How cooperatives are shaping an atmanirbhar bharat

On July 6, as the world observes International Cooperative Day, India has more than just a reason to celebrate, it has a story to tell. A story of transformation, innovation, and empowerment unfolding quietly across its villages, driven by one of the oldest yet most potent engines of inclusive growth- cooperatives.

Under Prime Minister Narendra Modi’s visionary leadership, and with Union Home and Cooperation Minister Amit Shah at the helm, the Ministry of Cooperation which was established just three years ago is writing a new chapter in India’s economic journey. From freeing farmers from the grip of loan sharks to creating 1.15 crore Lakhpati Didis, the cooperative model is no longer a relic of the past but a dynamic vehicle of change for India.

For decades, India’s cooperative sector operated under a fragmented administrative structure with oversight scattered across multiple departments. This changed in July 2021 with the creation of the Ministry of Cooperation. The Ministry was born with a singular purpose to realise PM Modi’s mantra of “Sahkar Se Samriddhi”.

In just four years, over 56 major policy initiatives have been introduced in just a few years, transforming the cooperative sector into a vehicle of rural empowerment. Over ₹2,500 crore has been spent on computerising nearly 68,000 Primary Agricultural Credit Societies (PACS), with over 43,000 now functioning as Common Service Centres (CSCs), bringing 300+ government services to the doorstep of rural citizens.

A comprehensive database of over 8 lakh cooperative societies has been created, covering nearly 30 crore members. Loan disbursals through the National Cooperative Development Corporation have quintupled in three years, soaring from ₹25,000 crore to ₹1.28 lakh crore.

These reforms are not just institutional, they’re deeply personal and have deeply impacted crores of people. Consider Umaid Thakore of Chiloda village in Gujarat, who accessed an interest-free loan through his local PACS to purchase a tractor, avoiding high-interest debts. Meanwhile, in Keonjhar, Odisha, tribal entrepreneur Sumati Mundari transformed a ₹4 lakh SHG loan into a thriving poultry and dairy business, sending her daughter to study engineering and earning the title of Lakhpati Didi.

These are not isolated stories. These people are the face of a wider revolution. Over 1.15 crore women across India have crossed the ₹1 lakh annual income threshold through SHG-led cooperative initiatives. They represent a quiet economic emancipation that is reshaping rural India.

The world has taken note of the revolution that is shaping the rural landscape of India. In the 2023 rankings released by the International Cooperative Alliance, Indian cooperatives IFFCO and Amul (GCMMF) secured the top two global spots based on turnover relative to GDP per capita—an emphatic endorsement of India’s cooperative leadership. Recognising this momentum, the United Nations has declared 2025 the International Year of Cooperatives. Amit Shah rightly called it “a milestone in empowering farmers and women around the world.”

The Ministry’s roadmap ahead is equally ambitious. By setting up 2 lakh new PACS, the government aims to ensure every panchayat in India has a cooperative touchpoint. Plans are also afoot to launch a cooperative taxi service, where drivers are members and profits are shared equitably combining entrepreneurship with ethics. A cooperative-led insurance company, envisioned to become India’s largest private insurer, is also on the anvil.

In PM Modi’s words, “Cooperatives are not just any system, but a belief, a spirit.” They convert ordinary institutions into engines of economic transformation. The vision of the government has echoed this sentiment, emphasising that a modern, robust cooperative structure is vital to India’s development journey.

As India moves toward becoming a $5 trillion economy, it is imperative that growth is not just fast, but also fair. The Modi government’s cooperative-led approach ensures that prosperity is not a privilege of the few but a right of the many. With a blend of digital tools, inclusive policies, and people-first governance, India’s cooperative movement is evolving from legacy to leadership.

This International Cooperative Day, let us acknowledge that India’s cooperative revolution is not just alive, it’s thriving. And with the right vision, it might just become the backbone of a truly Atmanirbhar Bharat.

(The writer is an economic and political analyst and columnist. He regularly writes for different national dailies and participates as a panelist on news channels.)

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