New Delhi, 7 October 2024 – IFAD-supported projects in India have improved access to financial services for poor and disadvantaged rural people, including women. Banks are enthusiastic to provide loans to self-help groups and federations working with the investment projects due to the good financial discipline developed via strong facilitation and community development. Some interventions have also facilitated access to insurance products. Dr Kouessi Maximin Kodjo, Lead Evaluation Officer in the Independent Office of Evaluation of IFAD (IOE), and Ms Nimisha Mittal presented these findings during the India Country Strategy and Programme Evaluation (CSPE) national learning workshop, which was held in New Delhi, on 7 October 2024.

There is evidence of capacity development of grassroots member-based organizations and contributions to linking small-scale producers to markets. In some cases, this has included the construction of collection centres and roads. In addition, some projects have supported value addition and off-farm employment opportunities.

“The projects contributed to the enhancing the sustainability of agricultural production systems and to increasing the access of smallholders to financial services. Community level cadre played active roles for providing agricultural extension advice and facilitating loan applications with banks”, affirmed in this regard Dr Indran A. Naidoo, IOE Director, in his opening statement.

Co-organized by the Government of India and IOE, in collaboration with IFAD’s Asia and Pacific Division, the in-person workshop brought together a wealth of high-level attendants, including, and Ms Annies Kanmani Joy, Deputy Secretary of the Department of Economic Affairs, Ministry of Finance of India. Participants joined the event representing the government of India, development partners, civil society organizations, private sector partners, and IFAD senior management and staff. Some of the participants also joined online.

“Thanks to the CSPE, we know what is working and what we can do better, it helps us strategize in making plans and fostering partnerships, helping us fight rural poverty more effectively. It boosts farming and livelihoods by bringing in better practices for farming and water management. It empowers rural communities by supporting groups that are the backbone of many projects. It brings new ideas and contributes towards strengthening local institutions. In short, the CSPE is key to making sure that we are on the right track to help rural communities strive for better”, said Ms Annies Kanmani Joy, delivering remarks on behalf of Ms Manisha Sinha, Additional Secretary of the Department of Economic Affairs, Ministry of Finance of India.

During the workshop, participants discussed the main findings, recommendations and issues emerging from the CSPE. The meeting also provided an opportunity to focus on the opportunities and challenges of the partnership between IFAD and the Government of India in the near future and discuss strategic priorities for IFAD's upcoming programme.

This CSPE is the third country programme evaluation conducted in India, and it covers the period 2016-2022, including 13 projects with IFAD financing US$737 million of the US$ 2.46 billion funding. The evaluation also covered non-lending activities and the country strategy, with main reference to the 2018 country strategic opportunities programme.

“This workshop today is very important in helping to inform the development of IFAD’s new Country Strategy and Opportunities Programme for India, by bringing together key stakeholders in the India-IFAD partnership. One area in the CSPE report which is central to our priorities is ensuring the efficiency of our portfolio. Efficiency is not just about delivering IFAD’s programme of work, but about transforming financial resources into tangible development efforts in a timely manner”, remarked Donal Brown, Associate Vice-President of IFAD's Department for Country Operations.

Workshop discussions confirmed that the IFAD country programme has been relevant, well aligned with government policies and priorities. The IFAD programme generally maintained a focus on disadvantaged areas and disadvantaged groups, notably scheduled tribes, particularly vulnerable tribal groups, scheduled castes, and poor rural women.

The interventions supported by IFAD have made a strong contribution to social and human capital and strengthening institutions of and for the rural poor. Operating in convergence not only enhanced the results with project investment but also provided the projects with the opportunities to influence to some extent how the government schemes are planned and implemented.

IFAD-supported projects contributed to improved and sustainable agricultural production systems and livelihoods to a varying degree. For instance, improved techniques, such as applying the system of rice intensification, vermiculture or mixed cropping, or use of improved seeds, were reported to increase yields.

Community mobilization has been a key element in the portfolio and contributed not only to making production systems and livelihoods remunerative and resilient, but also to social empowerment. Self-help groups and federations have been the basis of eight projects, while production and marketing organizations have been used in others.

Several innovations have been successfully introduced, such as social, institutional, technical and financial products. There were also increasing efforts for improving management information systems, preparing knowledge products and dissemination at project level. Moreover, knowledge exchanges between projects have contributed to some replication and adaptation of good practices within the portfolio.

Interventions during the workshop also highlighted on-going challenges. Progress in connecting small-scale producers to remunerative markets and generating off-farm income earning opportunities has not been consistent. Projects have supported grassroots organizations to better connect them to the markets and promote commercialization, but the approach has not always enabled them to independently continue to operate.

Furthermore, the focus on natural resource management has been more on infrastructure sub-projects and natural resource utilization, rather than sustainable management of natural resources with attention to broader ecosystems. There have also been some gaps in environmental safeguards with risk of adverse impacts on the environment.

Insufficient progress has also been made in partnership building with research institutions, the private sector or other non-governmental actors, as part of strategic and programmatic collaboration.

To build on the successes of the IFAD-programme, while addressing its ongoing challenges, the CSPE recommended that the next COSOP should clearly establish IFAD’s added value, to be supported by multi-pronged strategies based on the profiles of target groups, partners’ capacities, and types of development challenges to be addressed.

The CSPE also recommended that IFAD ensure adequate attention, investment and capacities in social capital enhancement for strengthening grassroots organizations; strengthen market and business orientation in interventions aimed at improving small-scale producers’ access to markets; and increase the care and considerations for the environment, natural resource management and climate resilience in a more integrated manner.

India became a member state of IFAD in 1977, and the first IFAD-financed project began in 1979. IFAD opened a country office in Delhi in 2001. India is not only the largest recipient of IFAD’s investments (US$1.22 billion towards a total portfolio cost of US$3.87 billion for 32 projects), but also a significant contributor in terms of contributions to replenishment of IFAD financial resources. Although agriculture constitutes only approximately 17 per cent of GDP, it plays an important role in the lives of the rural population. Almost half of the working population relies on the agriculture sector for employment, and 85 per cent of rural households rely on marginal or small landholdings. India is a net exporter of many agri-products, but some groups still face food deficits.

For further information, please contact Dr Alexander Voccia, Senior Evaluation Communication & KM Specialist [here].

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• To access the opening statement by Dr Indran A. Naidoo, please click here.

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