A review on market integration and financial inclusion in forest-based livelihoods: An empirical analysis of VDVK expansion in Chhattisgarh

Abstract

Present study aims to examine the Policy-Driven Market Integration and Financial Deepening in Forest-Based Livelihoods in Chhattisgarh. The findings demonstrate quick structural change driven by policy. Between 2018 and 2023, SHGs jumped from 500 to 10,000, and Van Dhan Vikas Kendra (VDVKs) expanded from 27 to 550. While the purchase value significantly increased from ₹ 50 crore to ₹ 1,200 crore, the total number of heirs increased from 0.8 lakh to 7 lakh, the total number of heirs increased from 0.8 lakh to 7 lakh. The number of heirs jumped from 0.8 lakh to 7 lakh. Tendu leaves remained veritably stable (3.06 growth; CAGR 0.60, CV 1.20) while chironji recorded the loftiest growth (33.33, CAGR 5.92, CV 10.20), indicating diversification toward advanced- value but kindly unpredictable products. The number of beneficiaries jumped from 0.8 lakh to 7 lakh. Tendu leaves remained very stable (3.06% growth; CAGR 0.60%, CV 1.20%) while chironji recorded the highest growth (33.33%, CAGR 5.92%, CV 10.20%), indicating diversification toward higher-value but somewhat volatile products. Number of Commodity rising from 20 to 180 (800%) and value-added turnover rising from ₹5 crore to ₹100 crore (1900%), value addition greatly improved. Women run 96.65% of procurement centers, 80.85% of processors, and 68.23% of collectors. Overall, the results support an institution-led development pathway in the NTFP sector where financial deepening, commercialization, and gender-inclusive entrepreneurial consolidation came after quick institutional scale.