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India’s development model, blending local ownership with global credibility, is redefining South-South Cooperation for an era beyond aid dependency.
India's transition from one of the largest Official Development Assistance (ODA) recipients to a proactive development leader and emerging donor marks a significant change in the global development landscape. This transformation reflects a realignment of India’s foreign policy and development philosophy, driven by the need for collaborative solutions to shared challenges such as climate change and livelihood insecurity.
The India-UN Fund blends national ownership with global credibility, avoiding the political frictions of traditional aid.
At the heart of this transformation lies the India-United Nations (UN) Development Partnership Fund, established in 2017 under the UN Office for South-South Cooperation (UNOSSC). India has committed US$150 million over a decade to the Fund, including dedicated windows for Commonwealth, Caribbean, and Pacific Island countries. By integrating India’s resources with the UN’s multilateral frameworks, the Fund combines national ownership with global credibility while avoiding bilateral political frictions. It has become a cornerstone of India’s development diplomacy, supporting over 85 initiatives in nearly 65 countries across Africa, Asia, the Pacific, and the Caribbean. Focused on renewable energy, climate-resilient agriculture, and ecosystem restoration, it advances the Sustainable Development Goals (SDGs) in regions most vulnerable to climate threats.
The Fund prioritises Least Developed Countries (LDCs), Landlocked Developing Countries (LLDCs), and Small Island Developing States (SIDS), ensuring that vulnerable nations receive tailored support. Unlike conventional aid systems, the Fund operates on a demand-driven basis: project proposals originate from partner governments, ensuring alignment with national priorities rather than donor agendas. This approach promotes genuine local ownership and context-sensitive interventions.
Another distinctive feature is its diverse implementation model. Partnering with the UN system ensures transparent, efficient execution, providing a blueprint for emerging donors with limited field presence to scale their development impact. India also draws from its domestic development experience, offering cost-effective solutions such as digital public infrastructure and capacity-building programmes that are often more affordable than Western alternatives.
By linking finance with capacity-building, India is shaping a new South-South model—comprehensive, scalable, and sustainable.
Capacity-building remains a core focus. By training local personnel, strengthening institutions, and facilitating technology transfer, the Fund ensures project sustainability beyond its funding cycle. Supported by UNOSSC’s neutrality, it benefits from multilateral legitimacy and insulation from bilateral political dynamics, making it a credible model for replication by other emerging donors.
The accomplishments of the Fund not only highlight its capabilities but also the wider potential of a results-oriented South-South Cooperation (SSC) model. To effectively address global challenges and establish a replicable standard for other emerging donors, India must establish mechanisms that uphold, expand, and assess impact.
Monitoring and communication are key. While project reports exist, they are scattered and inconsistent. A real-time results dashboard consolidating outputs, outcomes, and SDG linkages would strengthen transparency and demonstrate India’s commitment to evidence-based cooperation.
Furthermore, building inclusive partnerships is equally crucial. Collaboration with local civil society, women-led enterprises, and research institutions ensures that projects are both effective and socially embedded. Involving communities from the design stage enhances sustainability and reflects India’s democratic ethos in global cooperation.
Scaling successful pilots across regions can further amplify impact. Renewable energy projects tested in the Pacific could inform coastal initiatives in Africa, while climate-smart agriculture from East Africa could guide strategies in South Asia. Expanding regional cooperation reinforces India’s role as a facilitator of cross-regional knowledge sharing within the Global South.
India’s development cooperation is guided not by leverage, but by solidarity—the world as one family.
Finally, India should institutionalise strategic leadership by creating a centralised impact portal that clusters initiatives thematically, such as clean energy, coastal resilience, and sustainable food systems. It can also further this stance by deepening partnerships with the private sector, including Indian firms specialising in clean technologies and digital innovation. Strengthening ties with the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC), the African Union’s Agenda 2063, and the Pacific Islands Forum can help scale successful models, while periodic independent evaluations will ensure adaptability to evolving global challenges.
The India-UN Global Capacity-Building Initiative, launched in August 2025, complements the Fund by focusing on training, knowledge exchange, and pilot programmes that share India’s technical expertise. Coordinating the two mechanisms would enhance their impact; financing produces tangible results while capacity-building develops institutions and skills, leading to more comprehensive and sustainable development solutions.
By embedding these practices, India positions itself as a norm-setter among emerging donors. Combining demand-driven, non-conditional assistance with climate-responsive solutions demonstrates that South-South Cooperation can be principled, efficient, and outcome-focused. This approach strengthens India’s credibility in multilateral diplomacy. During its G20 Presidency in 2023, the Fund embodied the “Voice of the Global South,” showcasing India’s ability to translate solidarity into measurable outcomes.
Real-time impact tracking and local partnerships can turn India’s development diplomacy into an institutional legacy.
Beyond the Fund, India’s wider development cooperation also offers lessons. India positions itself as a “development partner” rather than a donor, guided by the principle of Vasudhaiva Kutumbakam or “the world is one family.” By employing multiple instruments, grant-in-aid, lines of credit, and technical assistance, India provides a comprehensive model of cooperation grounded in solidarity rather than geopolitical leverage.
The India-UN Development Partnership Fund serves not just as a funding tool but also as a diplomatic strategy and a representation of solidarity among Global South nations. In an era demanding flexible, evidence-based cooperation, this model affirms that leadership in development cooperation is increasingly shared beyond traditional donors. For the Global South, it presents an alternative perspective: one in which solidarity is grounded in evidence, supported by partnerships, and expanded for lasting impact. As India assumes the BRICS (Brazil, Russia, India, China, and South Africa) presidency, this model serves as a timely blueprint for translating the Global South’s solidarity into strategic, institutional leadership.
Sandra Thachirickal Prathap is a Research Intern with the Observer Research Foundation
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Sandra Thachirickal Prathap is a Research Intern with the Observer Research Foundation ...
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