Even when he was living in France Raza always felt deeply concerned about the struggles of young Indian artists and the inadequate opportunities for them to achieve their full potential. On his almost annual sojourns to India, he would always find time and energy to meet young artists and see and discuss their works. He never forgot the hard times he and other artist (M. F. Husain, F. N. Souza, H. A. Gade, S. K. Bakre and Krishnaji Ara) had when they were young and putting together the path-breaking Progressive Artists Group.

In 2001, Raza created the Raza Foundation to support young artists in India. It began by granting awards to promising Indian artists, beginning with two awards annually, one in visual arts and one in poetry. The awards were later expanded to cover classical music and classical dance as well. Each award carries a sum of Rs. one lakh and a citation. Some of the best, the most innovative and daring artists, poets, musicians and dancers have been recipients of these highly coveted and prestigious awards.