India & IFAD—Partnership in rural livelihoods and food security

The government of India and the International Fund for Agricultural Development (IFAD) celebrated their long-standing partnership in Rome as they showcased successful models of rural transformation that can be replicated and scaled-up across the Global South.

“The investments India and IFAD have made together show what scalable, sustainable development can look like, particularly in the areas of women’s empowerment, food systems transformation and agroecological transitions,” said IFAD president Alvaro Lario in his opening remarks. “Many of the joint investments we delivered together in India have since become models for IFAD programmes globally and for other financial institutions and development organizations and governments around the world.”

He commended the crucial role India plays in South–South and Triangular Cooperation – in particular, India’s leadership in building rural institutions and value-chain innovation.

IFAD invests in India to integrate small farmers into the market and improve their incomes, sustainably transforming small-scale agriculture into agri-businesses. In the past, for example, IFAD-supported projects pioneered a powerful model of women’s collectives that have transformed from small groups of women saving together in the 1980s to robust 21st century institutions through which women can access credit, training, and markets — enabling them to start microenterprises, expand farms, and improve their families’ incomes.’

Speaking at the event, Anu Mathai, additional secretary (department of economic affairs), ministry of finance, government of India, and IFAD alternate governor, said, “India’s partnership with IFAD is built not only on financial support and project implementation, but also on shared values. We believe in development that is inclusive, sustainable, equitable, and participatory. We believe that the real drivers of transformation are rural communities and that our role is to support them with the tools, knowledge, and institutions they need to improve their lives. IFAD has consistently upheld these principles, and it is this alignment of vision that has made our partnership so enduring.”

The India portfolio is one of IFAD’s largest and over 48 years, IFAD has worked closely with the Government of India to finance 36 rural development projects across the country for an overall value of US$ 4.4 billion. This includes US$ 1.5 billion of IFAD’s direct investment, and six currently ongoing projects – including two at the start-up phase — total US$ 459 million. Currently, the domestic co-financing ratio — the proportion of funds invested by India for every dollar mobilized by IFAD – is 2.65 (well above the global target of 0.8), reflecting the high value and level of trust India has placed on the partnership.

Through its India investments, IFAD supports farmers to take up climate-smart and sustainable agricultural practices, such as diversified crops, to build resilience to climate change and market variability. The portfolio also facilitates innovative partnerships between farmers, their organizations and private companies.

Dr Jujjavarapu Balaji, alternate permanent representative to IFAD, said, “It is a privilege to celebrate the successful partnership between India and IFAD here in Italy. As we look into the future, we remain committed to working closely with IFAD to scale up successful models and ensure that rural communities are equipped to meet the challenges and opportunities of a changing world.”

India, a founding member of IFAD, is one of the world’s fastest growing economies and a global leader in reducing poverty at scale. Among IFAD’s largest donors and borrowers, it is a critically important partner. Current projects address pivotal issues such as increasing market access to over 45,000 enterprises in Meghalaya, and enhancing rural women’s capacity to engage in remunerative employment in Maharashtra. A new project in Jammu and Kashmir aims to enhance the climate resilience of 300,000 small-scale farmers and one with the Uttarakhand government aims to double incomes of rural livelihoods and reduce migration.

Together, India and IFAD are focused on building people’s skills, strengthening community groups, and helping them gain better access to services, resources and markets so they can lead their own development and improve their lives.