Why in news?
At the IFAD–India Day held in Rome, the Government of India showcased its achievements in rural development and women’s empowerment. Indian officials highlighted how India’s partnership with the International Fund for Agricultural Development (IFAD) has supported community‑led projects that improve livelihoods and reduce poverty.
Background
IFAD is a specialised agency of the United Nations established in 1977 to finance projects that combat poverty and hunger in rural areas. It provides concessional loans and grants to countries for programmes that boost agriculture, improve market access and empower marginalised communities. India is a founding member of IFAD and one of its largest beneficiaries.
India–IFAD partnership
- Extensive collaboration: Over the past 48 years, India and IFAD have co‑financed 36 rural development projects worth about US$4.4 billion, with IFAD contributing US$1.5 billion. These projects span states such as Meghalaya, Maharashtra, Jammu and Kashmir and Uttarakhand.
- Community‑led models: Projects emphasise building self‑help groups, strengthening producer collectives and enabling rural women to lead enterprises. For example, initiatives in Meghalaya have improved market access for 45,000 rural enterprises, while programmes in Maharashtra expand income opportunities for women.
- Climate resilience: IFAD‑supported projects help farmers adopt climate‑smart practices, diversify crops and improve soil health. In Jammu and Kashmir, around 300,000 farmers benefit from measures to adapt to erratic weather and water scarcity.
- Co‑financing leverage: Current projects worth US$459 million reflect a high co‑financing ratio, meaning each dollar of IFAD funding attracts more than two dollars from the government and other partners. This allows for larger, more impactful interventions.
About IFAD
- Mandate: To eradicate poverty and hunger in rural areas by investing in smallholder agriculture, improving nutritional outcomes and creating market opportunities.
- Membership and governance: IFAD has 180 member states. Its Governing Council, composed of all member countries, meets every three years and elects an Executive Board that oversees programmes.
- Headquarters: Rome, Italy. IFAD is part of the United Nations Development System and works alongside the Food and Agriculture Organization and the World Food Programme.
- Financing instruments: The agency provides loans on concessional or highly concessional terms and grants for research, innovation and capacity‑building. Grants can be global, regional or country‑specific.
Conclusion
India’s collaboration with IFAD demonstrates how international partnerships can scale up locally driven solutions. By empowering women, improving market linkages and promoting climate resilience, these programmes advance sustainable development in rural India and offer models for other countries.
Source: Press Information Bureau
