What companies in Uttarakhand are

Regional economic development Uttarakhand

initial situation

The program supports the state of Uttarakhand in reducing the existing economic and social gap between urban and rural areas through inclusive growth and other measures to reduce poverty. It takes a market-oriented approach and focuses on the development of selected value chains, on economic sectors with high potential for inclusive growth and improving market access for small and medium-sized enterprises (SMEs) and producer organizations. The program also promotes regional marketing and the promotion of Uttarakhand as a business location.

As a result of the previous liberalization, India has seen rapid economic growth and rapid transformations since the early 1990s. One challenge today is to benefit from this growth through better market access on a broad basis, including rural and previously disadvantaged sections of the population, and to allow them to participate in economic development. The Indian central government has declared “inclusive growth” to be a central political goal.

The challenges associated with this are particularly evident in the newly founded state of Uttarakhand, which is characterized by two parallel economic structures: agricultural subsistence farming in the mountain regions and dynamic industrial development in the plains. The extensive disconnectedness intensifies the existing economic and social inequalities.


Creation of an economic environment and an environment for social institutions in which small and medium-sized enterprises (SMEs) as well as the rural population organized in producer groups benefit from the improved framework conditions and innovative market-oriented strategies.


Following a market-oriented approach, the program enables the integration of rural and poor population groups and areas into existing and new markets through the support of SMEs and producer organizations. The approach of utilizing market potential for the needs of poor population groups is based on in-depth individual case analyzes and a systematic dialogue between public, private and civil society organizations on three issues:

  • Development of value chains
  • Promotion of better regional framework conditions for a poverty-oriented market development
  • Regional marketing and promotion of Uttarakhand as a location in a national and international context.

The program particularly focuses on contributing to the networking of economic activities in rural areas. It complements the Uttarakhand government's rural development agenda. There is also close cooperation with the Uttarakhand Livelihood Improvement Project for Himalayas, which is financed by the UK IFAD. Last but not least, it is closely coordinated with other rural financial system and SME development projects carried out by GIZ in India.

The activities include in detail:

  • Bringing individual producers and producer groups in marginalized and backward regions of Uttarakhand closer to markets in the prosperous regions of the state (promotion of SMEs and producer organizations at the “grassroot” level).
  • Linking important agricultural and non-agricultural economic sectors in Uttarakhand and improving access to financial and technical services through systematic application of a value chain strategy that unites the interests of different stakeholders and eliminates traditional supply-related bottlenecks.
  • Development of value chains in order to improve the business and market relationships between production, sales and trade for the benefit of all parties involved. The program works primarily in important agricultural-based production areas such as vegetables, spices, medicinal and aromatic plants, legumes and dairy products, but also in areas such as tourism and handicrafts.
  • Improved support for rural SMEs through a direct financial and technical hands-on partnership with the National Bank for Agriculture and Rural Development (NABARD).
  • Developing methods of promoting grassroots businesses through public-private partnerships (PPP).
  • Capacity development of key stakeholders and partners.
  • Joint campaigns by public and private interest groups to improve the marketing of products and services from the state of Uttarakhand and to attract investments in the Uttarakhand location as part of a regional marketing strategy developed in a participatory manner.