亚太经社会ESCAP2024印度农食系统中的包容性商业市场格局研究报告英文版152页_7mb

Summary of the Landscape Study of Inclusive Business in Agrifood Systems in India

Core Content

This document presents a comprehensive landscape study of inclusive businesses (IBs) in the agrifood systems of India, with a specific focus on the states of Haryana and Telangana. The study was conducted by the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) in collaboration with Invest India and supported by the Bill & Melinda Gates Foundation. It aims to identify opportunities, challenges, and strategic recommendations for promoting IBs in the agrifood sector.

Main Objectives

• To map the existing IB models in agriculture and food processing in India.
• To assess the enabling environment for IBs at both the national and state levels.
• To provide actionable insights and strategic recommendations to foster an inclusive business ecosystem.

Key Findings

Inclusive Business Models in Agrifood Systems

• IBs integrate low-income and marginalized communities into their core operations, offering triple wins: economic returns for businesses, improved livelihoods for smallholder farmers and low-income groups, and scalable solutions for governments to achieve developmental goals.
• The study identified 20 IBs in India, with a combined annual revenue of USD 1.05 billion.
• 10 of these companies are considered real inclusive businesses, as they are profitable and bring value to low-income groups.
• 10 companies are potential inclusive businesses, as they engage with and provide value to smallholder farmers and low-income groups but have not been profitable in the past three years.
• These IBs operate in various areas, including market linkage, logistics and supply chain, financial inclusion, sustainable inputs, and digital advisory services.
• Technology is a key enabler for IBs, particularly in improving income opportunities for smallholder farmers by integrating them into supply chains.

National-Level Ecosystem Readiness

• India has a robust national ecosystem that can support the promotion of IBs, including a focus on agricultural transformation, technology adoption, infrastructure development, and digital data infrastructures.
• The government has implemented various targeted schemes and incentives, such as the Pradhan Mantri Kisan Sampada Yojana (PMKSY) and Agriculture Infrastructure Fund (AIF), to support agribusiness.
• Strategic recommendations for promoting IBs at the national level include:
  1. Setting the direction for IB promotion through a dedicated coordinating department and a national advisory board.
  2. Raising awareness and recognizing IBs via success stories and an accreditation system.
  3. Building firm and intermediary capacity to grow IB models through training and mentorship.
  4. Enabling access to finance through tailored debt financing, blended finance, and equity investments.
  5. Facilitating information access via existing platforms and ethical data sharing.
  6. Promoting partnerships between IBs, financial institutions, public bodies, and FPOs.

State-Level Ecosystem Readiness

Haryana

• Haryana has a strong institutional framework and supportive policies that provide a good foundation for promoting IBs.
• Key policies include:
  • Haryana Agri-Business and Food Processing Policy (2018)
  • Haryana State Startup Policy (2022)
  • Haryana Enterprises and Employment Policy (2020)
• Strategic recommendations for Haryana:
  1. Set the direction by nominating a department and establishing an IB steering committee.
  2. Raise awareness through success stories and an accreditation system.
  3. Build capacity by extending the scope of incubators and promoting IB models under existing initiatives.
  4. Enable access to finance through pilot initiatives, incubator support, and targeted funding.
  5. Facilitate partnerships between IBs, government, financial institutions, and research bodies.
  6. Enable access to information by promoting data sharing and knowledge transfer.

Telangana

• Telangana has a strong and supportive ecosystem, with enabling policies, digital infrastructure, and a robust enterprise support system.
• The state contributes 18% to the gross state domestic product (GSDP), indicating the economic importance of the agrifood sector.
• Key policies include:
  • Food Processing and Preservation Policy (2021)
  • Agriculture Data Management Policy (2022)
  • Telangana State Industrial Development and Entrepreneur Advancement Policy (2014)
• Strategic recommendations for Telangana:
  1. Set the direction by establishing a steering committee and an IB framework.
  2. Raise awareness through leveraging existing innovation hubs and promoting success stories.
  3. Establish a common definition and framework for IBs.
  4. Align CSR efforts with IB promotion through the Telangana Social Impact Group (T-SIG).
  5. Promote collaboration between IBs, government agencies, and private sector incubators.

Key Information

• IBs are businesses that integrate low-income and marginalized communities into their operations.
• The agricultural and food processing sectors are crucial to India’s economy, contributing 21% to GVA and employing over 50% of the workforce.
• Challenges include fragmented supply chains, limited market access, low productivity, high wastage, and low technology adoption, especially among smallholder farmers.
• Innovations in IBs include digital advisory services, data-driven agriculture, and improved supply chain linkages.
• Financial and non-financial incentives are provided to support IBs, including access to finance, tax benefits, and training programs.
• Public-private partnerships (PPPs) are encouraged to enhance the growth and scalability of IBs.

Conclusion and Way Forward

• The report concludes that IBs can significantly contribute to inclusive development, sustainable food production, and economic growth in India.
• National-level actions are essential to set a clear direction, raise awareness, and build capacity for IBs.
• State-level actions, particularly in Haryana and Telangana, should focus on policy alignment, institutional support, and enhanced collaboration between stakeholders to promote IBs effectively.

Strategic Recommendations

• At the national level, a National IB Coordination and Advisory Board should be established to guide IB promotion.
• At the state level, Haryana and Telangana should develop state-specific IB frameworks, accreditation systems, and capacity-building programs.
• Collaboration with research institutions, financial bodies, and FPOs is crucial for the scalability and sustainability of IBs.
• Digital platforms and data sharing should be promoted to improve market access and operational efficiency for IBs.