The Himachal Pradesh Forest Department has signed a five-year Memorandum of Understanding (MoU) with the Bharti Institute of Public Policy (BIPP) at the Indian School of Business (ISB) to develop the state’s forest and pastoral economy. The partnership aims to unlock an estimated ₹22,600 crore in value from selected forest resources while protecting ecological balance. It will use field data, digital tools, scientific analysis and community participation to improve natural resource governance.
What the Five-Year Partnership Covers
The MoU brings together the Himachal Pradesh Forest Department, which manages the state’s forest resources, and BIPP, a public policy research and education centre at ISB. BIPP works with policymakers through data-based research in areas such as the environment, climate change, agriculture and public finance. Its forest governance work focuses on community rights, sustainable forest management and stronger links between forest-based communities and markets.
The agreement has four broad components. It will support forest-based economies and community enterprises, develop a Forest Intelligence Platform, create a grazing portal and pastoral database, and provide training for Forest Department personnel and producer companies. The approach treats local communities as partners in managing and adding value to natural resources rather than only as resource users.
How the ₹22,600 Crore Potential Was Estimated
The economic estimate comes from a joint forest inventory conducted by BIPP and the Forest Department. More than 500 forest guards recorded over 2 lakh tree-level records and species-tagged images. Researchers combined these field records with satellite imagery and Artificial Intelligence and Machine Learning (AI/ML) tools, and then checked the results on the ground.
The findings were compiled in a joint publication titled Counting Green Wealth. Maps were prepared for seven species and resource groups, including khair, bamboo, chir pine, amla, wild mango, sal and rhododendron. The estimated value of five major bio-resources is shown below.
| Bio-resource | Estimated untapped value |
|---|---|
| Amla | ₹8,700 crore |
| Pine needles | ₹5,500 crore |
| Wild mangoes | ₹4,800 crore |
| Sal seeds | ₹2,400 crore |
| Rhododendron flowers | ₹1,200 crore |
| Total | ₹22,600 crore |
The estimate is not a licence for unlimited extraction. The Forest Department has indicated that harvesting will remain within a species-specific sustainable yield range. This means the quantity collected must allow the resource to regenerate and must not weaken soil, biodiversity or the wider forest ecosystem.
Digital Tools for Forest and Pastoral Governance
The Forest Intelligence Platform will bring inventory data, maps and management information into a common digital system. It will first be piloted in the Palampur Forest Division, where the inventory data has already informed the division’s working plan. A working plan is the operational document that guides forest management, including protection, regeneration and regulated use. The state intends to expand the platform to other divisions and eventually cover Himachal Pradesh as a whole.
The grazing portal will be developed under the Himachal Pradesh Grazing Policy, 2026. It is expected to connect information on pastoral households, livestock and grazing areas with Aadhaar, Him Pariwar, Bharat Pashudhan and the PEHEL scheme. Such integration can help the administration understand seasonal movement, reduce gaps in service delivery and plan grazing areas using evidence rather than incomplete records.
Pastoralism refers to livelihood systems based on livestock rearing and the seasonal use of grazing landscapes. In a mountainous state, the database can help record customary routes and grazing needs while supporting better coordination between communities and the Forest Department. Its usefulness will depend on accurate data, consent-based information sharing and safeguards for personal details.
Community Rights and Forest-Based Livelihoods
The Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006 provides the legal setting for recognising forest rights that were not formally recorded for generations. The Act is administered by the Ministry of Tribal Affairs and came into force on 31 December 2007. Its framework includes community rights over minor forest produce, traditional grazing and community forest resources, along with responsibilities to protect and conserve those resources.
The MoU’s community enterprise component is intended to convert these resources into better local incomes through processing, collective marketing and direct market links. Women-led producer companies are a major part of this model. The Pir Panjal Jungle Producer Company in Pangi, a women-owned enterprise working with thangi, or Himalayan hazelnut, illustrates how local ownership can connect forest products with formal markets.
The model also builds on earlier work in Himachal Pradesh. BIPP has worked with communities and state agencies on seasonal forest products, community forest resource claims, enterprise formation and market access in areas including Pangi, Chamba, Lahaul and Spiti. These efforts show why tenure security, local institutions, skills and reliable buyers must develop together. Without these links, a rise in extraction could benefit intermediaries more than the communities that protect and collect the resources.
Why the Initiative Matters for Himachal Pradesh
Himachal Pradesh has the conditions for a forest economy based on products other than timber. Amla, pine needles, wild fruits, seeds, flowers and medicinal plants can support food, wellness, handicraft, bioenergy and other value chains when they are collected responsibly and processed closer to the source. Pine needle utilisation can also address a combustible material that contributes to the spread of forest fires when it accumulates on the forest floor, although its removal must be planned carefully to protect soil nutrients and habitat.
The partnership connects conservation with rural development. Better inventories can guide where collection is possible, while digital records can improve traceability from a community enterprise to a buyer. Training can strengthen accounting, processing, quality control and governance in producer companies, with particular benefits for women who participate in collection and enterprise management.
The main challenge is implementation. The state will need clear harvesting limits, transparent benefit-sharing, protection of community rights and regular ecological monitoring. It must also ensure that digital systems do not exclude communities with weak connectivity or turn personal and customary-use data into an administrative burden. If these safeguards are maintained, the MoU can provide a practical example of using science and technology to support both forest conservation and local economic activity.
Key Takeaways
- The Himachal Pradesh Forest Department and ISB-BIPP signed a five-year MoU to develop the state’s forest and pastoral economy.
- The inventory estimated ₹22,600 crore in untapped value from amla, pine needles, wild mangoes, sal seeds and rhododendron flowers.
- More than 500 forest guards collected over 2 lakh tree-level records and species-tagged images for the joint inventory.
- The Forest Intelligence Platform will first be piloted in the Palampur Forest Division before a proposed wider rollout.
- The grazing portal will be developed under the Himachal Pradesh Grazing Policy, 2026, with links to Aadhaar, Him Pariwar, Bharat Pashudhan and PEHEL.
- The Forest Rights Act, 2006 recognises relevant community rights, including rights over minor forest produce, traditional grazing and community forest resources.
