India and IFAD launched a new eight-year Country Strategic Opportunities Programme (COSOP) to strengthen the rural economy. The strategy covers 2025–2033 and focuses on climate-resilient agriculture, rural finance, women's empowerment, and tribal development. IFAD has been partnering with India since 1979, investing over $1.3 billion across 37 projects. NABARD is the nodal agency for IFAD-funded projects in India, channelling loans to states for rural livelihoods and agricultural development.

The India-IFAD COSOP 2025–2033 is not merely a funding agreement — it represents a strategic alignment between India's rural development priorities and IFAD's global mandate of reducing rural poverty. IFAD is a UN specialised agency and international financial institution that provides low-interest loans and grants to developing countries for agriculture and rural development.

For India, the significance lies in three areas. First, climate resilience: the new COSOP explicitly targets smallholder farmers and tribal communities facing climate stress — aligning with India's commitments under NDCs and its 2070 net-zero goal. Second, financial inclusion: IFAD projects in India have historically worked through SHGs and microfinance to extend credit to the rural poor, directly complementing NABARD's mandate. Third, gender mainstreaming: women's empowerment in rural livelihoods is a cross-cutting theme, linking to schemes like DAY-NRLM.

NABARD's role as the nodal agency is critical — it appraises projects, channels funds to state governments, and ensures compliance with IFAD's environmental and social safeguards. For NABARD Grade A aspirants, understanding this institutional triangle — GoI, IFAD, NABARD — is essential. Examiners frequently test who the nodal agency is, the duration of the new strategy, and IFAD's cumulative investment in India.