The socialite took part in a three-day tour of the country to promote her handbag collection and open a new department store.
During her visit to Mumbai on Sunday, Hilton gave $100 (£64) to a woman who was standing on the side of the road with her two children, reports IBN.
The World According to Paris star apparently continued to donate money to other needy Indians throughout the day.
Hilton took to Twitter to say that she was saddened to see so much poverty, writing: "India is beautiful, but some parts are very poverty stricken. Broke my heart to see babies sleeping on the streets :("
She also asked her Twitter followers to suggest reputable Indian charities to which she could donate.
She added: "After seeing what I've seen, I want to help make a difference".
The star left India on Monday to continue her promotional tour in Ibiza.
Hilton revealed that she was asked to star in several Hindi films while travelling throughout India.
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