Policy convergence and technology incubation as drivers of rural dairy entrepreneurship: Evidence from Rajasthan, India

Abstract:

India contributes over 23% of global milk production, with the dairy sector accounting for nearly 5% of national GDP and supporting more than 80 million rural households (NDDB, 2023; FAO, 2022) [4]. Despite its scale, the sector remains predominantly subsistence-oriented, characterized by low levels of value addition, weak technological integration, and limited entrepreneurial transformation. In alignment with the national vision of Viksit Bharat @2047, this study examines how policy convergence and technology incubation can transform rural dairy practices into scalable entrepreneurial ecosystems. 
Grounded in the Entrepreneurial Ecosystem Theory (Isenberg, 2010) [7] and Innovation Systems Approach (Freeman, 1987; Lundvall, 2010) [6, 9], the study adopts a mixed-method exploratory design. Primary data were collected from 150 dairy entrepreneurs across Rajasthan, complemented by 20 stakeholder interviews and extensive policy analysis. Quantitative analysis using regression and correlation models reveals that access to incubation support significantly influences income diversification (β = 0.32, p<0.01), while digital adoption enhances operational efficiency (β = 0.24, p<0.05). 
Findings indicate that although 70% of milk procurement is facilitated through cooperative networks, nearly 64% of rural dairy entrepreneurs lack access to incubation infrastructure, advanced processing technologies, and digital platforms. This institutional gap constrains enterprise scalability. The study proposes an Incubation-Centred Dairy Entrepreneurship Ecosystem Model (IC-DEEM) integrating policy convergence, district-level incubation clusters, and digital innovation systems. The proposed model is expected to enhance value-added dairy participation, improve income diversification, and strengthen entrepreneurial capabilities, thereby positioning dairy entrepreneurship as a strategic driver of inclusive growth under Viksit Bharat @2047.