In India, IFAD is already working with multiple stakeholders on agritech, rural finance and digital agriculture proposals.

The International Fund for Agricultural Development is preparing to enter a new phase of involvement in India by directly investing in agricultural startups, signalling a shift from its traditional grant-based support model. The organisation is expected to close three to four investment deals within the next year, marking a notable shift in its engagement model in the country.

The move comes alongside a broader transformation in IFAD’s global financing approach, where emphasis is gradually moving away from grant-heavy support toward blended finance and private investment mobilisation. The organisation is positioning itself as a catalyst that helps channel external capital into rural innovation systems.

In India, IFAD is already working with multiple stakeholders on agritech, rural finance and digital agriculture proposals. Officials linked to the agency have indicated that recent evaluations have included four to five project ideas emerging from the private sector. The discussions reflect growing interest in scalable farming solutions linked to technology and market access.

The agency’s India portfolio is currently valued at around 1.2 billion dollars and operates in several states including Maharashtra, Meghalaya, Mizoram, Jammu and Kashmir and Uttarakhand. IFAD is also collaborating with NABARD through a co-investment framework and supporting an eight-year rural development strategy launched in May aimed at strengthening climate resilience and agricultural value chains.