Himachal Pradesh Partners with ISB to Tap ₹22,600 Crore Forest Economy

The Himachal Pradesh Forest Department has entered into a five-year Memorandum of Understanding (MoU) with the Bharti Institute of Public Policy, Indian School of Business (ISB-BIPP). The partnership aims to unlock the state's estimated ₹22,600 crore untapped forest and pastoral economy potential through science and technology-enabled governance.

The agreement was signed in the presence of Chief Minister Thakur Sukhvinder Singh Sukhu. Principal Chief Conservator of Forests Dr Sanjay Sood signed on behalf of the Forest Department, while Professor Ashwini Chhatre, Executive Director of BIPP, ISB, signed for the institute. Chief Minister Sukhu stated that the initiative positions the state to integrate science, local communities, and government administration to transform forest governance.

The government plans to focus on maximising the economic potential of local species, including medicinal plants such as harad and bel, alongside assessing the commercial and nutritional value of thangi, also known as hazelnut. This collaboration builds upon a joint forest inventory conducted by ISB-BIPP and the Forest Department.

During the inventory exercise, more than 500 forest guards collected over two lakh tree-level records and species-tagged images. This data was integrated with satellite imagery, artificial intelligence, and machine learning tools, followed by ground-level validation. The findings are compiled in a joint publication titled “Counting Green Wealth,” which features maps for seven species, including khair, bamboo, chir pine, amla, wild mango, sal, and rhododendron.

According to the inventory data, five major bio-resources account for an estimated ₹22,600 crore in untapped economic value. These include amla at ₹8,700 crore, pine needles at ₹5,500 crore, wild mangoes at ₹4,800 crore, sal seeds at ₹2,400 crore, and rhododendron flowers at ₹1,200 crore. The Forest Department emphasized that resource extraction will be maintained within a sustainable, species-specific yield limit to protect ecological balance.

The initiative also supports community-led forest enterprises, citing the Pir Panjal Jungle Producer Company in Pangi—a women-owned enterprise operating in the thangi sector—as a model for local participation. Data from the inventory is already being applied to the Palampur Forest Division's working plan, with plans to expand the model statewide.

Professor Ashwini Chhatre noted that the economic estimates derive their credibility from extensive fieldwork conducted by forest guards over several months. Dr Aarushi Jain, Director of the Bharti Institute of Public Policy at ISB, added that the data will directly inform forest management and pastoral governance across the state.

The MoU outlines four primary areas of cooperation: developing forest economies and community enterprises, creating a Forest Intelligence Platform, establishing a grazing portal and pastoral database, and conducting training and capacity-building programs for Forest Department personnel and producer companies. The Forest Intelligence Platform will pilot in Palampur before statewide rollout, while the grazing portal will align with the Himachal Pradesh Grazing Policy, 2026, integrating with platforms such as Aadhaar, Him Pariwar, Bharat Pashudhan, and the PEHEL scheme.

"This partnership demonstrates how traditional sectors like forestry can leverage modern technology, data analytics, and grassroots participation to unlock substantial economic value. By mapping resources accurately and engaging local communities and women-led enterprises, Himachal Pradesh is establishing a structured framework for sustainable rural development. For entrepreneurs and policymakers alike, this highlights the commercial viability of integrating scientific data into resource management, creating scalable opportunities while maintaining ecological balance." — Dr. Shishir Gupta, Founder & CEO, StartupLanes