Transforming India's Cooperative Sector for Inclusive Economic Growth

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The Ministry of Cooperation celebrated its 5th Foundation Day on 6th July 2026 by introducing digital and infrastructure projects.
The cooperative movement in India follows the core philosophy of Vasudhaiva Kutumbakam and works under the vision of Sahkar Se Samriddhi.
The government established the dedicated Ministry of Cooperation on 6th July 2021 to reform, modernise, and professionalise cooperative societies across the nation.

India hosts one of the largest cooperative ecosystems in the world with over 8.5 lakh cooperatives and 32 crore members.
Cooperative institutions operate across 30 economic sectors and cover nearly 98% of rural India.
Women play a central role in this movement, with nearly 10 crore women connected through Self-Help Groups (SHGs).
Primary Agricultural Credit Societies exist in 2.55 lakh Gram Panchayats, while dairy cooperatives cover 87,159 Gram Panchayats and fisheries societies cover 29,964 Gram Panchayats.
Geographically, top five states including Maharashtra, Gujarat, Telangana, Madhya Pradesh, and Karnataka account for 57% of all cooperatives, with Maharashtra alone holding over 25%.
During Financial Year 2025-26, the National Cooperative Development Corporation (NCDC) sanctioned Rs 1.55 lakh crore and disbursed Rs 1.27 lakh crore to support cooperative enterprises.

Every cooperative society operates on democratic principles where each member holds one member, one vote power.
The 97th Constitutional Amendment Act, 2011 granted constitutional protection to cooperatives across three key areas.
Under Article 19(1)(c), citizens enjoy the fundamental right to form cooperative societies.
Under Article 43B, state governments must promote voluntary formation and autonomous functioning of cooperative societies.
Part IXB (Articles 243ZH to 243ZT) sets guidelines for democratic management and regular elections in cooperatives.
Single-state cooperatives fall under the State List managed by state registrars, while multi-state cooperatives fall under the Union List under the Multi-State Cooperative Societies Act, 2002.

Cooperative institutions drive 20% of India's agricultural credit through grassroots bodies like Primary Agricultural Credit Societies (PACS) and district central cooperative banks.
In agricultural inputs, cooperatives manage 35% of fertilizer distribution, 30% of fertilizer production, and 40% of sugar production in India.
Cooperatives handle 13% of wheat procurement and 20% of paddy procurement for national food security.
Dairy cooperatives cover 70% of Indian districts, where societies like AMUL return 80% of consumer spend directly to farmers.
The National Cooperation Policy 2025 presents a long-term plan from 2025 to 2045 to create 2 lakh new multipurpose PACS across the country.

The government is converting 50,000 PACS into e-PACS using specialized enterprise software to bring complete digital transparency.
Model bye-laws now enable PACS in 32 States and UTs to carry out 25 diverse business activities like retail, fuel outlets, and healthcare.
As of June 2026, 39,177 PACS work as Pradhan Mantri Kisan Samriddhi Kendras, 54,117 PACS serve as Common Service Centres, and 4,248 have approval for Jan Aushadhi Kendras.
The government is creating the world's largest decentralised storage network, completing grain godowns across 145 PACS with 68,702 metric tonnes of capacity.
The White Revolution 2.0 initiative targets a 50% increase in milk procurement by 2028-29 and has registered 25,282 new dairy cooperative societies.
The government established three new national cooperatives: National Cooperative Exports Limited (NCEL), National Cooperative Organics Limited (NCOL), and Bharatiya Beej Sahakari Samiti Limited (BBSSL).
Under corporate tax reforms, the government cut the tax surcharge for cooperatives from 12% to 7% and reduced Minimum Alternative Tax (MAT) from 18.5% to 15%.
For urban banking, the National Urban Cooperative Finance and Development Corporation launched Sahakar CBS for core banking and Sahakar Sahyogi for AI customer support.
India launched its first driver-owned ride-hailing cooperative platform called Bharat Taxi, which connects 6.37 lakh drivers with 35.77 lakh customers across major metropolitan cities.

Overlapping regulation between state registrars, the Reserve Bank of India (RBI), and the central ministry creates jurisdictional confusion.
Weak internal controls and political interference cause governance deficits, leading to financial scams like the PMC Bank collapse.
Many rural cooperatives lack access to modern working capital, capital goods, cold storage facilities, and processing equipment.
Most primary societies still operate manually without mobile banking systems, digital accounting tools, or links to platforms like ONDC.
Social barriers like caste hierarchies and gender bias restrict vulnerable communities from gaining leadership roles in village societies.
Primary cooperatives face tough competition from commercial private banks, aggressive fintech firms, and corporate agribusinesses.

India must establish a unified regulatory framework that clarifies roles between state departments, the RBI, and NABARD.
Cooperatives should implement mandatory professional audits, transparent elections, and independent board supervision.
Financial institutions must connect cooperatives with credit guarantee schemes like CGTMSE and development funds like MUDRA.
Primary societies should adopt digital software, mobile payment systems, and direct listing on the Government e-Marketplace (GeM).
States should enforce leadership reservations for women and marginalized communities to build inclusive cooperative leadership.
Cooperatives must build umbrella retail brands like Bharat Organics and diversify into solar energy under PM-KUSUM.

According to the World Cooperative Monitor 2025, the top 300 global cooperatives generated $2.8 trillion in turnover in 2023.
India's AMUL achieved a record turnover of Rs 1 lakh crore in 2025-26 and ranked first globally in turnover relative to national GDP per capita.
Fertilizer cooperative IFFCO recorded a turnover of Rs 45,468 crore in 2025-26 after inventing liquid Nano Urea and Nano DAP.
Tribhuvan Sahkari University in Anand, Gujarat, stands as India's first dedicated cooperative university for higher education and skill development.
Export body NCEL exported 15.4 lakh metric tonnes of agricultural goods worth Rs 6,295 crore to 38 countries by June 2026.