ISB-Himachal MoU Targets $2.52 Billion Untapped Forest Economy

Himachal Pradesh is turning to AI, satellite mapping, and community-led enterprises to unlock a potential $2.52 billion (₹22,600 crore) forest economy, in a major push to convert the state’s natural wealth into sustainable rural income, and the Indian School of Business has joined the effort, with Prof. Ashwini Chhatre the torchbearer of the program at ISB

The Himachal Pradesh Forest Department has signed a five-year Memorandum of Understanding (MoU) with the Bharti Institute of Public Policy at the Indian School of Business (ISB BIPP), aiming to identify and responsibly develop the economic potential of the state’s forests and pastoral resources.

The partnership follows a large-scale forest inventory that combined ground-level data collected by forest guards with satellite imagery, artificial intelligence, and machine learning.

“This partnership reflects what is possible when rigorous science is grounded in field reality,” said Prof. Ashwini Chhatre while signing the MoU.

$2.52 Billion Forest Opportunity Identified

The joint assessment estimates that five key forest bioresources could collectively represent $2.52 billion ( ₹22,600 crore) in untapped economic value.

Amla accounts for the largest estimated opportunity at ₹8,700 crore (approximately US$910 million), followed by pine needles at ₹5,500 crore (US$575 million), wild mangoes at ₹4,800 crore (US$502 million), sal seeds at ₹2,400 crore (US$251 million) and rhododendron flowers at ₹1,200 crore (US$125 million).

The strategy, however, is not based on unrestricted commercial extraction. Officials said harvesting will be limited to a sustainable, species-specific “yield sweet spot” designed to protect ecological resources while creating economic opportunities.

That balance could become critical as Himachal Pradesh seeks to raise rural incomes without adding pressure to its fragile mountain ecosystems.

AI Meets Ground-Level Forest Data

The scale of the underlying data collection is significant. More than 500 forest guards recorded over 200,000 tree-level observations and species-tagged images as part of the joint inventory.

The team combined this information with satellite imagery and AI/ML tools, then validated it through fieldwork.

Maps have already been created for seven species, including khair, bamboo, chir pine, amla, wild mango, sal and rhododendron. The findings have been published jointly as Counting Green Wealth.

Officials say the information is already influencing forest management. The Palampur Forest Division has become the first division to incorporate the data into its working plan, with the new MoU expected to expand the approach across other divisions before eventually covering the entire state.

Women-Led Forest Businesses Could Get a Major Push

A major component of the agreement is developing the forest economy and community enterprises, including women-led producer companies and stronger market connections.

The Pir Panjal Jungle Producer Company in Pangi was showcased as an example of how local communities can build businesses around forest resources. The women-owned enterprise is involved in the thangi, or Himalayan hazelnut, trade.

The model could provide a blueprint for converting locally available forest products into higher-value businesses while keeping communities involved in the economic chain.

Over 500 forest guards spent months gathering this data, giving the estimates real credibility for economic decisions,” said Prof. Ashwini Chhatre.

Chief Minister Sukhvinder Singh Sukhu said the partnership could help bring science, communities and government together to reshape forest governance and strengthen Himachal Pradesh’s rural economy.

He also pointed to opportunities involving medicinal plants such as harad and bel, along with further assessment of thangi’s nutritional and commercial potential.

New Forest Intelligence Platform Planned

The MoU goes beyond mapping natural resources. One of its four major pillars is creating a Forest Intelligence Platform, initially piloted in Palampur before a potential statewide rollout.

The agreement also includes a grazing portal and pastoral database under the Himachal Pradesh Grazing Policy, 2026. The system is planned to connect with platforms including Aadhaar, HimParivar, Bharat Pashudhan and the PEHEL scheme.

Training and capacity-building for Forest Department personnel and producer companies will form the fourth major area of cooperation.

Himachal’s Green Wealth Becomes Economic Strategy

The partnership signals a broader shift in how Himachal Pradesh could manage forest resources. Instead of treating forests solely as conservation assets, the state is attempting to combine forest conservation, technology, rural entrepreneurship and sustainable economic development.

With $2.52 billion in potential value identified, the challenge now will be turning data into viable businesses without damaging the ecosystems that generate that wealth in the first place.