IFAD and India Launch 8-Year Rural Economic Transformation Strategy

The announcement was made at the IFAD-India Partnership for Rural Prosperity event held at Bharat Mandapam, New Delhi, with participation from senior government officials, IFAD leadership, development partners, private sector representatives, and practitioners.

The COSOP 2026-2033 is aligned with the Government of India's Viksit Bharat@2047 vision and focuses on two strategic priorities: enhancing the social, economic, and climate resilience of rural communities; and strengthening knowledge systems to scale proven development models across India and other countries of the Global South.

Addressing the gathering, Anuradha Thakur, Secretary, Department of Economic Affairs, Ministry of Finance, said that "India-IFAD partnership is distinguished by not only its longevity, but its strategic alignment. IFAD's programs in India have remained closely integrated with national priorities, supporting agricultural transformation, livelihood diversification, women's empowerment, and institutional strengthening."

She further said that "Over time, the focus has evolved from basic poverty alleviation to building sustainable, market-oriented rural livelihoods that are resilient to climate and economic shocks."

In his address, Donal Brown, Associate Vice-President at IFAD, emphasised the strength of the partnership. "What we are building together is not a collection of projects, it is a system that connects institutions, finance, infrastructure and markets, and that delivers results for rural people long after any single investment ends. That is what makes this partnership uniquely valuable and uniquely replicable," he said.

The newly launched strategy places strong emphasis on strengthening grassroots institutions such as Self-Help Groups (SHGs), Farmer Producer Organisations (FPOs), and cooperatives, which serve as key platforms connecting finance, technology, infrastructure, and markets, the release said.

Over the past two decades, IFAD-supported initiatives in India have demonstrated significant impact in large-scale financial inclusion of women through SHGs, enhancement of market access for farmers through infrastructure support, and development of women-led enterprises through value addition and e-commerce integration.

The COSOP also aims to position India as a knowledge leader in rural development, facilitating the sharing of successful models, such as inclusive rural finance, cooperative governance, digital agriculture services, and climate-resilient value chains, with partner countries across Africa, Southeast Asia, and Latin America.

On the sidelines of the event, IFAD and NABARD signed a strategic partnership agreement to further strengthen rural finance systems and support innovation in agricultural and allied sectors.

India's partnership with IFAD spans nearly five decades, with 35 rural development projects implemented across multiple states, supporting millions of rural households and contributing significantly to inclusive growth.

The new COSOP reaffirms the Government of India's commitment to transforming rural livelihoods, enhancing resilience, and leveraging innovation for sustainable development, while also contributing to global development cooperation.

- ANI