s future needs. These plans offer benefits such as education goal funding, income continuity, and long-term protection, all aligned with responsible financial planning. By investing wisely, you ensure your adopted child’s aspirations remain secure, regardless of life’s uncertainties.

Conclusion

Adoption in India is not a new topic of discussion, but each instance is a significant moment for the individuals involved. It transforms lives and builds families founded on compassion and hope. However, success in this journey depends on preparation, understanding legal norms, prioritising financial planning, and fostering emotional readiness.

By equipping yourself with knowledge, securing financial stability, and offering unconditional love, you can ensure a smooth transition into parenthood. Adoption is not just about bringing a child home; it is about giving them a lifetime of security, care, and belonging.

Glossary

Central Adoption Resource Authority: The nodal body regulating all legal adoptions in India, abbreviated as CARA
Prospective Adoptive Parents (PAPs): Individuals or couples eligible and prepared to adopt a child
Home Study Report (HSR): A social worker’s assessment of a family’s readiness to adopt and nurture a child
HAMA: The Hindu Adoptions and Maintenance Act is a legal framework allowing Hindus to adopt and maintain children
JJA: A legal framework for adoption, care, and protection of orphaned, abandoned, or surrendered children in India

FAQs

Adoption in India follows laws like the JJA and HAMA, with CARA overseeing registration, home study, and court approval.

Single women, single men (for boys), and married couples meeting age, marital, and financial criteria can adopt.

Key documents include identity proof, address proof, marriage certificate, income statement, health report, and photos.

Costs vary by agency and process, including legal fees, registration, travel, and immediate child care expenses.

Parents should budget for immediate needs, set up education and healthcare funds, and consider life insurance for long-term security.

Disclaimer - This article is issued in the general public interest and meant for general information purposes only. The views expressed in this blog are solely those of the writer and do not necessarily reflect the official policy or position of Canara HSBC Life Insurance Company Limited or any affiliated entity. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the blog or the information, products, services, or related graphics contained in the blog for any purpose. Any reliance you place on such information is therefore strictly at your own risk. You should consult with a qualified professional regarding your specific circumstances before taking any action based on the content provided herein.

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