India’s rural economy stands at the confluence of two urgent national imperatives: ensuring sustainable livelihoods for its farmers and mitigating the growing threats of climate change and ecological degradation. As an agricultural nation with over half its population dependent on farming, we can no longer afford to treat environmental sustainability and economic development as separate pursuits. Instead, we must embrace a future where environmental stewardship is the pathway to livelihood.
The Economic Survey 2024-25, highlights that the ‘Agriculture and Allied Activities’ sector has long been the backbone of the Indian economy, playing a vital role in national income and employment. In recent years, the agriculture sector in India has shown robust growth, averaging 5 per cent annually from FY17 to FY23, demonstrating resilience despite challenges. In the second quarter of the 2024-25 fiscal year, the agriculture sector recorded a growth rate of 3.5 per cent. The Gross Value Added (GVA) of agriculture and related sectors, have improved from 24.38 per cent in the fiscal year FY15 to an impressive 30.23 per cent by FY23. security especially for our farmers.
In recent years, the concept of green livelihoods has gained traction globally, advocating for income-generating activities that also preserve or restore the environment. For India, this concept is not merely aspirational — it is essential. The adverse effects of erratic monsoons, declining soil fertility, groundwater depletion, and biodiversity loss are being felt most acutely by smallholder farmers. Unless addressed with urgency and innovation, these challenges threaten both food security and rural prosperity.
This is where environmental stewardship — the responsible use and protection of the natural environment through conservation and sustainable practices — can transform rural economies. Empowering farmers to become active custodians of their ecosystems is not only ethically compelling but also economically prudent.
Across India, we are already witnessing green shoots of this transformation. Agroecological farming, which integrates local knowledge with ecological principles, is helping farmers reduce input costs while improving soil health and yields. Community-led watershed management initiatives in states like Maharashtra and Telangana have rejuvenated thousands of hectares of degraded land, significantly improving agricultural productivity and water availability. Agroforestry — the integration of trees with crops — is enhancing carbon sequestration while providing farmers with additional sources of income through fruits, fodder, and fuelwood.
But these initiatives need to scale. To do so, we must address structural and systemic barriers. First, farmers must be equipped with the knowledge and tools to adopt sustainable practices. Extension services must be reimagined as partnerships, where local wisdom is valued and integrated with scientific inputs. Digital platforms, when made inclusive, can also play a powerful role in disseminating information and connecting farmers to markets.
Second, financial systems need to support the transition to green livelihoods. Access to affordable credit and insurance — tailored to reward sustainable practices — can de-risk innovation for smallholder farmers. The public and private sectors alike must invest in green infrastructure — from solar-powered irrigation to climate-resilient seed banks.
Encouragingly, India is already laying the groundwork for this shift. In recent years, the government — through the Ministry of Science and Technology and the Ministry of Education — has made significant strides in fostering innovation-driven rural development. By establishing Technology Innovation Hubs (TIHs) and Centres of Excellence (CoEs), the country is promoting a structured ecosystem for advanced research, entrepreneurial development, and deep-tech solutions that can benefit agriculture and allied sectors.
Flagship programmes such as the National Mission on Interdisciplinary Cyber-Physical Systems, with a substantial investment of ₹3,660 crore, and specialized CoEs focusing on AI applications in agriculture, healthcare, and sustainable urban systems (₹990 crore+) are helping bridge the gap between cutting-edge technology and grassroots impact.
Finally, we must recognize the power of collective action — where the government, civil society, and grassroots institutions come together. Empowering these community-based organizations is essential for building both resilience and scale. One compelling example is the Jindal Foundation, which has partnered with the government to provide financial assistance and modern agricultural equipment to over 6,400 small and marginalized farmers. As a result, the Foundation has helped increase the average annual income of these farmers from ₹1.5 lakh to ₹4.48 lakh — a remarkable leap toward financial security and dignity.
At the recent PRAGATI Founder Forum hosted by IIT Ropar and supported by the Department of Science and Technology, Union Minister Dr. Jitendra Singh noted a striking shift: nearly 50% of India’s startups now emerge from Tier 2 and 3 towns, with agriculture and rural innovation taking center stage. IIT Ropar’s collaboration with Puri Oil Mills stood out as a compelling model of industry-academia co-creation, showing how traditional sectors can be reimagined through tech. With India climbing from 81st to 39th in the Global Innovation Index, and initiatives like the Purple Revolution powering 3,000+ grassroots startups, a new era of inclusive, rural-first innovation is clearly underway. As 70% of Anusandhan NRF funding is projected to come from non-government sources, the message is clear: India’s innovation engine is no longer metro-bound — it’s grassroots-powered and growing smarter.
As we look ahead, India has a unique opportunity to show the world that agricultural development and environmental sustainability can go hand in hand — not in theory, but in practice. Greening livelihoods is not about imposing external solutions; it is about enabling our farmers to become architects of a regenerative rural economy.
This vision demands commitment, collaboration, and courage. But most of all, it demands that we trust and invest in those who already live closest to the land. By empowering farmers through environmental stewardship, we can secure not only their livelihoods, but also our planet’s future.
Dr. Mukesh Kestwal is the Chief Innovation Officer at IIT Ropar