India's Rural Transformation Offers Global Lessons in Prosperity and Farmer Resilience

“India has gone from food deficit to feeding 1.4 billion people and exporting to the world,” Lario said, describing rural prosperity as the partnership’s next shared ambition.

During a visit to India, Alvaro Lario, President of the International Fund for Agricultural Development (IFAD), highlighted the country's rural development experience as a source of practical lessons for other developing nations.

His discussions with Union Finance Minister Nirmala Sitharaman focused on expanding the India–IFAD partnership, helping small-scale farmers reach wider markets and bringing more investment into rural businesses. The visit also took him to Meghalaya, where farmer-owned spice processing and an export shipment showed how those priorities are taking shape on the ground.

"India has gone from food deficit to feeding 1.4 billion people and exporting to the world," Lario said, describing rural prosperity as the partnership's next shared ambition. Lario's visit was his first since India and IFAD launched an eight-year country strategy in May 2026. The strategy has two central objectives: accelerating rural prosperity within India and sharing the country's development experience with other developing nations through South-South and Triangular Cooperation.

The partnership also seeks to carry lessons from India's rural development models to producers in other aspirational districts within the country, giving local experience a wider practical use.

Meghalaya's Spices Find a Route to Singapore

In Meghalaya, Lario launched a shipment of organic spices to Singapore through the IFAD-supported Meghalaya Livelihoods and Access to Markets Project, known as LAMP. The shipment illustrated the export opportunities opening up for farmers through relationships with private-sector partners.

The spices were processed at the Bhoirymbong facility, described in the report as the Northeast's first and largest organic spice processing unit. Run by the Eastern Ri-Bhoi Organic Farmer Producer Company, it works with 5,500 farmers and has the capacity to process 10,000 metric tonnes of spices annually.

Sitharaman inaugurated the facility in June. An IFAD investment of INR 2 crore, equivalent to more than US$200,000, helped attract a further INR 30 crore, or about US$3.12 million, through a community–private partnership.

For farmers, the importance of such a facility reaches beyond its processing capacity. Connecting a farmer-owned enterprise with processing infrastructure and commercial buyers creates a route through which local produce can reach overseas markets, making market access a concrete business opportunity.

Lario also met farmer communities in Umwang and Jirang to see the local impact of the US$205.76 million LAMP project. IFAD was the first international financial institution to invest in northeast India, with a regional partnership that has expanded since 1997.

A Partnership Built on Indian Investment and Ownership

India and IFAD's relationship stretches back to 1979. Over that period, IFAD has co-financed 37 programmes and projects, investing US$1.5 billion within a total programme cost of US$4.9 billion and reaching more than six million rural households.

India's role includes providing resources as well as receiving investment. It is a founding Member State, a significant contributor to IFAD's replenishments and one of the first countries to provide a concessional partner loan.

Current operations cover five states and focus on inclusive rural finance, digital agriculture services, cooperative governance and climate-resilient value chains. These areas address several connected needs, from access to finance and useful agricultural services to stronger producer institutions and more resilient businesses.

The funding pattern reflects substantial national ownership. Across active projects, every US$1 invested by IFAD is matched by about US$3 from the Government and other partners, increasing the resources available for rural development.

Taking India's Experience Into Global Discussions

Lario and Sitharaman also discussed IFAD's Fourteenth Replenishment, known as IFAD14, which will support rural transformation through job creation, stronger market connections and greater resilience to shocks.

Its focus is the "first mile" of food systems the producers and rural enterprises where food production and related economic activity begin. Investment at this stage can help small-scale farmers participate more fully in markets and access opportunities beyond basic production.

India's experience offers examples that other developing countries can examine, including farmer-owned processing businesses, partnerships that attract additional investment and public support for rural institutions. Sharing those experiences through South-South and Triangular Cooperation is a central part of the new country strategy.

Following the India visit, Lario was scheduled to represent IFAD at the IMF–World Bank Annual Meetings in Bangkok, Thailand, advocating for greater investment at the first mile of food systems. The Meghalaya spice shipment gives that message a tangible example: rural development connects more directly with prosperity when farmers gain access to the finance, facilities and buyers needed to build their businesses.